Homework Help is Here – Start Your Trial Now!
Business
Accounting
Name: De e: Destiny Ehirim On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of totaled $290,000 both before and after Truman's acquisition. $720,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2024. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Items Operating expenses Income of subsidiary Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Truman Atlanta $ (670,000) $ (400,000) 280,000 402,000 (35,000) $ (303,000) $ (823,000) (303,000) 145,000 $ (981,000) $ 481,000 727,000 388,000 0 $ (120,000) $ (500,000) (120,000) 80,000 $ (540,000) $ 390,000 0 701,000 $ 2,297,000 $ (816,000) (95,000) (405,000) 200,000 630,000 $ 1,220,000 $ (360,000) (300,000) Additional paid-in capital (20,000) Retained earnings, 12/31/24 (981,000) (540,000) Total liabilities and stockholders' equity $(2,297,000) $(1,220,000) Required: Prepare consolidation journal entries to be posted to the consolidation worksheet.

Name: De e: Destiny Ehirim On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of totaled $290,000 both before and after Truman's acquisition. $720,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2024. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Items Operating expenses Income of subsidiary Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Truman Atlanta $ (670,000) $ (400,000) 280,000 402,000 (35,000) $ (303,000) $ (823,000) (303,000) 145,000 $ (981,000) $ 481,000 727,000 388,000 0 $ (120,000) $ (500,000) (120,000) 80,000 $ (540,000) $ 390,000 0 701,000 $ 2,297,000 $ (816,000) (95,000) (405,000) 200,000 630,000 $ 1,220,000 $ (360,000) (300,000) Additional paid-in capital (20,000) Retained earnings, 12/31/24 (981,000) (540,000) Total liabilities and stockholders' equity $(2,297,000) $(1,220,000) Required: Prepare consolidation journal entries to be posted to the consolidation worksheet.

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
See similar textbooks
icon
Related questions
Question
Name: De e: Destiny Ehirim On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of totaled $290,000 both before and after Truman's acquisition. $720,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2024. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Items Operating expenses Income of subsidiary Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Truman Atlanta $ (670,000) $ (400,000) 280,000 402,000 (35,000) $ (303,000) $ (823,000) (303,000) 145,000 $ (981,000) $ 481,000 727,000 388,000 0 $ (120,000) $ (500,000) (120,000) 80,000 $ (540,000) $ 390,000 0 701,000 $ 2,297,000 $ (816,000) (95,000) (405,000) 200,000 630,000 $ 1,220,000 $ (360,000) (300,000) Additional paid-in capital (20,000) Retained earnings, 12/31/24 (981,000) (540,000) Total liabilities and stockholders' equity $(2,297,000) $(1,220,000) Required: Prepare consolidation journal entries to be posted to the consolidation worksheet.
Transcribed Image Text:Name: De e: Destiny Ehirim On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of totaled $290,000 both before and after Truman's acquisition. $720,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that In reviewing its acquisition, Truman assigned a $100,000 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2024. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Items Operating expenses Income of subsidiary Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Truman Atlanta $ (670,000) $ (400,000) 280,000 402,000 (35,000) $ (303,000) $ (823,000) (303,000) 145,000 $ (981,000) $ 481,000 727,000 388,000 0 $ (120,000) $ (500,000) (120,000) 80,000 $ (540,000) $ 390,000 0 701,000 $ 2,297,000 $ (816,000) (95,000) (405,000) 200,000 630,000 $ 1,220,000 $ (360,000) (300,000) Additional paid-in capital (20,000) Retained earnings, 12/31/24 (981,000) (540,000) Total liabilities and stockholders' equity $(2,297,000) $(1,220,000) Required: Prepare consolidation journal entries to be posted to the consolidation worksheet.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS