Chapter 3 Journal Entries Flashcards
Unrealized Loss - Available For Sale
DR: Unrealized Loss on AFS Securities
CR: Valuation Account (FV Adjustment)
IN OCI
Sell Available For Sale Securities
DR: Cash
DR: Unrealized Gain on AFS Security [out of OCI]
CR: AFS [eliminate]
CR: Realized Gain on AFS [I/S]
Record
DR: Investment in Investee [FV of consideration+fees]
CR: Cash
Record Unrealized Loss on
DR: Unrealized Holding Losses [OCI]
CR: Inv in Investee (or valuation account)
Record Return of Capital Distribution or Liquidating Dividend in
DR: Cash
CR: Inv in Investee
Record Partial Dividend and Partial Return of Capital Distribution in
DR: Cash
CR: Dividend Income [zero out share of R/E]
CR: Inv in Investee [Remainder]
Receipt of Dividend in
DR: Cash
CR: Dividend Income
Record 20%-50% Investment in Sub
DR: Investment in Investee [FV of consideration+fees]
CR: Cash
Record Receipt of Percentage of Sub’s Income in 20%-50% Investment in Sub
DR: Investment in Investee
CR: Equity in earnings/Investee Income
Record Receipt of Dividend in 20%-50% Inv in Sub
DR: Cash
CR: Investment in Investee
Record Acquisition for Cash
DR: Investment in Subsidiary
DR: Legal Expense (if any)
CR: Cash
Record Acquisition for Parent Common Stock
DR: Investment in Subsidiary
DR: Legal Expense (if any)
CR: C/S [Parent’s, at par]
CR: APIC [FV at transaction close date-par]
Consolidating Workpaper Eliminating Entry
DR: Common Stock - Subsidiary [eliminate]
DR: APIC - Subsidiary [eliminate]
DR: R/E - Subsidiary [eliminate]
CR: Investment in Subsidiary [eliminate]
CR: Noncontrolling Interest [eliminate]
DR: Balance Sheet Adj to FV
DR: Identifiable Intangible Assets to FV
DR: Goodwill
Eliminate Intercompany Accounts Payable
DR: Accounts Payable
CR: Accounts Receivable
Eliminate Intercompany Bonds Payable
DR: Bonds Payable
CR: Bonds Investment
