On January 1, 20X9, Zigma Company acquired 100 percent of Standard Company's common shares at underlying book value. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows: Required:
1) Prepare the eliminating entries needed as of December 31, 20X9, to complete a consolidation worksheet.
2) Prepare a three-part consolidation worksheet as of December 31, 20X9.

Question

On January 1, 20X9, Zigma Company acquired 100 percent of Standard Company's common shares at underlying book value. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows:  Required:
1) Prepare the eliminating entries needed as of December 31, 20X9, to complete a consolidation worksheet.
2) Prepare a three-part consolidation worksheet as of December 31, 20X9.

Quizplus · Accepted Answer

The Answer of On January 1, 20X9, Zigma Company acquired 100 percent of Standard Company's common shares at underlying book value. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows:  Required:
1) Prepare the eliminating entries needed as of December 31, 20X9, to complete a consolidation worksheet.
2) Prepare a three-part consolidation worksheet as of December 31, 20X9.

On January 1, 20X9, Zigma Company Acquired 100 Percent of Standard