Question
Star & Anderson SAOG. acquired all of the common stock of Wilkinson SAOG. on January 1,...
Star & Anderson SAOG. acquired all of the common stock of Wilkinson SAOG. on January 1, 2018. As of that date, Wilkinson had the following trial balance:
|
Particulars |
Debit |
Credit |
|
Sundry Creditors |
30,000 |
|
|
Land & Buildings (10 year life) |
70,000 |
|
|
Additional Paid-in –Capital |
30,000 |
|
|
Sundry Debtors |
25,000 |
|
|
Cash and bank balances |
18,000 |
|
|
Short Term Investments |
17,000 |
|
|
Equity share capital |
150,000 |
|
|
Inventory |
55,000 |
|
|
Plant and Equipment (4 year life) |
120,000 |
|
|
Land |
45,000 |
|
|
Long term borrowings ( Maturity 31/12/2020 |
90,000 |
|
|
Retained earnings (Opening Balance) |
60,000 |
|
|
Supplies |
10,000 |
|
|
Total |
360,000 |
360,000 |
During 2018, Wilkinson SAOG reported net income of OMR 48,000 while paying dividends of OMR 6,000.
During 2019, Wilkinson SAOG reported net income of OMR 66,000
while paying dividends of OMR 18,000.
Assume that Star & Anderson SAOG. acquired the
common stock of Wilkinson SAOG. for OMR 294,000 in cash. As of
January 1, 2018, Wilkinson SAOG land had a fair value of OMR
51,000, its buildings were valued at OMR 94,000, and its equipment
was appraised at OMR 108,000. Any excess of consideration
transferred over fair value of assets and liabilities acquired is
due to an unamortized patent to be amortized over 5 years.
Star & Anderson SAOG decided to use the equity methodfor this investment.
Required: Prepare consolidation worksheet entriesfor December 31, 2018.
Homework Answers
Answer #1
Thanks
Not the answer you're looking for?
Similar Questions
PAM Co. acquired all of the common stock of Sista Co. on January 1, 2017. As...
PAM Co. acquired all of the common stock of Sista Co. on January
1, 2017. As of that date, Sista had the following trial
balance:
Debit
Credit
Accounts payable
$
60,000
Accounts receivable
$
50,000
Additional paid-in capital
60,000
Buildings (net) (20-year life)
140,000
Cash and short-term investments
70,000
Common stock
300,000
Equipment (net) (8-year life)
240,000
Intangible assets (indefinite life)
110,000
Land
90,000
Long-term liabilities (mature 12/31/19)
180,000
Retained earnings, 1/1/17
120,000
Supplies
20,000
Totals
$
720,000
$
720,000...
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that...
Chapman Company obtains 100 percent of Abernethy Company’s stock
on January 1, 2017. As of that date, Abernethy has the following
trial balance:
Debit
Credit
Accounts payable
$
50,000
Accounts receivable
$
40,000
Additional paid-in capital
50,000
Buildings (net) (4-year
remaining life)
120,000
Cash and short-term
investments
60,000
Common stock
250,000
Equipment (net) (5-year
remaining life)
200,000
Inventory
90,000
Land
80,000
Long-term liabilities (mature
12/31/20)
150,000
Retained earnings, 1/1/17
100,000
Supplies
10,000
Totals
$
600,000
$
600,000
During 2017, Abernethy...
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that...
Chapman Company obtains 100 percent of Abernethy Company’s stock
on January 1, 2017. As of that date, Abernethy has the following
trial balance:
Debit
Credit
Accounts payable
$
54,100
Accounts receivable
$
48,500
Additional paid-in capital
50,000
Buildings (net) (4-year remaining life)
130,000
Cash and short-term investments
66,000
Common stock
250,000
Equipment (net) (5-year remaining life)
437,500
Inventory
109,000
Land
89,000
Long-term liabilities (mature 12/31/20)
178,500
Retained earnings, 1/1/17
358,800
Supplies
11,400
Totals
$
891,400
$
891,400
During 2017, Abernethy...
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that...
