Question

This is my fourth time posting the same exact question. I left you a table below with some of my answers I just need you to complete the table and complete entries *G, Ta, *C, S, A,D, I, E, TI, G, and ED. Thank You.

On January 1, 2013, Monica Company acquired 70 percent of Young Company’s outstanding common stock for $784,000. The fair value of the noncontrolling interest at the acquisition date was $336,000. Young reported stockholders’ equity accounts on that date as follows

Common stock—$10 par value	$	100,000
Additional paid-in capital		80,000
Retained earnings		640,000

     In establishing the acquisition value, Monica appraised Young’s assets and ascertained that the accounting records undervalued a building (with a five-year life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

     During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

Year	Transfer Price		Inventory Remaining at Year-End (at transfer price)
2013	$	40,000		$	33,000
2014		60,000			35,000
2015		70,000			41,000

     In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2014, for $59,000. The equipment had originally cost Monica $96,000. Young plans to depreciate these assets over a 5-year period.

     In 2015, Young earns a net income of $210,000 and distributes $70,000 in cash dividends. These figures increase the subsidiary’s Retained Earnings to a $970,000 balance at the end of 2015.

     Monica employs the equity method of accounting. Hence, it reports $133,740 investment income for 2015 with an Investment account balance of $868,390. Under these circumstances, prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Complete Entries *G, Ta, *C, S, A,D, I, E, TI, G, and ED.

Please do not give me answers to something does not relate to this question. I`m tired of re-posting the same exact question over and over.

Answer 1

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