Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2022, for $693,000 cash. Greenburg's accounting records showed net assets on that date of $558,000, although equipment with a 10-year remaining life was undervalued on the records by $71,500. Greenburg reports net income in 2022 of $97,000 and $135,500 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Revenues Cost of goods sold Depreciation expense Investment income Items Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities Common stock Retained earnings Total liabilities and equity Foxx $ (860,000) 107,500 348,000 (20,000) $ (424,500) $ (1,218,000) (424,500) 120,000 $ (1,522,500) $325,000 693,000 1,054,000 826,000 666,000 $ 3,564,000 $ (1,141,500) (900,000) (1,522,500) $ (3,564,000) Greenburg $(776,000) 194,000 375,000 0 $ (207,000) $ (450,500) (207,000) 20,000 $ (637,500) $ 161,000 e 634,000 588,000 145,000 $ 1,528,000 $ (590,500) (300,000) (637,500) $ (1,528,000)
Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2022, for $693,000 cash. Greenburg's accounting records showed net assets on that date of $558,000, although equipment with a 10-year remaining life was undervalued on the records by $71,500. Greenburg reports net income in 2022 of $97,000 and $135,500 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Revenues Cost of goods sold Depreciation expense Investment income Items Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities Common stock Retained earnings Total liabilities and equity Foxx $ (860,000) 107,500 348,000 (20,000) $ (424,500) $ (1,218,000) (424,500) 120,000 $ (1,522,500) $325,000 693,000 1,054,000 826,000 666,000 $ 3,564,000 $ (1,141,500) (900,000) (1,522,500) $ (3,564,000) Greenburg $(776,000) 194,000 375,000 0 $ (207,000) $ (450,500) (207,000) 20,000 $ (637,500) $ 161,000 e 634,000 588,000 145,000 $ 1,528,000 $ (590,500) (300,000) (637,500) $ (1,528,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req B and C Req D and E
Determine the December 31, 2024, consolidated balance for each of the following accounts.
Note: Input all amount as positive values.
Req A
Depreciation expense
Dividends declared
Revenues
Equipment
Buildings
Goodwill
Common stock
Consolidated
Balances
< Req A
Req B and C >
Transcribed Image Text:Problem 3-24 (Algo) (LO 3-2, 3-3, 3-4)
Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2022, for $693,000 cash. Greenburg's
accounting records showed net assets on that date of $558,000, although equipment with a 10-year remaining life was undervalued
on the records by $71,500.
Greenburg reports net income in 2022 of $97,000 and $135,500 in 2023. The subsidiary declared dividends of $20,000 in each of
these two years.
Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses.
Revenues
Cost of goods sold
Depreciation expense
Investment income
Net income
Retained earnings, 1/1/24
Net income
Dividends declared
Retained earnings, 12/31/24
Items
Current assets
Investment in subsidiary
Equipment (net)
Buildings (net)
Land
Total assets
Liabilities
Common stock
Retained earnings
Total liabilities and equity
Required:
Foxx
$ (860,000)
107,500
348,000
(20,000)
$ (424,500)
$ (1,218,000)
(424,500)
120,000
$ (1,522,500)
$ 325,000
693,000
1,054,000
826,000
666,000
$ 3,564,000
$ (1,141,500)
(900,000)
(1,522,500)
$ (3,564,000)
Greenburg
$ (776,000)
194,000
375,000
0
$ (207,000)
$ (450,500)
(207,000)
20,000
$ (637,500)
$ 161,000
0
634,000
588,000
145,000
$ 1,528,000
$ (590,500)
(300,000)
(637,500)
$ (1,528,000)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education