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Current Assets Plant and Equipment (net) Land Total Assets Current Liabilities Long-term Notes Payable Common Stock P COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2020 Assets -64 Liabilities and Stockholders' Equity Other Contributed Capital Retained Earnings Noncontrolling Interest Total Liabilities and Stockholder's Equity +A 60 266000 823000 170000 1259000 180000 36000 520000 122000 267000 134000 1259000 P Company purchased 80% of the outstanding common stock of H Company on January 2, 2020, for $390,000. Balance sheets for P Company and H Company immediately after the stock acquisition were as follows: P Company H Company Current assets $162,000 $104,000 Investment in H Company 390,000 -0- Plant and equipment (net) 605,000 218,000 Land 32,000 138,000 $1,189,000 $460,000 Current liabilities $140,000 $40,000 Long-term notes payable -0- 36,000 Common stock 520,000 155,000 Other contributed capital 262,000 69,000 Retained earnings 267,000 160,000 $1,189,000 $460,000 H Company owed P Company $18,000 on open account on the date of acquisition. Prepare a consolidated balance sheet for P and H Companies on the date of acquisition. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. The book values of H Company's other assets and liabilities are equal to their fair values. (List assets in order of liquidity.)

Current Assets Plant and Equipment (net) Land Total Assets Current Liabilities Long-term Notes Payable Common Stock P COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2020 Assets -64 Liabilities and Stockholders' Equity Other Contributed Capital Retained Earnings Noncontrolling Interest Total Liabilities and Stockholder's Equity +A 60 266000 823000 170000 1259000 180000 36000 520000 122000 267000 134000 1259000 P Company purchased 80% of the outstanding common stock of H Company on January 2, 2020, for $390,000. Balance sheets for P Company and H Company immediately after the stock acquisition were as follows: P Company H Company Current assets $162,000 $104,000 Investment in H Company 390,000 -0- Plant and equipment (net) 605,000 218,000 Land 32,000 138,000 $1,189,000 $460,000 Current liabilities $140,000 $40,000 Long-term notes payable -0- 36,000 Common stock 520,000 155,000 Other contributed capital 262,000 69,000 Retained earnings 267,000 160,000 $1,189,000 $460,000 H Company owed P Company $18,000 on open account on the date of acquisition. Prepare a consolidated balance sheet for P and H Companies on the date of acquisition. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. The book values of H Company's other assets and liabilities are equal to their fair values. (List assets in order of liquidity.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 19E
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Current Assets Plant and Equipment (net) Land Total Assets Current Liabilities Long-term Notes Payable Common Stock P COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2020 Assets -64 Liabilities and Stockholders' Equity Other Contributed Capital Retained Earnings Noncontrolling Interest Total Liabilities and Stockholder's Equity +A 60 266000 823000 170000 1259000 180000 36000 520000 122000 267000 134000 1259000
Transcribed Image Text:Current Assets Plant and Equipment (net) Land Total Assets Current Liabilities Long-term Notes Payable Common Stock P COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2020 Assets -64 Liabilities and Stockholders' Equity Other Contributed Capital Retained Earnings Noncontrolling Interest Total Liabilities and Stockholder's Equity +A 60 266000 823000 170000 1259000 180000 36000 520000 122000 267000 134000 1259000
P Company purchased 80% of the outstanding common stock of H Company on January 2, 2020, for $390,000. Balance sheets for P Company and H Company immediately after the stock acquisition were as follows: P Company H Company Current assets $162,000 $104,000 Investment in H Company 390,000 -0- Plant and equipment (net) 605,000 218,000 Land 32,000 138,000 $1,189,000 $460,000 Current liabilities $140,000 $40,000 Long-term notes payable -0- 36,000 Common stock 520,000 155,000 Other contributed capital 262,000 69,000 Retained earnings 267,000 160,000 $1,189,000 $460,000 H Company owed P Company $18,000 on open account on the date of acquisition. Prepare a consolidated balance sheet for P and H Companies on the date of acquisition. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. The book values of H Company's other assets and liabilities are equal to their fair values. (List assets in order of liquidity.)
Transcribed Image Text:P Company purchased 80% of the outstanding common stock of H Company on January 2, 2020, for $390,000. Balance sheets for P Company and H Company immediately after the stock acquisition were as follows: P Company H Company Current assets $162,000 $104,000 Investment in H Company 390,000 -0- Plant and equipment (net) 605,000 218,000 Land 32,000 138,000 $1,189,000 $460,000 Current liabilities $140,000 $40,000 Long-term notes payable -0- 36,000 Common stock 520,000 155,000 Other contributed capital 262,000 69,000 Retained earnings 267,000 160,000 $1,189,000 $460,000 H Company owed P Company $18,000 on open account on the date of acquisition. Prepare a consolidated balance sheet for P and H Companies on the date of acquisition. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. The book values of H Company's other assets and liabilities are equal to their fair values. (List assets in order of liquidity.)
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