On January 2, 2020, Waterway Company acquired 90% of the outstanding common stock of Oriole Company for $549,000 cash. Justbefore the acquisition, the balance sheets of the two companies were as follows:CashAccounts Receivable (net)InventoryPlant and Equipment (net)LandTotal AssetsAccounts PayableMortgage PayableCommon Stock, $2 par valueOther Contributed CapitalRetained EarningsTotal EquitiesWaterway$600,000345,000295,000995,000180,0001,050,000580,000Oriole303,000$155,000$2,415,00074,000$2,415,000 $770,000168,000$312,000 $134,000170,000275,00098,000115,000210,00060,000251,000$770,000The fair values of Oriole's assets and liabilities are equal to their book values with the exception of land. On January 2, 2020, Waterway Company acquired 90% of the outstanding common stock ofOriole Company for $549,000 cash. Just before the acquisition, the balance sheets of the twocompanies were as follows: The fair values of Oriole's assets and liabilities are equal to theirbook values with the exception of land.prepare a consolidated balance sheet.

Consolidated Balance Sheet is the financial statement prepared by the parent company by combining…

On January 2, 2020, Waterway Company acquired 90% of the outstanding common stock of Oriole Company for $549,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Land Total Assets Accounts Payable Mortgage Payable Common Stock, $2 par value Other Contributed Capital Retained Earnings Total Equities Waterway $600,000 $155,000 345,000 295,000 995,000 180,000 $312,000 170,000 1,050,000 580,000 Oriole $2,415,000 $770,000 303,000 $2,415,000 74,000 168,000 275,000 98,000 $134,000 115,000 210,000 60,000 251,000 $770,000 The fair values of Oriole's assets and liabilities are equal to their book values with the exception of land.

On January 2, 2020, Waterway Company acquired 90% of the outstanding common stock of Oriole Company for $549,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Land Total Assets Accounts Payable Mortgage Payable Common Stock, $2 par value Other Contributed Capital Retained Earnings Total Equities Waterway $600,000 $155,000 345,000 295,000 995,000 180,000 $312,000 170,000 1,050,000 580,000 Oriole $2,415,000 $770,000 303,000 $2,415,000 74,000 168,000 275,000 98,000 $134,000 115,000 210,000 60,000 251,000 $770,000 The fair values of Oriole's assets and liabilities are equal to their book values with the exception of land.

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 2, 2020, Waterway Company acquired 90% of the outstanding common stock of Oriole Company for $549,000 cash. Just
before the acquisition, the balance sheets of the two companies were as follows:
Cash
Accounts Receivable (net)
Inventory
Plant and Equipment (net)
Land
Total Assets
Accounts Payable
Mortgage Payable
Common Stock, $2 par value
Other Contributed Capital
Retained Earnings
Total Equities
Waterway
$600,000
345,000
295,000
995,000
180,000
1,050,000
580,000
Oriole
303,000
$155,000
$2,415,000
74,000
$2,415,000 $770,000
168,000
$312,000 $134,000
170,000
275,000
98,000
115,000
210,000
60,000
251,000
$770,000
The fair values of Oriole's assets and liabilities are equal to their book values with the exception of land.

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