Homework Help is Here – Start Your Trial Now!
Business
Accounting
Debit FC Balances Credit FC Balances Current assets .. Depreciable assets (net). Other assets..... Cost of sales. .. Other expenses . 250,000 350,000 125,000 Capital stock ... Retained earnings Sales ... Accounts payable . Other liabilities . 166,000 194,000 140,000 134,000 720,000 504,000 125,000 Total... 1,354,000 Total.... 1,354,000 Prefabco had net income and dividends, declared at year-end and paid in the first quarter of the next year, subsequent to Techno's acquisition as follows along with selected rates of exchange: Average Dollar /FC Year-end Net Income Dividends Dollar/FC Last 9 months of 2013. 72,000 91,500 126,000 2.18 240,000 305,000 2.10 2014... 2.25 2.21 2015.... 420,000 2.34 2.40

Debit FC Balances Credit FC Balances Current assets .. Depreciable assets (net). Other assets..... Cost of sales. .. Other expenses . 250,000 350,000 125,000 Capital stock ... Retained earnings Sales ... Accounts payable . Other liabilities . 166,000 194,000 140,000 134,000 720,000 504,000 125,000 Total... 1,354,000 Total.... 1,354,000 Prefabco had net income and dividends, declared at year-end and paid in the first quarter of the next year, subsequent to Techno's acquisition as follows along with selected rates of exchange: Average Dollar /FC Year-end Net Income Dividends Dollar/FC Last 9 months of 2013. 72,000 91,500 126,000 2.18 240,000 305,000 2.10 2014... 2.25 2.21 2015.... 420,000 2.34 2.40

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Techno Builders has acquired a 70% interest in the equity of a foreign company, Prefabco, whose functional currency is the FC. Although Prefabco began operations in June 2012 when 1 FC equaled $1.95, Techno did not acquire its interest until March 31, 2013, when 1 FC equaled $2.08. Techno paid 400,000 FC for its interest in Prefabco when the subsidiary’s condensed preclosing trial balance was as follows:(attached)

Prepare a schedule to determine the balance in Techno’s account ‘‘Investment in Prefabco’’ as of year-end 2015 and also prepare all of the entries that would be necessary to eliminate the investment account in a worksheet to consolidate the parent company and its subsidiary for the year 2015. Techno uses the simple equity method to account for its interest in the subsidiary.

Debit FC Balances Credit FC Balances Current assets .. Depreciable assets (net). Other assets..... Cost of sales. .. Other expenses . 250,000 350,000 125,000 Capital stock ... Retained earnings Sales ... Accounts payable . Other liabilities . 166,000 194,000 140,000 134,000 720,000 504,000 125,000 Total... 1,354,000 Total.... 1,354,000 Prefabco had net income and dividends, declared at year-end and paid in the first quarter of the next year, subsequent to Techno's acquisition as follows along with selected rates of exchange: Average Dollar /FC Year-end Net Income Dividends Dollar/FC Last 9 months of 2013. 72,000 91,500 126,000 2.18 240,000 305,000 2.10 2014... 2.25 2.21 2015.... 420,000 2.34 2.40
Transcribed Image Text:Debit FC Balances Credit FC Balances Current assets .. Depreciable assets (net). Other assets..... Cost of sales. .. Other expenses . 250,000 350,000 125,000 Capital stock ... Retained earnings Sales ... Accounts payable . Other liabilities . 166,000 194,000 140,000 134,000 720,000 504,000 125,000 Total... 1,354,000 Total.... 1,354,000 Prefabco had net income and dividends, declared at year-end and paid in the first quarter of the next year, subsequent to Techno's acquisition as follows along with selected rates of exchange: Average Dollar /FC Year-end Net Income Dividends Dollar/FC Last 9 months of 2013. 72,000 91,500 126,000 2.18 240,000 305,000 2.10 2014... 2.25 2.21 2015.... 420,000 2.34 2.40
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS