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(Solved): Problem 3-19 (Algo) (LO 3-3a) Question and information are in the first photo. The second photo is ...



Problem 3-19 (Algo) (LO 3-3a) Question and information are in the first photo. The second photo is the first of the following 12 journal entries needed. Can be "No Journal Entry Required" if needed. Here are the 12 journal entries needed: 1. Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 2. Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 3. Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. 4. Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. 5. Prepare entry D to eliminate intra-entity dividend transfers. 6. Prepare entry E to recognize current year amortization expense. 7. Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 8. Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. 9. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. 10. Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. 11. Prepare entry D to eliminate intra-entity dividend transfers. 12. Prepare entry E to recognize current year amortization expense.



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