Consolidated Statement of financial position Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC's assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC Johnson PLC | Steven PLC Book Value 300,000 400,000 Fair Value 300,000 390,000 Cash Accounts receivable, net Dividend's receivable Equipment-net 1,000,000 Building-net Land Investment in David PLC |Total Assets Accounts payable Dividends payable Notes payable 1,000,000 Capital stock Retained earnings Total liabilities 7,780,000 80,000 200,000 160,000 160,000 -0- 2,000,000 1,600,000 1,200,000 2,500,000 1,800,000 800,000 1,000,000 1,400,000 -0- 7,780,000 | 500,000 8,670,000 | 500,000 3,480,000 80,000 100,000 100,000 200,000 400,000 1,000,000 1,800,000 1,000,000 2,000,000 4,180,000 3,480,000 and equity Johnson PLC accounts payable includes $100,000 owed to Steven PLC.Required: 1. Prepare consolidated balance sheet Johnson PLC and Subsidiary at December 31, 2020. 2. Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary atDecember 31, 2020. 3. Prepare the elimination entries for the group at December 31, 2020.
Consolidated Statement of financial position Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC's assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC Johnson PLC | Steven PLC Book Value 300,000 400,000 Fair Value 300,000 390,000 Cash Accounts receivable, net Dividend's receivable Equipment-net 1,000,000 Building-net Land Investment in David PLC |Total Assets Accounts payable Dividends payable Notes payable 1,000,000 Capital stock Retained earnings Total liabilities 7,780,000 80,000 200,000 160,000 160,000 -0- 2,000,000 1,600,000 1,200,000 2,500,000 1,800,000 800,000 1,000,000 1,400,000 -0- 7,780,000 | 500,000 8,670,000 | 500,000 3,480,000 80,000 100,000 100,000 200,000 400,000 1,000,000 1,800,000 1,000,000 2,000,000 4,180,000 3,480,000 and equity Johnson PLC accounts payable includes $100,000 owed to Steven PLC.Required: 1. Prepare consolidated balance sheet Johnson PLC and Subsidiary at December 31, 2020. 2. Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary atDecember 31, 2020. 3. Prepare the elimination entries for the group at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:17:50 M b b •
Assignment 2- BBA
Assignment 2
Consolidated Statement of financial position
Johnson PLC acquires 80 percent of Steven PLC for $2,080,000
on January 1, 2020. The book values of Steven PLC's assets and
liabilities are equal to the fair values which equals $2,500,000.
Steven PLC reports net income of $500,000 during the year.
Dividends of $200,000 are declared by Steven PLC on December
5. These dividends are to be paid next year. The balance sheets
of Johnson PLC and Steven PLC at December 31, 2020 are as
follows:
Johnson PLC
Fair
Value
300,000
390,000
Johnson PLC
Steven PLC
Вook
Value
300,000
400,000
80,000
200,000
Cash
Accounts
receivable,
net
Dividend's
receivable
Equipment-net 1,000,000
Building-net
Land
160,000
160,000
-0-
| 1,200,000
2,500,000
1,800,000
800,000
1,000,000
1,400,000
-0-
2,000,000
1,600,000
Investment in
David
PLC
Total Assets
Accounts
payable
?
7,780,000
500,000
8,670,000
500,000
3,480,000
80,000
Dividends
payable
Notes payable
Capital stock
Retained
earnings
Total liabilities
100,000
100,000
200,000
1,000,000
1,000,000
2,000,000
4,180,000
400.000
1,000,000
1,800,000
7,780,000
3,480,000
and
equity
Johnson PLC accounts payable includes
$100,000 owed to Steven PLC.Required:
1. Prepare consolidated balance sheet Johnson PLC and
Subsidiary at December 31, 2020.
2. Prepare consolidated balance sheet workpapers for
Johnson PLC and Subsidiary atDecember 31, 2020.
3. Prepare the elimination entries for the group at December 31,
2020.
II
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