Polka Corporation acquired percent of Song Company's voting stock on January X at underlying book value. Polka uses the
equity method in accounting for its ownership of Song. On December X the trial balances of the two companies are as follows:
Required:
a Prepare the consolidation entries required on December to prepare consolidated financial statements.
b Prepare a threepart consolidation worksheet as of December
Complete this question by entering your answers in the tabs below.
Required
Prepare the consolidation entries required on December X to prepare consolidated financial statements.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
A Record the basic consolidation entry.
B Record the optional accumulated depreciation
consolidation entry.
