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
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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
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