On January 1, 20X1, Paul, Inc. acquired a 90% interest in Stephan Company. The $45,000 excess of purchase price (parent's share only) was attributable to goodwill. On January 1, 20X3, Stephan Company had the following stockholders' equity: Common stock, $10 par Other paid-in capital Retained earnings Investment in Stephan Paid-in Capital in Excess of Par-Paul 2,473 Cash On January 2, 20X3, Stephan sold 2,000 additional shares in a private offering. Stephan issued the new shares for $80 per share; Paul, Inc. purchased all the shares. What is the journal entry that Paul will prepare to record this investment? 160,000 $100,000 157,527 200,000 300,000 On January 2, 20X3, Stephan sold 2,000 additional shares in a private offering. Stephan issued the new shares for $80 per share; Paul, Inc. purchased all the shares. What is the journal entry that Paul will prepare to record this investment? Investment in Stephan Paid-in Capital in Excess of Par-Paul 2,473 Cash Cash 160,000 Investment in Stephan Paid-in Capital in Excess of Par-Paul 3,308 Cash 160,000 157,527 Investment in Stephan Paid-in Capital in Excess of Par-Paul 157,171 Investment in Stephan 160,000 156,692 160,000 Cash 2,829 160,000