Chapman Company obtains 100 percent of Abernethy Company’s stock
on January 1, 2017. As of that date, Abernethy has the following
trial balance:
Debit
Credit
Accounts
payable
$
58,300
Accounts
receivable
$
43,500
Additional
paid-in capital
50,000
Buildings (net)
(4-year remaining life)
210,000
Cash and
short-term investments
83,250
Common
stock
250,000
Equipment (net)
(5-year remaining life)
417,500
Inventory
95,000
Land
103,000
Long-term
liabilities (mature 12/31/20)
163,000
Retained
earnings, 1/1/17
445,850
Supplies
14,900
Totals
$
967,150
$
967,150
During 2017, Abernethy...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017,...
1)Presents Inc. acquired all of the outstanding common stock of
Santa Co. on January 1, 2017, for $257,000. Annual amortization of
$19,000 resulted from this acquisition. Presents reported net
income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in
dividends each year.
Santa reported net income of $40,000 in 2017 and $47,000 in 2018
and paid $10,000 in dividends each year. On the consolidated
financial statements for 2017,
a)what amount should have been shown for Equity in...
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2014. As of that...
Chapman Company obtains 100 percent of Abernethy Company’s stock
on January 1, 2014. As of that date, Abernethy has the following
trial balance:
Debit
Credit
Accounts payable
$
56,700
Accounts receivable
$
43,800
Additional paid-in capital
50,000
Buildings (net) (4-year life)
143,000
Cash and short-term investments
80,250
Common stock
250,000
Equipment (net) (5-year life)
295,000
Inventory
110,500
Land
112,000
Long-term liabilities (mature 12/31/17)
171,000
Retained earnings, 1/1/14
268,750
Supplies
11,900
Totals
$
796,450
$...
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that...
Chapman Company obtains 100 percent of Abernethy Company’s stock
on January 1, 2017. As of that date, Abernethy has the following
trial balance:
Debit
Credit
Accounts payable
$
51,500
Accounts receivable
$
46,500
Additional paid-in capital
50,000
Buildings (net) (4-year remaining life)
190,000
Cash and short-term investments
67,750
Common stock
250,000
Equipment (net) (5-year remaining life)
442,500
Inventory
107,000
Land
93,500
Long-term liabilities (mature 12/31/20)
166,500
Retained earnings, 1/1/17
448,250
Supplies
19,000
Totals
$
966,250
$
966,250
During 2017, Abernethy...
Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of...
Giant acquired all of Small’s common stock on January 1, 2014,
in exchange for cash of $770,000. On that day, Small reported
common stock of $170,000 and retained earnings of $400,000. At the
acquisition date, $64,500 of the fair-value price was attributed to
undervalued land while $72,000 was assigned to undervalued
equipment having a 10-year remaining life. The $63,500 unallocated
portion of the acquisition-date excess fair value over book value
was viewed as goodwill. Over the next few years, Giant...
Putt Corporation acquired 70 percent of Slice Company’s voting common stock on January 1, 20X3, for...
Putt Corporation acquired 70 percent of Slice Company’s voting
common stock on January 1, 20X3, for $158,900. Slice reported
common stock outstanding of $100,000 and retained earnings of
$85,000. The fair value of the noncontrolling interest was $68,100
at the date of acquisition. Buildings and equipment held by Slice
had a fair value $25,000 higher than book value. The remainder of
the differential was assigned to a copyright held by Slice.
Buildings and equipment had a 10-year remaining life and...
Woody Corporation acquired 70% of Buzz Company’s voting common stock on January 1, 20X3, for $158,900....
Woody Corporation acquired 70% of Buzz Company’s voting
common stock on January 1, 20X3, for $158,900. Buzz reported common
stock outstanding of $100,000 and retained earnings of $85,000. The
fair value of the noncontrolling interest was 68,100 on the date of
acquisition. Buildings and equipment held by Buzz had a fair value
that was $25,000 higher than book value. The remainder of the
differential was assigned to a copyright held by Buzz. Buildings
and Equipment had a 10-year remaining life...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 37 minutes ago
asked 44 minutes ago
asked 48 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 3 hours ago