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On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,017,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,070,000 and Retained Earnings of $53,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $113,000. QuickPort attributed the $6,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following: Net Income $ 9,100 13,000 Dividends Declared $ 1,300 1,300 2020 2021 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $9,500. The equipment originally cost $16,000 and had accumulated depreciation of $7700 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. Investment in NetSpeed, Inc., 12/31/21 < Required A Required B > Consolidation Worksheet Entries 2 3 4 6 7 > Prepare entry "TA Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Part B need 1 to 7

On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,017,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,070,000 and Retained Earnings of $53,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $113,000. QuickPort attributed the $6,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following: Net Income $ 9,100 13,000 Dividends Declared $ 1,300 1,300 2020 2021 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $9,500. The equipment originally cost $16,000 and had accumulated depreciation of $7700 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. Investment in NetSpeed, Inc., 12/31/21 < Required A Required B > Consolidation Worksheet Entries 2 3 4 6 7 > Prepare entry "TA Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Part B need 1 to 7

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Accounting On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,017,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,070,000 and Retained Earnings of $53,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $113,000. QuickPort attributed the $6,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following: Dividends Net Income $ 9,100 13,000 Declared $ 1,300 1,300 2020 2021 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $9,500. The equipment originally cost $16,000 and had accumulated depreciation of $7,700 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. Investment in NetSpeed, Inc., 12/31/21 < Required A Required B > Consolidation Worksheet Entries 3 4 6 > Prepare entry *"TA Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Part B need 1 to 7
Transcribed Image Text:Accounting On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,017,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,070,000 and Retained Earnings of $53,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $113,000. QuickPort attributed the $6,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following: Dividends Net Income $ 9,100 13,000 Declared $ 1,300 1,300 2020 2021 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $9,500. The equipment originally cost $16,000 and had accumulated depreciation of $7,700 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. Investment in NetSpeed, Inc., 12/31/21 < Required A Required B > Consolidation Worksheet Entries 3 4 6 > Prepare entry *"TA Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Part B need 1 to 7
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