n May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working pape

Q: Oriole Company acquired an 80% interest in the common stock of Sunland Company for $1,540,400 on…

A: Non controlling interest % = Total interest - Controlling interest = 100% - 80% = 20%

Q: Amount to be shown as consolidated net income? Net income attributable to owners of the parent?…

A: The acquisition means the take over of a major portion of a business by another business to gain…

Q: Assume that both the Parent and Subsidiary adopt 31 December as their financial year-end. Further…

A: SUBSIDIARY BOOKS-       DATE         PARTICULARS        DEBIT $   CREDIT $ 20-DEC-1.   Cash…

Q: gain or loss on disposal of Entity P's share?

A: Proceeds from disposal  Add: Fair value of investment retained  Add: Carrying Value of Non…

Q: the parent.

A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

Q: What amount of non-controlling interest is to be presented in the consolidated statement of…

A: Non-controlling interest is also termed as minority interest which shall refer to those…

Q: a. Prepare all consolidation entries needed to complete a consolidated balance sheet worksheet as of…

A: Consolidation is the process of combining the financial statements of Parent Company and the…

Q: Prepare the worksheet for consolidation purposes and the related eliminating entries on January 1,…

A: The acquisition is a process in which a company acquires the controlling stakes of another company…

Q: The separate balance sheets of Painter Corporation and Sawyer Company following their business…

A: Step 1: Consolidated Balance sheet for Painter Corporation and its subsidiary on May 31, 2005 :…

Q: Required a) Prepare the consolidated income statement of Makwebo Ltd and its subsidiaries for the…

A: Consolidated income statement of Makwebo Ltd for the year ended 30th June 2006       Particulars…

Q: Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming…

A: In parent company concept, non controlling interest will be calculated on net assets of the company…

Q: Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31,…

A: In the context of the given question, we are required to prepare journal entries and a consolidated…

Q: 7. What amount of non-controlling interest is to be presented in the consolidated statement of…

A: Retained Earnings:- Retained earnings are considered as the part of profit, that is not distributed…

Q: n 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The…

A: Consolidation - Accounting's consolidation procedure combines the mother branch's finances with…

Q: , C, and D are companies to be combined. Just prior to the combination, their individual…

A: Concept of companies account

Q: On May 1, 2021, Caprisun Inc acquired most of the outstanding shares of Cancer Co for cash. The…

A: Consolidation is termed as merger of two or more entities where one company acquire more than 50% of…

Q: On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for…

A: Non-controlling interest is also termed as minority interest which shall refer to those…

Q: On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The…

A: The power premium is the difference between the pro-rata controlling and non-controlling interests.…

Q: Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity…

A: A popular indicator for determining corporate value is earnings per share, which shows how much…

Q: 1.How much is the goodwill to be reported on the consolidated balance sheet on January 1, 2x19?…

A: Goodwill = Purchase Consideration + Non controlling Interest - Net Identifiable Assets…

Q: On February 1, 20x21, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The…

A: Control premium: Control premium refers to a sum that the buyer will pay over the honest assessment…

Q: On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete…

A: Goodwill is the intangible asset that is reported on the balance sheet of the company. It shows the…

Q: Prepare the set of consolidated financial statement of financial position on the date of acquisition…

A: Consolidated financial statements comprise of the group financial statements in which the…

Q: Pinnacle Corporation acquired all of Stengl Corporation's common stock by issuing 500,000 shares of…

A: A general journal is defined as a book in which the raw data pertaining to the transactions or…

Q: Accounting for Business Combinations: The trial balance of Honesty Company at December 31, 2022, a…

A: If the financial statement of a subsidiary is not represented in the home currency and the foreign…

Q: On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The…

A: A controlling interest inside a corporation seems to be an ownership interest inside a corporation…

Q: For the year ended December 31, the following results were given:…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: Parent Ltd (Parent) controls a subsidiary Sub Ltd (Sub), in which it owns 70 per cent of the issued…

A: Consolidation- Consolidation is a statutory process in which different business entities join forces…

Q: The parent acquired 75% of the ordinary shares of Sub with acquired control. The summarized…

A: On preparing consolidated financial statements, the inter party transactions must be eliminated.

Q: On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned…

A: Consolidated retained earnings: The consolidated retained earnings refer to the parent company's…

Q: 1) The working paper eliminating entry recorded by Acquired Company on January 1, 20x7, the date of…

A: A company that has significant influence in another company’s voting stock is known as the Holding…

Q: P Corporation, a publicly-listed company, acquired S Company, a privately-owned company, on…

A: The acquisition by entity P of entity S is a reverse acquisition because the entity S shares and…

Q: Almond acquires 80% of the share capital of Cashew on 1 August 20X6 and is preparing its group…

A: For the purpose of preparation of consolidated statement of financial position, the assets and…

Q: ets was $2,100,000, ontrolling interest shares of llar amount of noncontrollir

A: Amount of non controlling interest that should appear in consolidate balance sheet =…

Q: Stick Corporation is a wholly owned subsidiary of Point Corporation. Point acquired ownership of…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for…

A: Consolidated financial statements:- Consolidated financial statements are the statements of group in…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.