On June 30, 200X P paid $375,000 cash for 100% of the Common Stock of S Company. The transaction is an acquisition of wherein the acquired company is not dissolved. S Company is maintained as a separate subsidiary of P Company. It is still an entity, but in this case P Company owns all of it's stock.
A. Prepare the journal entries showing the purchase
B. Prepare a schedule showing the amount of goodwill from this purchase.
C. Prepare a consolidation worksheet showing the eliminations.
D. Prepare a consolidated balance sheet AS OF June 30, 200X using the consolidation worksheet as a basis.