16 On January 1, 2019, Aronsen Company acquired 90 percent of Siedel Company's outstanding shares. Siedel had a net book value on that date of $536,700: common stock ($10 par value) of $217,500 and retained earnings of $319,200. nts Aronsen paid $621,900 for this investment. The acquisition-date fair value of the 10 percent noncontrolling interest was $69,100. The excess fair value over book value associated with the acquisition was used to increase land by $73,180 and to recognize copyrights (16-year remaining life) at $81,120. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account. In the 2019-2020 period, the subsidiary's retained earnings increased by $101,400. During 2021, Siedel earned income of $83,500 while declaring $20,700 in dividends. Also, at the beginning of 2021, Siedel issued 4,350 new shares of common stock for $38 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry. Prepare the appropriate 2021 consolidation entries for these two companies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 2 3 4 5 6 Transaction 1 2 3 4 5 6 Answer is not complete. Accounts Investment in Siedel Retained earnings (Aronsen) Investment in Siedel Additional paid-in capital (Aronsen) Common stock (Siedel) Additional paid-in capital (Siedel) Retained eamings (Siedel) Investment in Siedel Noncontrolling interest in Siedel Land Copyrights Investment in Siedel Noncontrolling interest in Siedel Dividend income Dividends declared Amortization expense Copyrights › › ♥ 10000 0000 00 00 Debit 106,200 SHORTS 3,400 20,700 O Credit 106,200 20,700
16 On January 1, 2019, Aronsen Company acquired 90 percent of Siedel Company's outstanding shares. Siedel had a net book value on that date of $536,700: common stock ($10 par value) of $217,500 and retained earnings of $319,200. nts Aronsen paid $621,900 for this investment. The acquisition-date fair value of the 10 percent noncontrolling interest was $69,100. The excess fair value over book value associated with the acquisition was used to increase land by $73,180 and to recognize copyrights (16-year remaining life) at $81,120. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account. In the 2019-2020 period, the subsidiary's retained earnings increased by $101,400. During 2021, Siedel earned income of $83,500 while declaring $20,700 in dividends. Also, at the beginning of 2021, Siedel issued 4,350 new shares of common stock for $38 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry. Prepare the appropriate 2021 consolidation entries for these two companies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 2 3 4 5 6 Transaction 1 2 3 4 5 6 Answer is not complete. Accounts Investment in Siedel Retained earnings (Aronsen) Investment in Siedel Additional paid-in capital (Aronsen) Common stock (Siedel) Additional paid-in capital (Siedel) Retained eamings (Siedel) Investment in Siedel Noncontrolling interest in Siedel Land Copyrights Investment in Siedel Noncontrolling interest in Siedel Dividend income Dividends declared Amortization expense Copyrights › › ♥ 10000 0000 00 00 Debit 106,200 SHORTS 3,400 20,700 O Credit 106,200 20,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D2.
Transcribed Image Text:16
On January 1, 2019, Aronsen Company acquired 90 percent of Siedel Company's outstanding shares. Siedel had a net book value on
that date of $536,700: common stock ($10 par value) of $217,500 and retained earnings of $319,200.
ants
Aronsen paid $621,900 for this investment. The acquisition-date fair value of the 10 percent noncontrolling interest was $69,100. The
excess fair value over book value associated with the acquisition was used to increase land by $73,180 and to recognize copyrights
(16-year remaining life) at $81,120. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account.
In the 2019-2020 period, the subsidiary's retained earnings increased by $101,400. During 2021, Siedel earned income of $83,500
while declaring $20,700 in dividends. Also, at the beginning of 2021, Siedel issued 4,350 new shares of common stock for $38 per
share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded
no entry.
Prepare the appropriate 2021 consolidation entries for these two companies. (If no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
No Transaction
1
1
2
3
4
5
6
2
3
4
5
6
Investment in Siedel
Retained earnings (Aronsen)
Investment in Siedel
Additional paid-in capital (Aronsen)
Answer is not complete.
Accounts
Common stock (Siedel)
Additional paid-in capital (Siedel)
Retained earings (Siedel)
Investment in Siedel
Noncontrolling interest in Siedel
Land
Copyrights
Investment in Siedel
Noncontrolling interest in Siedel
Dividend income
Dividends declared
Amortization expense
Copyrights
✔
› ›
✪
00000
0000
**
00
Debit
106,200
3,400
20,700
Credit
106,200
20,700
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