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Current assets Property, plant and equipment Intangible assets Goodwill Total assets Current liabilities Noncurrent liabilities Total liabilities Capital stock Retained earnings Treasury stock Accumulated other comprehensive loss Total equity Total liabilities and equity Required Note: Provide all answers in millions. Fair Book Value Value $1.973 $1,912 1.087 563 764 8,083 3.948 1998 827 1.891 2.559 2.889 1.712 1,317 (1.946) (29) €76 ES 7501 a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. To record the acquisition Debit Credit 0 0 0 0X b. Prepare consolidation working paper eliminating entries (E) and (R) to consolidate the accounts of IBM and Red Hat at the date of acquisition. (E) Debit Credit 0 0 0 0 M 0 To eliminate Red Hat's equity accounts against investment account (R) 0 0% 0 0% 0 0 M 0 0x 0 0 0 0* 0 0% To revalue Bay's assets and liabilities to fair value Check

Current assets Property, plant and equipment Intangible assets Goodwill Total assets Current liabilities Noncurrent liabilities Total liabilities Capital stock Retained earnings Treasury stock Accumulated other comprehensive loss Total equity Total liabilities and equity Required Note: Provide all answers in millions. Fair Book Value Value $1.973 $1,912 1.087 563 764 8,083 3.948 1998 827 1.891 2.559 2.889 1.712 1,317 (1.946) (29) €76 ES 7501 a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. To record the acquisition Debit Credit 0 0 0 0X b. Prepare consolidation working paper eliminating entries (E) and (R) to consolidate the accounts of IBM and Red Hat at the date of acquisition. (E) Debit Credit 0 0 0 0 M 0 To eliminate Red Hat's equity accounts against investment account (R) 0 0% 0 0% 0 0 M 0 0x 0 0 0 0* 0 0% To revalue Bay's assets and liabilities to fair value Check

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current assets Property, plant and equipment Intangible assets Goodwill Total assets Current liabilities Noncurrent liabilities Total liabilities Capital stock Retained earnings Treasury stock Accumulated other comprehensive loss Total equity Total liabilities and equity Required Note: Provide all answers in millions. Fair Book Value Value $1.973 $1,912 1.087 563 764 8,083 3.948 1998 827 1.891 2.559 2.889 1.712 1,317 (1.946) (29) €76 ES 7501 a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. To record the acquisition Debit Credit 0 0 0 0X b. Prepare consolidation working paper eliminating entries (E) and (R) to consolidate the accounts of IBM and Red Hat at the date of acquisition. (E) Debit Credit 0 0 0 0 M 0 To eliminate Red Hat's equity accounts against investment account (R) 0 0% 0 0% 0 0 M 0 0x 0 0 0 0* 0 0% To revalue Bay's assets and liabilities to fair value Check
Transcribed Image Text:Current assets Property, plant and equipment Intangible assets Goodwill Total assets Current liabilities Noncurrent liabilities Total liabilities Capital stock Retained earnings Treasury stock Accumulated other comprehensive loss Total equity Total liabilities and equity Required Note: Provide all answers in millions. Fair Book Value Value $1.973 $1,912 1.087 563 764 8,083 3.948 1998 827 1.891 2.559 2.889 1.712 1,317 (1.946) (29) €76 ES 7501 a. Prepare IBM's journal entry or entries to record the stock acquisition on its own books. To record the acquisition Debit Credit 0 0 0 0X b. Prepare consolidation working paper eliminating entries (E) and (R) to consolidate the accounts of IBM and Red Hat at the date of acquisition. (E) Debit Credit 0 0 0 0 M 0 To eliminate Red Hat's equity accounts against investment account (R) 0 0% 0 0% 0 0 M 0 0x 0 0 0 0* 0 0% To revalue Bay's assets and liabilities to fair value Check
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