Answered You can hire a professional tutor to get the answer.
Peat Company acquired a 100% interest in Moss by issuing 50,000 shares of its $1 par value common stock valued at $776,000.
Peat Company acquired a 100% interest in Moss by issuing 50,000 shares of its $1 par value common stock valued at $776,000. Prior to the transaction, both entities were under common control; accordingly, the transaction is accounted for as a pooling of interests under US GAAP.
The parent and the subsidiary report the following balance sheets on the acquisition date, prior to the issuance of stock by Peat:
Peat:
Cash 920753
A/R 725760
Inventory 1099980
PPE, net 5291244
Current Liabilities 814779
LT Liabilities3379200
Common Stock927045
APIC688905
Retained Earnings2227808
Moss:
Cash107576
A/R165648
Inventory212772
PPE, net5291244
Current Liabilities165648
LT Liabilities238000
Common Stock47600
APIC59500
Retained Earnings368900
Provide the journal entry by Peat to record the investment and the consolidating entries.
