Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 $80,000 40,000 100,000 200,000 292,000 $ 712,000 Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 $10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: Prepare a consolidated balance sheet worksheet as of December 31, 20X3.
Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 $80,000 40,000 100,000 200,000 292,000 $ 712,000 Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 $10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: Prepare a consolidated balance sheet worksheet as of December 31, 20X3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. The balance sheets of the two
companies on December 31, 20X3, showed the following amounts:
Cash
Accounts Receivable
Land
Buildings and Equipment
Less: Accumulated Depreciation
Investment in Sawmill Corporation
Accounts Payable
Taxes Payable
Notes Payable
Common Stock
Retained Earnings
Powder
Company
$ 30,000
100,000
60,000
500,000
(230,000)
252,000
$ 712,000
$ 80,000
40,000
100,000
200,000
292,000
$ 712,000
Sawmill
Corporation
$ 20,000
40,000
50,000
350,000
(75,000)
$385,000
$ 10,000
70,000
85,000
100,000
120,000
$385,000
Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying
book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume
Sawmill's accumulated depreciation on the acquisition date was $25,000.
Required:
Prepare a consolidated balance sheet worksheet as of December 31, 20X3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3d70eb2-0bff-4bf3-b42a-843fea7a46f1%2Ff656ec8d-9118-4793-9d29-aae0e8ad0eed%2Fqaicj2q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. The balance sheets of the two
companies on December 31, 20X3, showed the following amounts:
Cash
Accounts Receivable
Land
Buildings and Equipment
Less: Accumulated Depreciation
Investment in Sawmill Corporation
Accounts Payable
Taxes Payable
Notes Payable
Common Stock
Retained Earnings
Powder
Company
$ 30,000
100,000
60,000
500,000
(230,000)
252,000
$ 712,000
$ 80,000
40,000
100,000
200,000
292,000
$ 712,000
Sawmill
Corporation
$ 20,000
40,000
50,000
350,000
(75,000)
$385,000
$ 10,000
70,000
85,000
100,000
120,000
$385,000
Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying
book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume
Sawmill's accumulated depreciation on the acquisition date was $25,000.
Required:
Prepare a consolidated balance sheet worksheet as of December 31, 20X3.
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