Matthews Company obtained all of the common stock of Jackson Company on January 1, 20X1. As of that date, Jackson had the following trial balance: Debit Credit Totals $720,000 $720,000 Accounts Payable $60,000 Accounts Receivable $50,000 Additional Paid-in Capital $60,000 Buildings, net (10-year life) $140,000 Cash $70,000 Common Stock $300,000 Equipment, net (8-year life) $240,000 Inventory $110,000 Land $90,000 Long-term Liabilities $180,000 Retained Earnings $120,000 Supplies $20,000 Any excess of cost over fair value is due to an unamortized patent (NOT goodwill) to be amortized over 10 years. During 20X1, Jackson reported net income of $96,000 while paying dividends of $12,000. During 20X2, Jackson reported net income of $132,000 while paying $36,000 in dividends. Assume that Matthews Co. acquired Jackson Co.’s common stock for $588,000 in cash. As of January 1, 20X1, Jackson’s land had a fair market value of $102,000, its buildings were valued at $188,000, and its equipment appraised at $216,000. Matthews internally accounted for this acquisition using the equity method. Requirements: Prepare consolidation worksheet entries S, A, I, D, and E for December 31, 20X1 and December 31, 20X2.
Matthews Company obtained all of the common stock of Jackson Company on January 1, 20X1. As of that date, Jackson had the following
Requirements:
Prepare consolidation worksheet entries S, A, I, D, and E for December 31, 20X1 and December 31, 20X2.
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