196,000
Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…
A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…
Q: On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: On January 1, 2024, the Moody Company entered into a transaction for 100% of the outstanding common…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: a. Stayer's building (net of accumulated depreciation). b. Stayer's technology processes (net of…
A: When companies create statements they merge the financial data, from the main company and its…
Q: Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $160,000…
A: The answer is as fallows
Q: Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December…
A: Journal entryThe transactions that a company goes through in its day-to-day activities are recorded…
Q: Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on…
A: Securities available for sale are those debt or equity securities investments made by the company…
Q: On January 1, 2024, Sledge had common stock of $130,000 and retained earnings of $270,000. During…
A: The objective of the question is to prepare the consolidation worksheet entries for Percy, Inc. and…
Q: On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1,…
A: Investment in associates refers to the type of investment that the firm makes in another company…
Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…
A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.
Q: On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason…
A: ConsolidationThe combination of one or two elements is called consolidation. When the companies…
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid…
A: Depreciation Expense: Depreciation expense refers to the systematic allocation of the cost of a…
Q: Heidebrecht Design acquired 25% of the outstanding common stock of Sunland Company on January 1,…
A: Common Stock -A share of ownership in a firm that is designated as common stock may be associated…
Q: Paul Corporation acquired 80 percent of Saul Company on January 1, 2019, by issuing 118,000 shares…
A: Acqusition Cost It may be incurred several cost which are related with the Acqusition cost while…
Q: On January 1, 2023, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of…
A: Fisher Corporation Journal Entries (2023 & 2024)Investment in BowdenJanuary 1, 2023Debit:…
Q: Required: a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2.…
A: a) Computation of goodwill and its allocation:DetailsAmountConsideration transferred by Holland ($8…
Q: Determine the amounts that Marshall Company would report in its postacquisition consolidated balance…
A: Tucker's book valuesAdjusting Tucker's book values for the undervalued accounts:Inventory:…
Q: On January 1, 2023, Procise Corporation acquired 100 percent of the outstanding voting stock of…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: On January 1, 2023, Mona, Incorporated, acquired 80 percent of Lisa Company’s common stock as well…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: a.
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: Consolidation Statement- Consolidated financial statement refers to the financial statement of an…
Q: On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason…
A: Consolidated means combined, hence consolidated financial statements mean the total financial…
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: Introduction: A consolidated balance sheet is prepared that reveals a major company´s financial…
Q: BuyCo, Incorporated, holds 21 percent of the outstanding shares of Marqueen Company and…
A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…
Q: On January 1, 2020, Holland Corporation paid $7 per share to a group of Zeeland Corporation…
A: A consolidation worksheet is a template that is used to create consolidated accounts for a parent…
Q: Sarasota Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December…
A: Solution- Journal entries for Sarasota inc for 2020 and 2021 Assuming that Sarasota can not…
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: The question is based on the concept of Financial Accounting.
Q: Required: a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2.…
A: PartciularsAmountRemaining LifeAmortizationConsideration transferred by…
Q: of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining…
A: Goodwill Calculation and Allocation for Holland's Acquisition of Zeelanda1. Compute the Amount of…
Q: On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…
A: When one company acquires 100% shares of another company i.e takeover the other company by paying a…
Q: Clark Company acquired 15% of the 500,000 shares of common stock of Davis Company at a total cost of…
A: When something happens in a business and it can be quantified and stated in monetary terms, it…
Q: On April 1, 2024, BigBen Company acquired 35% of the shares of LittleTick, Incorporated BigBen paid…
A: net income refers to an amount that is being earned by the investors over the amount of investment…
Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…
A: As Mentioned question number 03 to answer so we are only answering that.
Q: Prepare all of Spark's journal entries for 2024 to apply the equity method to this investment.
A: When the ownership percentage in other company is between 20% to 50%, then equity method of…
Q: On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for…
A: The objective of the question is to prepare the journal entries for Alamar Corporation for the year…
Q: Lamberson Cookie Corporation purchased 40% of the 325,000 outstanding shares of HC's Fine Foods,…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: value and the fair value of John's net assets were $12.900.000 On July 1, 2026 Riverbed paid…
A: Accounting for investments is the process of systematically recording and reporting financial…
Q: iller Company acquired an 80 percent interest in Taylor Company on January 1, 2022. Miller paid…
A: Out of the profit earned by the business entity, some of them are distributed to the shareholders in…
Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…
A: Dividend = Total dividend paid x 36% = $24000 x 36% = $8,640
Q: earnings
A:
Q: On January 1, 2024, Sledge had common stock of $320,000 and retained earnings of $460,000. During…
A: To compute the net income attributable to the noncontrolling interest for 2024, we need to first…
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2022. Miller paid $784,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $196,000 both before and after Miller’s acquisition.
