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A. Record the basic consolidation entry. No A Event 1 Show Transcribed Text A B. Record the excess value (differential) reclassification entry. Common stock Retained earnings Investment in Seer Corporation Goodwill Investment in Seer Corporation B Event 2 Answer is not complete. Accounts Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit 000** Debit 120,000✔ 240,000✔ 116,000 X 33,000 X Credit 390,000 119,000 X

A. Record the basic consolidation entry. No A Event 1 Show Transcribed Text A B. Record the excess value (differential) reclassification entry. Common stock Retained earnings Investment in Seer Corporation Goodwill Investment in Seer Corporation B Event 2 Answer is not complete. Accounts Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit 000** Debit 120,000✔ 240,000✔ 116,000 X 33,000 X Credit 390,000 119,000 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A. Record the basic consolidation entry. No A Event 1 Show Transcribed Text A B. Record the excess value (differential) reclassification entry. Common stock Retained earnings Investment in Seer Corporation Goodwill Investment in Seer Corporation B Event 2 X Answer is not complete. Accounts Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit ✓ ✓ x Debit 120,000✔ 240,000✔ 116,000 X 33,000 X Credit 390,000 119,000 X
Transcribed Image Text:A. Record the basic consolidation entry. No A Event 1 Show Transcribed Text A B. Record the excess value (differential) reclassification entry. Common stock Retained earnings Investment in Seer Corporation Goodwill Investment in Seer Corporation B Event 2 X Answer is not complete. Accounts Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Accounts Debit Credit ✓ ✓ x Debit 120,000✔ 240,000✔ 116,000 X 33,000 X Credit 390,000 119,000 X
Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following: Assets Current Assets Long-Term Assets (net) Total $ 220,000 420,000 $ 640,000 Liabilities Current Liabilities Long-Term Liabilities Common Stock Retained Earnings Total $ 80,000 200,000 120,000 240,000 $ 640,000 At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date. Required: Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Transcribed Image Text:Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following: Assets Current Assets Long-Term Assets (net) Total $ 220,000 420,000 $ 640,000 Liabilities Current Liabilities Long-Term Liabilities Common Stock Retained Earnings Total $ 80,000 200,000 120,000 240,000 $ 640,000 At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date. Required: Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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