Accounting question?


Question:
The owner of Lahiere's acquires a 10% ownership interest in Oenophile for $100,000, Oenophile issues new stock as part of the transaction. what is the journal entry?

Answer:
Since there isn't enough information to do the accounting for Owenphile, I'll assume that you only need Lahiere's JE

At inception:
Dr: Securities $100k
Cr: Cash $100k
Dr Investment in Oenophile $100,000
Cr Cash at bank $100,000

Both are balance-sheet accounts.
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