A. Find Investment Balance 12/31/21B. Consolidation Worksheet Entries -Prepare Entry *G-Prepare Entry S-Prepare Entry A-Prepare Entry I-Prepare Entry D-Prepare Entry E-Prepare Entry TI-Prepare Entry G # Problem 5-18 (Algo) (LO 5-3, 5-4, 5-5)On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $750,000, retained earnings of $300,000, and a controlling interest fair value of $360,000. Corgan attributed the excess of fair value over Smashing’s book value to various contracts with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.During the next two years, Smashing reported the following:| Year | Net Income | Dividends Declared | Inventory Purchases from Corgan ||------|------------|---------------------|----------------------------------|| 2020 | $200,000 | $40,000 | $150,000 || 2021 | $180,000 | $50,000 | $80,000 |Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 40 percent of the current year purchases remain in Smashing’s inventory.**Questions:**a. Compute the equity method balance in Corgan’s Investment in Smashing, Inc., account as of December 31, 2021.b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing.Complete this question by entering your answers in the tabs below.---*Note: The table summarizes Smashing Inc.'s financial performance over two years, including net income, dividends declared, and purchases from Corgan. This data is crucial for calculating Corgan's investment balance and preparing necessary adjustments.*

Acqusition While in the process of Acqusition more than 50% of shares which are acquired by the…

Find Investment Balance 12/31/21 B. Consolidation Worksheet Entries -Prepare Entry *G -Prepare Entry S -Prepare Entry A -Prepare Entry I -Prepare Entry D -Prepare Entry E -Prepare Entry TI -Prepare Entry G

Find Investment Balance 12/31/21 B. Consolidation Worksheet Entries -Prepare Entry *G -Prepare Entry S -Prepare Entry A -Prepare Entry I -Prepare Entry D -Prepare Entry E -Prepare Entry TI -Prepare Entry G

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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EVALUATION V Differentiate General Ledger from a Subsidiary Ledger V Differentiate General Journal from a General Ledger 6 | Page
Subject:accounting
View History Bookmarks Window Help A education.wiley Exam 1 WP NWP Assessment Player UI Application Question 20 of 42 View Policies Current Attempt in Progress The usual sequence of steps in the transaction recording process is: journal ledger → analyze. analyze journal ledger. journal analyze ledger. ledger journal → analyze. Save for Later
Pumpkin Ltd. received the following information from its pension plan trustee concerning their defined benefit pension plan for the year ended December 31, 2020: December 31, 2020 $3,500,000 Defined benefit obligation Fair value of plan assets 1,750,000 For 2020, the service cost is $210,000 and past service cost (effective Jan 1, 2020) is $100,000. During 2020, Pumpkin contributed $595,000 to the plan, and paid 89,000 to the retirees throughout the year. The actual return of the plan assets is $90,000. The company was also informed by the consulting firm that an actuarial gain of $750 should be reported. Pumpkin uses discount rates of 6%. Pumpkin uses the immediate recognition approach under IFRS. Instructions Please calculate Pumpkin's DBO and Plan Assets ending balance and net defined pension asset/liability by completing the following worksheet. No separate journal entry necessary.
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