On December 31,20X8,Pancake Company acquired controlling ownership of Syrup 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,Pancake Company provided consulting services to Syrup 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,Pancake Company and Syrup 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

On December 31,20X8,Pancake Company acquired controlling ownership of Syrup 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,Pancake Company provided consulting services to Syrup 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,Pancake Company and Syrup 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

Pancake Company and Syrup Company reported wages payable of $50,000 and $28,000 respectively, as indicated in choice A.

On December 31,20X8,Pancake Company Acquired Controlling Ownership of Syrup Company