The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Based on the information given,X Company and Y Company reported wages payable of
A) $50,000 and $28,000 respectively.
B) $60,000 and $32,000 respectively.
C) $40,000 and $35,000 respectively.
D) $28,000 and $60,000 respectively.

Question

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.
 
-Based on the information given,X Company and Y Company reported wages payable of
A) $50,000 and $28,000 respectively. 
B) $60,000 and $32,000 respectively. 
C) $40,000 and $35,000 respectively. 
D) $28,000 and $60,000 respectively.

Quizplus · Accepted Answer

The information provided states that X Company reported wages payable of $50,000 and Y Company reported wages payable of $28,000.

The Following Information Applies to Questions 21-26