Question

38) P Company purchased 90% of the common stock of S Company on January 2, 2017...

38) P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Company’s stockholders’ equity was as follows:
Common stock, $20 par value $400,000
Other contributed capital 100,000
Retained earnings 450,000
During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land.
Required:
Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

All eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017 are as follows:

Equity in subsidiary income 270000

Dividends declared s company. 90000

Investment in s company. 180000

Common stock - s 400000

Other contributed capital - s 100000

1/1 retained earnings - s. 450000

Difference b/w implied and book value - 50000

Investment in s company. 900000

Non controlling interest in equity. 100000

Land. 50000

Difference b/w implied and book value. 50000

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
34) On January 1, 2017, Prince Company purchased an 80% interest in the common stock of...
34) On January 1, 2017, Prince Company purchased an 80% interest in the common stock of Sivet Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary’s land. The following information is from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2017: SIVET CONSOLIDATED COMPANY BALANCES 1/01/17 retained earnings $300,000 $1,400,000 Net income 220,000 680,000 Dividends declared...
Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014,...
Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows: Current assets $1,123,900 Plant and equipment 976,700 Land 163,170    Total assets $2,263,770 Liabilities $847,960 Common stock, $20 par value 849,200 Other contributed capital 459,020 Retained earnings 211,390    Total 2,367,570 Less treasury stock at cost, 5,190 shares 103,800    Total equities $2,263,770 Prepare the elimination entry required for the preparation of a...
At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo Company...
At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo Company for $533,615. On that date, Succo Company’s stockholders’ equity consisted of the following: Common stock $323,500 Other contributed capital 107,200 Retained earnings 131,000    Total $561,700 During 2017, Succo Company reported net income of $43,400 and distributed dividends in the amount of $18,300. Succo Company’s retained earnings balance at the end of 2016 amounted to $158,500. Presidio Company uses the equity method. Prepare in general...
On October 1, 2015, Para Company purchased 90% of the outstanding common stock of Star Company...
On October 1, 2015, Para Company purchased 90% of the outstanding common stock of Star Company for $202,700. Additional data concerning Star Company for 2015 follows: Common stock $65,500 Other contributed capital 28,700 Retained earnings, 1/1 76,100 Net income 57,000 Dividends declared and paid (12/15) 10,300 Any difference between book value and the value implied by the purchase price relates to goodwill. Para Company uses the partial equity method to record its investment in Star Company. (a) Prepare on Para...
Problem 4-6 On January 1, 2011, Plank Company purchased 80% of the outstanding capital stock of...
Problem 4-6 On January 1, 2011, Plank Company purchased 80% of the outstanding capital stock of Scoba Company for $52,300. At that time, Scoba’s stockholders’ equity consisted of capital stock, $54,300; other contributed capital, $5,000; and retained earnings, $4,100. On December 31, 2015, the two companies’ trial balances were as follows: Plank Scoba Cash $41,800 $22,000 Accounts Receivable 21,000 17,100 Inventory 14,900 8,100 Investment in Scoba Company 68,940 —0— Land 52,800 47,000 Dividends Declared 9,900 7,760 Cost of Goods Sold...
Dividends for Preferred and Common Stock The Stockholders' Equity category of Greenbaum Company's balance sheet as...
Dividends for Preferred and Common Stock The Stockholders' Equity category of Greenbaum Company's balance sheet as of December 31, 2017, appeared as follows: Preferred stock, $100 par, 9%    2,000 shares issued and outstanding $200,000 Common stock, $10 par   40,000 shares issued and outstanding 400,000 Additional paid-in capital 500,000 Total contributed capital $1,100,000 Retained earnings 900,000     Total stockholders' equity $2,000,000 The notes to the financial statements indicate that dividends were not declared or paid for 2015 or 2016. Greenbaum...
On January 1, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for...
On January 1, 20X1, Parent Company purchased 80% of the common stock of Subsidiary Company for $316,000. On this date, Subsidiary had common stock, other paid-in capital, and retained earnings of $40,000, $120,000, and $190,000, respectively. Net income and dividends for 2 years for Subsidiary Company were as follows: 20X1 20X2 Net income $50,000 $90,000 Dividends 10,000 20,000 On January 1, 20X1, the only tangible assets of Subsidiary that were undervalued were inventory and building. Inventory, for which FIFO is...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The stockholders’ equity of both companies is as follows: Jamison Co. Kelly Co. Common Stock 300,000 200,000 Retained Earnings 400,000 450,000 The income and dividend information for both companies for 2018 is listed below. Jamison Co. Kelly Co. Net Income 145,000 70,000 Dividends 50,000 40,000 Directions: Prepare any necessary consolidation entries for 2018.
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for...
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The stockholders’ equity of both companies is as follows: Jamison Co. Kelly Co. Common Stock 300,000 200,000 Retained Earnings 400,000 450,000 The income and dividend information for both companies for 2018 is listed below. Jamison Co. Kelly Co. Net Income 145,000 70,000 Dividends 50,000 40,000 Directions: Prepare any necessary consolidation entries for 2018.
Pell Company purchased 75% of the stock of Silk Company on January 1, 2007, for $1,860,000,...
Pell Company purchased 75% of the stock of Silk Company on January 1, 2007, for $1,860,000, an amount equal to $60,000 in excess of the book value of equity acquired. All book values were equal to fair values at the time of purchase (i.e., any excess payment relates to subsidiary goodwill). On the date of purchase, Silk Company's retained earnings balance was $200,000. The remainder of the stockholders' equity consists of no-par common stock. In 2011, Silk Company declared dividends...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT