Question

Which one of the following accounts would not appear in the consolidated financial statements at the...

Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the combination?

a. Goodwill. b. Equipment. c. Investment in Subsidiary. d. Common Stock. e. Additional Paid-In Capital.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Answer:
Investment in Subsidiary should not appear on the consolidatec statements at end of first period of combination.
Option (C ) is Correct
Reason:
Goodwill , Equipment are part of Assets part in Balance Sheet where as
Common Stock and Additional Paid-In Capital are part of Liability and Equity part while preparing the consolidated financial statements at the end of the first fiscal period . So the only one Investment in Subsidiary is not a part of it.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What account balances in the subsidiary stockholders' equity accounts should be eliminated in preparing a consolidated...
What account balances in the subsidiary stockholders' equity accounts should be eliminated in preparing a consolidated balance sheet? A) Common stock B) Additional paid-in capital C) Retained Earnings D) All of these account balances are eliminated
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several...
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Mergaronite Hill Revenues $ (610,000 ) $ (250,000 ) Cost of goods sold 262,000 96,000 Depreciation expense 104,000 40,000 Investment income NA NA Retained earnings, 1/1/18 (904,000 ) (590,000 ) Dividends declared 130,000 36,000 Current assets 204,000 690,000 Land 286,000 82,000 Buildings (net)...
Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company...
Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company acquired a subsidiary on January 1, 2018. The purchase price was $760,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life (years) Property, plant and equipment (PPE), net $360,000 12 Goodwill 400,000 Indefinite $760,000 The AAP asset relating to undervalued PPE with...
Q1: Assume you have that you have the following information when preparing the consolidated financial statements...
Q1: Assume you have that you have the following information when preparing the consolidated financial statements in 2020 (fiscal year end is 12/31/2020). The consolidated entity includes the parent company and an 80%-owned subsidiary. On January 1, 2018, the subsidiary sold to its parent, for a sale price of $120,000, equipment that originally cost $180,000. The subsidiary originally purchased the equipment on January 1, 2015, and depreciated the equipment assuming a 12-year useful life (straight-line with no salvage value). The...
For each account, place the letter of the financial statement on which it would be found...
For each account, place the letter of the financial statement on which it would be found in the space provided. Some items may appear on more than one statement. a) Income Statement b) Balance Sheet c) Statement of Retained Earnings d) Statement of Owners Capital 1. Retained Earnings 2. Accumulated Depreciation 3. Common Stock 4. Dividends 5. Additional Paid- in Capital 6. Gains on sales of Equity 7. Investment in common stock 8. Treasury Stock 9. Preferred Stock 10. Accounts...
which of the following is a limitation of consolidated financial statements: a- Consolidated statements are benefitial...
which of the following is a limitation of consolidated financial statements: a- Consolidated statements are benefitial only when the consolidated companies operate in different industries b- consolidated companies provide no benefit for the stockholders and creditors of the parent company c- Consolidated statements are benefitial only when the consolidated companies operate within similar industries
Part A: Multiple Choice Questions In a business combination resulting in a parent company-subsidiary relationship, the...
Part A: Multiple Choice Questions In a business combination resulting in a parent company-subsidiary relationship, the parent company's Investment in Subsidiary Common Stock ledger account balance is: Allocated to individual asset and liability ledger accounts in a parent company journal entry Displayed among noncurrent assets in the consolidated balance sheet Used as a basis for adjusting the subsidiary's asset and liability account balances in the subsidiary's ledger to current fair values Eliminated with a working paper elimination for the working...
Prepare a consolidated workpapers and journal enteries for the following scenarios: Include calculations Parent Corporation acquired...
Prepare a consolidated workpapers and journal enteries for the following scenarios: Include calculations Parent Corporation acquired a 70 percent interest in Subsidiary Corporation’s outstanding voting common stock on January 1, 2011, for $735,000 cash. The stockholders’ equity of Subsidiary on this date consisted of $750,000 capital stock and $150,000 retained earnings. The difference between the fair value of Subsidiary and the underlying equity acquired in Subsidiary was assigned $7,500 to Subsidiary’s undervalued inventory, $21,000 to undervalued buildings, $31,500 to undervalued...
When preparing consolidated financial statements, examples of intragroup transactions include all of the following, except for:...
When preparing consolidated financial statements, examples of intragroup transactions include all of the following, except for: a. The parent company rents an office building that it owns to one of its subsidiaries b. A subsidiary sells some of its equipment to its parent company c. A subsidiary provides consultation services to its parent company d. A parent company pays dividends to its shareholders
Flow of Accounts into Financial Statements The balances for the accounts that follow appear in the...
Flow of Accounts into Financial Statements The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, retained earnings statement, or balance sheet. 1. Accumulated Depreciation—Building 2. Cash 3. Fees Earned 4. Insurance Expense 5. Prepaid Rent 6. Supplies 7. Dividends 8. Wages Expense
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT