On January 1, 2011, Panel Company Acquired 90% of the Common

Essay

On January 1, 2011, Panel Company acquired 90% of the common stock of Singapore Company for $650,000.At that time, Singapore had common stock ($5 par) of $500,000 and retained earnings of $200,000.
On January 1, 2013, Singapore issued 20,000 shares of its unissued common stock, with a market value of $7 per share, to noncontrolling stockholders.Singapore's retained earnings balance on this date was $300,000.Any difference between cost and book value relates to Singapore's land.No dividends were declared in 2013.
Required:
A.Prepare the entry on Panel's books to record the effect of the issuance assuming the cost method.
B.Prepare the elimination entries for the preparation of a consolidated statements workpaper on December 31, 2013 assuming the cost method.