On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $7,800,000 cash. On that date, Willey's total stockholders' equity was $5,800,000. The following assets had fair values different from book values. Book Value Fair Value Buildings and Land $10,800,000 $11,600,000 Other Assets Bonds Payable Required 500,000 6,000,000 200,000 5,000,000 Prepare the [E] and [A] consolidation entries on the date of the acquisition: [E] Stockholders' equity Equity investment (to record the [E] consolidation entry) Debit 5,800,000 Credit 0 0 5,800,000 [A] Debit Credit Buildings and land Bonds payable 800,000 1,000,000 0 0 Goodwill 2,500,000 0x Other assets 0 300,000 Equity investment 0 4,000,000 x (to record the [A] consolidation entry.)
On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $7,800,000 cash. On that date, Willey's total stockholders' equity was $5,800,000. The following assets had fair values different from book values. Book Value Fair Value Buildings and Land $10,800,000 $11,600,000 Other Assets Bonds Payable Required 500,000 6,000,000 200,000 5,000,000 Prepare the [E] and [A] consolidation entries on the date of the acquisition: [E] Stockholders' equity Equity investment (to record the [E] consolidation entry) Debit 5,800,000 Credit 0 0 5,800,000 [A] Debit Credit Buildings and land Bonds payable 800,000 1,000,000 0 0 Goodwill 2,500,000 0x Other assets 0 300,000 Equity investment 0 4,000,000 x (to record the [A] consolidation entry.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I can find the values for the equity and investment asset credits/debits
![On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $7,800,000 cash. On that date, Willey's total stockholders' equity was $5,800,000. The following assets had fair values different from book values.
Book Value Fair Value
Buildings and Land $10,800,000 $11,600,000
Other Assets
Bonds Payable
Required
500,000
6,000,000
200,000
5,000,000
Prepare the [E] and [A] consolidation entries on the date of the acquisition:
[E]
Stockholders' equity
Equity investment
(to record the [E] consolidation entry)
Debit
5,800,000
Credit
0
0
5,800,000
[A]
Debit
Credit
Buildings and land
Bonds payable
800,000
1,000,000
0
0
Goodwill
2,500,000
0x
Other assets
0
300,000
Equity investment
0
4,000,000 x
(to record the [A] consolidation entry.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ace54ba-f298-45c1-9eed-ec2836b84c4b%2F71d8ee4a-1e44-49c4-bbaf-d9a0f0dc9261%2Fmrjo51w_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $7,800,000 cash. On that date, Willey's total stockholders' equity was $5,800,000. The following assets had fair values different from book values.
Book Value Fair Value
Buildings and Land $10,800,000 $11,600,000
Other Assets
Bonds Payable
Required
500,000
6,000,000
200,000
5,000,000
Prepare the [E] and [A] consolidation entries on the date of the acquisition:
[E]
Stockholders' equity
Equity investment
(to record the [E] consolidation entry)
Debit
5,800,000
Credit
0
0
5,800,000
[A]
Debit
Credit
Buildings and land
Bonds payable
800,000
1,000,000
0
0
Goodwill
2,500,000
0x
Other assets
0
300,000
Equity investment
0
4,000,000 x
(to record the [A] consolidation entry.)
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