Multiple Choice
Big Company owns 100% of the outstanding common stock of Small Company. Small Company borrowed $18,000 from Big Company. Which elimination entry is required for this transaction?
A) debit Note Payable for $18,000 and credit Note Receivable for $18,000
B) debit Note Receivable for $18,000 and credit Note Payable for $18,000
C) debit Common Stock for $18,000 and credit Note Receivable for $18,000
D) debit Note Payable for $18,000 and credit Investment in Subsidiary for $18,000
Correct Answer:
Verified
Correct Answer:
Verified
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