Business, 29.12.2020 22:40 yovann

Peck Company purchased Sanno Company common stock in a series of open-market cashpurchases from 2009 through 2011 as follows: Date: Shares Acquired Cost
Jan 1 , 2009 1800 46,000
Jan 1, 2010 4500 95,000
Jan 1 , 2011 9900 262,350
Sanno Company had 18,000 shares of 20 par value common stock outstanding during the entire period. Retained earnings balances for Sanno Company on relevant dates were
Jan 1 2009 $20,000
Jan 1, 2010 (30,000)
Jan 1, 2011 85,000
Dec 31, 2011 170,000
Dividends in the amount of $50,000 were distributed by Sanno Company only in 2011. Any difference between implied and book values assigned to good will. Peck company uses the cost method to account for its investment in Sanno Company,
Required:
A. Prepare journal entries that Peck company would record on its books during 2011 to account for its investment in Sanno Company.
B. Prepare the workpaper elimiating entries necessary to prepare a consildatted statement workpaper on Dec 31, 2011

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Peck Company purchased Sanno Company common stock in a series of open-market cashpurchases from 2009...

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