On January 1, 2023, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,175,500. Following is the statement of financial position of Sheffield Ltd. from the company's year-end the previous day: Sheffield LTD. Statement of Financial Position As at December 31, 2022 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $670,000 561,000 2,510,000 2,110,000 2,550,000 $8,401,000 $311,000 2,560,000 5,530,000 $8,401,000 As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land Accounts payable $559,900 2,270,000 1,955,000 3,600,000 300,400

On January 1, 2023, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,175,500. Following is the statement of financial position of Sheffield Ltd. from the company's year-end the previous day: Sheffield LTD. Statement of Financial Position As at December 31, 2022 Cash Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $670,000 561,000 2,510,000 2,110,000 2,550,000 $8,401,000 $311,000 2,560,000 5,530,000 $8,401,000 As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land Accounts payable $559,900 2,270,000 1,955,000 3,600,000 300,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

On January 1, 2023, AMI Corporation purchased the non-cash net assets of Sheffield Ltd. for $8,175,500. Following is the statement
of financial position of Sheffield Ltd. from the company's year-end the previous day:
Sheffield LTD.
Statement of Financial Position
As at December 31, 2022
Cash
Accounts receivable
Inventory
Property, plant, and equipment (net)
Land
Accounts payable
Common shares
Retained earnings
As part of the negotiations, AMI and Sheffield agreed on the following fair values for the items on Sheffield's statement of financial
position:
Accounts receivable
Inventory
Property, plant, and equipment
Land
$670,000
561,000
2,510,000
2,110,000
2,550,000
$8,401,000
$311,000
2,560,000
5,530,000
$8,401,000
Accounts payable
$559,900
2,270,000
1,955,000
3,600,000
300,400

(b)
Prepare the journal entry on the books of AMI Corporation to record the purchase, assuming that instead of buying the net assets
of Windsor, AMI purchased all of the company's shares, instead. (If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry
before credit entry.)
Account Titles and Explanation
eTextbook and Media
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Debit
Credit
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e of cents Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders' equity consisting of common stock, $200,000; other com $160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows: Price $ 109,000 $ Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Score 78,000 94,000 -0- 166,000 75,000 309,000 158,000 450,000 -0- 940,000 420,000 160,000 70,000 70,000 50,000 822,000 242,000 250,500 124,000 Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Notes Payable Common Stock $3,351,500 $1,236,000 $ 132,000 $ 46,000 300,000 120,000 500,000 200,000 260,000 160,000 Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits 687,000 1,420,000 52,500 $3.351,500 $1,236,000 210,000 500,000 -0- Price…
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