Purchase of Subsidiary

School: Academy of Healing Arts Massage and Facial Skin Care           Price: $10.00 USD

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I need this assigment to be complete in proper accounting format. Needs to be completed by the deadline.

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Academy of Healing Arts Massage and Facial Skin Care
Purchase of SubsidiaryRequirement 1Journal entries required recording the business combination on December 31, 2010There is no need to pass any journal entry in the books of Starr as it continues its business as aseparate legal entity.Entries in the books of Palm Corp. On 12/31/2010Investment in Starr CompanyCommon Stock (10,000 x $50)500,000Common Stock (10,000 x $10)100,000Paid-in Capital in Excessof Par400,000Investment in Starr CompanyCommon Stock50,000Paid-in Capital in Excess of Par35,000Cash85,000In the books of Palm the journal entries dont have any debits or credits in order to recordindividual assets or liabilities of Starr as it would be in the case of mergers.Requirement 2PALM CORPORATION AND SUBSIDIARYConsolidated Balance SheetDecember 31, 2010Current assets:Cash ($35,000 + $ 35,000)Inventories ($140,000+$130,000)Other Current A
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