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Scott Corporation purchased 100% of Nina Inc. for $128,000 on January 1, 20X7. Scott paid...

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Accounting

Scott Corporation purchased 100% of Nina Inc. for $128,000 on January 1, 20X7. Scott paid a premium of $100,000 in excess of Book Value of Nina. The premium should be assigned to Goodwill except for $20,000 assigned to equipment with a 10-year remaining life. Below are the Adjusted Trial Balances of the Two Companies: Elimination Entries Combined Worksheet Cash $ 19,500 $ 21,000 Accounts Receivable 70,000 12,000 Inventory 90,000 25,000 Land 30,000 15,000 B&E (net) 205,000 110,000 Investment in Nina 134,000 Accounts payable (45,000) (16,000) Wages Payable (17,000) (9,000) Notes Payable (150,000) (50,000) Common stock (200,000) (60,000) Retained earnings (102,000) (40,000) Sales (260,000) (180,000) CofGS 125,000 110,000 Wage expense 42,000 27,000 Depreciation expense 25,000 10,000 Interest expense 12,000 4,000 Other Explenses 13,500 5,000 Income from subsidiary (Nina) (22,000) Divdends Declared 30,000 16,000 Prepare all elimination entries and complete worksheet.

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