On January 1, 2008, Parchment Co. owned 85% of the common stock of Fancy Co. On that date, Fancy 's stockholders' equity accounts had the balances that is given belo:
Common stock ($5 Par value) $250,000
Additional paid in capital 105,000
Retained Earnings 315,000
Total Stockholders' Equity $670,000
Balance in Parchment's Investment in Fancy Co. account was $642,500. On January 1, 2008, Fancy Co. sold 10,000 shares of earlier unissued common stock for $15 per share. Parchment obtained 1,000 of these shares.
Create the entry Parchment requires to make and find out the balance in Parchment's investment in Fancy account.