On January 1, 2022, Taylor reported a book value of $768,000 (Common Stock = $384,000; Additional Paid-In Capital = $115,200;
During the next three years, Taylor reports income and declares dividends as follows:
| Year | Net Income | Dividends |
|---|---|---|
| 2022 | $ 90,200 | $ 13,100 |
| 2023 | 117,900 | 19,700 |
| 2024 | 131,300 | 26,300 |
-
If a consolidation worksheet is prepared as of January 1, 2022, what Entry S and Entry A should be included?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $652,000 in cash. Annual excess amortization of $13,700 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $498,000, and Rambis reported a $232,000 balance. Herbert reported internal net income of $44,750 in 2020 and $58,350 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $23,300 in 2020 and $36,900 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert’s internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? Equity method, initial value method and partial…BuyCo, Incorporated, holds 21 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $11,100 per year. For 2023, Marqueen reported earnings of $111,000 and declares cash dividends of $29,000. During that year, Marqueen acquired inventory for $43,000, which it then sold to BuyCo for $86,000. At the end of 2023, BuyCo continued to hold merchandise with a transfer price of $29,000. What Equity in Investee Income should BuyCo report for 2023? How will the intra-entity transfer affect BuyCo’s reporting in 2024? If BuyCo had sold the inventory to Marqueen, would your answers to parts (a) and (b) change?On January 1, 2022, Aronsen Company acquired 90 percent of Sledel Company's outstanding shares. Sledel had a net book value on that date of $450,000: common stock ($12 par value) of $240,000 and retained earnings of $210,000. Aronsen paid $691,200 for this Investment. The acquisition-date fair value of the 10 percent noncontrolling Interest was $76,800. The excess fair value over book value associated with the acquisition was used to increase land by $222,000 and to recognize copyrights (12-year remaining life) at $96,000. Subsequent to the acquisition, Aronsen applied the Initial value method to its Investment account. In the 2022-2023 period, the subsidiary's retained earnings Increased by $230,000. During 2024, Siedel earned Income of $94,000 while declaring $34,000 in dividends. Also, at the beginning of 2024, Siedel Issued 4,000 new shares of common stock for $52 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and…
- On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment 1. Record the acquisition of a 36 percent interest in BurksOn January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $200,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $20 per share. Marshall paid $30,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Company Book Value Tucker Company Book Value Cash $ 60,000 $ 20,000 Receivables 270,000 90,000 Inventory 360,000 140,000 Land…On January 1, 2024, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long- term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Receivables Inventories Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities. Common stock ($1 par) Common stock ($20 par) Additional paid-in capital Retained earnings Note: Parentheses indicate a credit balance. Multiple Choice O $1,760 In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60. Compute the amount of…
- On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets $ $ 16,200 Liabilities Property and equipment (net) Patents 245,000 210,200 Common stock 100,000 218,600 Retained earnings 100,000 $ 445,000 $ 445,000 S On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $45,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $244,800. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's…Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $622,000 in cash. Annual excess amortization of $11,300 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $465,000, an Rambis reported a $211,000 balance. Herbert reported internal net income of $43,500 in 2020 and $56,900 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $22,100 in 2020 and $35,500 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert's internal net income figures above do not include any income from the subsidiary. • If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? • What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is…On January 1, 2018, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Moody Osorio Cash $ 180 $ 40 Receivables 810 180 Inventories 1,080 280 Land 600 360 Buildings (net) 1,260 440 Equipment (net) 480 100 Accounts payable (450 ) (80 ) Long-term liabilities (1,290 ) (400 ) Common stock ($1 par) (330 ) Common stock ($20 par) (240 ) Additional paid-in capital (1,080 ) (340 ) Retained…
- On May 31, 2021, Oriole Company paid $3,675,000 to acquire all of the common stock of Pharoah Corporation, which became a division of Oriole. Pharoah reported the following balance sheet at the time of the acquisition: Current assets $ 945,000 Current liabilities $ 630,000 Noncurrent assets 2,835,000 Long-term liabilities 525,000 Stockholder's equity 2,625,000 Total assets $3,780,000 Total liabilities and stockholder's equity $3,780,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Pharoah was $3,255,000. At December 31, 2021, Pharoah reports the following balance sheet information: Current assets $ 840,000 Noncurrent assets (including goodwill recognized in purchase) 2,520,000 Current liabilities (735,000 ) Long-term liabilities (525,000 ) Net assets $2,100,000 It is determined that the fair value of the Pharoah division is $2,310,000.…On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment 2. Record the 36 percent income earned by Alamar from this investment.On April 1, 2024, BigBen Company acquired 30% of the shares of LittleTick, Incorporated BigBen paid $100,000 for t investment, which is $40,000 more than 30% of the book value of LittleTick's identifiable net assets. BigBen attributer $15,000 of the $40,000 difference to inventory that will be sold in the remainder of 2024, and the rest to goodwill. LittleTick recognized a total of $20,000 of net income for 2024, and paid total dividends for the year of $10,000; these dividends were issued quarterly. BigBen's investment in LittleTick will affect BigBen's 2024 net income by: O a loss of $10,500. earnings of $4,500. earnings of $1,125. earnings of $3,450.
