Prepare journal entries to eliminate Porter
Company's investment in Sewell Company in the preparation of a...
Prepare journal entries to eliminate Porter
Company's investment in Sewell Company in the preparation of a
consolidated balance sheet at the date of acquisition for
the following case:
Sewell Company Equity Balances
Cash
Percent of Stock Owned
Investment Cost
Common Stock
Other Contributed Capital
Retained Earnings
75
$450,000
$145,000
$190,000
$55,000
There is no difference between the book value of net assets
acquired and the fair values. Prepare the ELIMINATION journal
entries.
EXERCISE 5-4 Allocation of Cost and Workpaper Entries at Date of
Acquisition LO 2
On January...
EXERCISE 5-4 Allocation of Cost and Workpaper Entries at Date of
Acquisition LO 2
On January 1, 2020, Porter Company purchased an 80% interest in
Salem Company for $260,000. On this date, Salem Company had common
stock of $207,000 and retained earnings of $130,500. An examination
of Salem Company’s balance sheet revealed the following comparisons
between book and fair values: Book Value Fair Value Inventory $
30,000 $ 35,000 Other current assets 50,000 55,000 Equipment
300,000 350,000 Land 200,000 200,000...
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...
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...
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...
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...
Parry Corporation acquired a 100% interest in Sent Company on
January 1, 2011, paying $139,100. Financial...
Parry Corporation acquired a 100% interest in Sent Company on
January 1, 2011, paying $139,100. Financial statement data for the
two companies for the year ended December 31, 2011 follow:
Income Statement
Parry
Sent
Sales
$478,800
$153,700
Cost of goods sold
285,700
120,600
Other expense
45,600
29,500
Dividend income
3,400
—0—
Retained Earnings
Statement
Balance, 1/1
75,400
19,300
Net income
150,900
3,600
Dividends declared
17,500
3,400
Balance Sheet
Cash
84,400
29,300
Accounts receivable
76,200
56,300
Inventory
49,900
36,400
Investment in...
I just Don't understand part b
Exercise 4-9
On October 1, 2015, Para Company purchased 90%...
I just Don't understand part b
Exercise 4-9
On October 1, 2015, Para Company purchased 90% of the outstanding
common stock of Star Company for $229,200. Additional data
concerning Star Company for 2015 follows:
Common stock
$76,500
Other contributed capital
29,900
Retained earnings, 1/1
72,100
Net income
55,800
Dividends declared and paid (12/15)
10,400
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...
Phone Corporation acquired 70 percent of Smart Corporation’s
common stock on December 31, 20X4, for $93,800....
Phone Corporation acquired 70 percent of Smart Corporation’s
common stock on December 31, 20X4, for $93,800. At that date, the
fair value of the noncontrolling interest was $40,200. Data from
the balance sheets of the two companies included the following
amounts as of the date of acquisition:
Phone
Smart
Item
Corporation
Corporation
Cash
$
59,300
$
24,000
Accounts Receivable
91,000
53,000
Inventory
130,000
78,000
Land
62,000
39,000
Buildings & Equipment
410,000
253,000
Less: Accumulated Depreciation
(151,000
)
(74,000
)
Investment...