On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Cash Accounts receivable Inventory Investment in Bonita Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total Metlock $42,000 52,380 38,080 132,000 154,140 (47,800) $370,800 $19,220 37,450 125,730 143,170 45,230 $370,800 Bonita $17,400 32,550 25,190 105,930 (18,700) $162,370 $24,570 92,500 16,060 29,240 $162,370

On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows: Assets Cash Accounts receivable Inventory Investment in Bonita Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total Metlock $42,000 52,380 38,080 132,000 154,140 (47,800) $370,800 $19,220 37,450 125,730 143,170 45,230 $370,800 Bonita $17,400 32,550 25,190 105,930 (18,700) $162,370 $24,570 92,500 16,060 29,240 $162,370

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

100%

Calculate the percentage of Bonita acquired by Metlock Company.

On January 1, 2024, Metlock Company purchased 7,400 shares of Bonita Company's common stock for $132,000. Immediately after
the stock acquisition, the statements of financial position of Metlock and Bonita appeared as follows:
Assets
Cash
Accounts receivable
Inventory
Investment in Bonita Company
Plant assets
Accumulated depreciation-plant assets
Total
Liabilities and Owners' Equity
Current liabilities
Mortgage notes payable
Common stock, $10 par value
Other contributed capital
Retained earnings
Total
Metlock
$42,000
52,380
38,080
132,000
154,140
(47,800)
$370,800
$19,220
37,450
125,730
143,170
45,230
$370,800
Bonita
$17,400
32,550
25,190
105,930
(18,700)
$162,370
$24,570
92,500
16,060
29,240
$162,370

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