P Company purchased 100% of S Company on January 1, 2002, at its book value. During 2002, P Company received $80,000 in consulting fees from S Company. On the work sheet to prepare a consolidated income statement on December 31, 2002, the following elimination entry is needed:

a. Consulting Fee Revenue 80,000
Consulting Fee Expense 80,000
b. Consulting Fee Expense 80,000
Consulting Fee Revenue 80,000
c Cash 80,000
Consulting Fee Revenue 80,000
d. Consulting Fee Expense 80,000
Cash 80,000

THe answer I turned in was (c). Am I correct or not? Please respond... thanks!:D

I choose (c). For the answer but I do not know if it is correct or not.
Does anyone else have an idea about the answer to this question.
I thought this was a help desk forum from real experts on live answers.


Thanks!