ABC Company on March 1 acquired 8,000 shares of XYZ Company at a price of $165,000 paid per cash. Each company has 10,000 shares outstanding. The estimated balances of the two companies as of this date are as follows. ABC Company XYZ Company Assets $820,000 $210,000 Liabilities $200,000 $60,000 Capital Stock $400,000 $100,000 Additional paid in capital $100,000 $20,000 Retained Earning $120,000 $30,000 Total Liabilites + Equity $820,000 $210,000 XYZ Company's assets are understated by $45,000. Prepare a consolidated balance sheet.
ABC Company on March 1 acquired 8,000 shares of XYZ Company at a price of $165,000 paid per cash. Each company has 10,000 shares outstanding. The estimated balances of the two companies as of this date are as follows. ABC Company XYZ Company Assets $820,000 $210,000 Liabilities $200,000 $60,000 Capital Stock $400,000 $100,000 Additional paid in capital $100,000 $20,000 Retained Earning $120,000 $30,000 Total Liabilites + Equity $820,000 $210,000 XYZ Company's assets are understated by $45,000. Prepare a consolidated balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC Company on March 1 acquired 8,000 shares of XYZ Company at a price of $165,000 paid per cash. Each company has 10,000 shares outstanding. The estimated balances of the two companies as of this date are as follows.
|
|
ABC Company |
XYZ Company |
|
Assets |
$820,000 |
$210,000 |
|
Liabilities |
$200,000 |
$60,000 |
|
Capital Stock |
$400,000 |
$100,000 |
|
Additional paid in capital |
$100,000 |
$20,000 |
|
|
$120,000 |
$30,000 |
|
Total Liabilites + Equity |
$820,000 |
$210,000 |
XYZ Company's assets are understated by $45,000. Prepare a consolidated balance sheet.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education