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3 years ago

Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?

Business

1 answer:

DedPeter [7]3 years ago

8 0

Answer:

The reason to prepare the consolidation worksheet is to maintain the record of what is finally entered in the books to record the transactions in between the holding and subsidiary.

This basically thus, requires the elimination of all the assets and liabilities of the subsidiary, and creation of such assets and liabilities into the balances of the holding(parent) company. In this manner the elimination is necessary to record.

So that there is no error in the form of multiple record of assets and liabilities, or in the form of no record of assets and liabilities of the subsidiary.

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The transactions of Spade Company:

diamong [38]

Answer:

Trial Balance

Debit Credit

Cash $8,982

($16,500 - $479 + $1,947 - $9,125 - $530 + $1,469 - $800)

Common Stock $16,500

Office Supplies $479

Office Equipment $9,125

Accounts Payable ($9.125 - $9,125) $0

Service Fees ($1,947 + $3,498) $5,445

Accounts Receivable ($3,498 - $1,469) $4,967

Rent Expense $530

Dividends $800

Totals $21,945 $21,945

Explanation:

A trial Balance is a list of balances that are extracted from the ledger accounts from which the financial statements are prepared.

First Record the Transaction, then determine account balances.

Cash $16,500 (debit)

Common Stock $16,500 (credit)

Office Supplies $479 (debit)

Cash $479 (credit)

Office Equipment $9.125 (debit)

Accounts Payable $9.125 (credit)

Cash $1,947 (debit)

Service Fees $1,947 (credit)

Accounts Payable $9,125 (debit)

Cash $9,125 (credit)

Accounts Receivable $3,498 (debit)

Service Fees $3,498 (credit)

Rent Expense $530 (debit)

Cash $530 (credit)

Cash $1,469 (debit)

Accounts Receivable $1,469 (credit)

Dividends $800 (debit)

Cash $800 (credit)

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3 years ago

The balance shown in the August bank statement of Colt Company was $23,200 before the bank reconciliation was prepared. After ex

anastassius [24]

Answer:

The answer is letter D

Explanation:

$20.600

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3 years ago

Ajax Corp., an American company, owns a factory in China. Managers often report back to headquarters in the U.S. that Chinese go

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Answer:

The correct answer is bureaucratic.

Explanation:

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3 years ago

Which area is not protected by most homeowners insurance?

IRINA_888 [86]

I’m guessing mostly the home if you can choose 2 it would be the home and personal property

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2 years ago

Daphne is one of the three project managers at Virgo Inc., an art and design studio. Raymond and Gabriel, the other two project

Blababa [14]

Answer:

E) playing safe

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