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On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding...

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Accounting

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On September 30, 2017, AL Manama Corporation paid $550,000 to acquire 72% of the outstanding common stock of Ahlia Company which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Ahlia Company on September 30, 2017, were limited to the following: Current Fair Values Carrying Amounts Inventories $5,000 $ 20,000 building (net) 260,000 140,000 Instructions: 1. Prepare the journal entry to record the investment on September 30, 2017 (4 marks) 2. Complete the following working paper for consolidated balance sheet of Al Manama Corporation and subsidiary. (6 marks) ALMANAMA CORPORATION AND SUBSIDIARY Working Paper for Consolidated Balance Sheet September 10, 2017 AL Manama Eliminations Consolidated Corporation Company Dr. CE Assets Ahli 80,000 60.000 20.000 240,000 Inventories Other current assets Investment in Ahlia Co Building ther) 550.000 460.000 140,000 1.150.000 40.000 190.000 Totales Liabilities & Stockholders' Equity Current liabilities Long-ter det Common stock, S1 par Additional paid in capital Retained earning 200.000 200,000 100,000 400.000 10000 90.000 70,000 S000 160,000 Tocal abilities stockholders'uty 1.150.000 400.000

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