Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statem ent for Papa Ltd. on the date acquisition give the separate statements for each entity below Рарa Ltd. Child Ltd. Assets: Cash Accounts Receivable Inventory Other assets Property Plant and Equipment $100,000 15,000 100,000 5,000 70,000 $1,000 5,000 30,000 4,000 40,000 Total Assets Liabilities: Accounts Payable Accrued Expenses Other Liability Long term debt Equity: Common Stock $290,000 $80,000 10,000 5,000 20,000 50,000 3,000 2,000 5,000 10,000 Retained Earnings Total Liability & Equity 120,000 85,000 $290,000 40,000 20,000 $80,000
Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statem ent for Papa Ltd. on the date acquisition give the separate statements for each entity below Рарa Ltd. Child Ltd. Assets: Cash Accounts Receivable Inventory Other assets Property Plant and Equipment $100,000 15,000 100,000 5,000 70,000 $1,000 5,000 30,000 4,000 40,000 Total Assets Liabilities: Accounts Payable Accrued Expenses Other Liability Long term debt Equity: Common Stock $290,000 $80,000 10,000 5,000 20,000 50,000 3,000 2,000 5,000 10,000 Retained Earnings Total Liability & Equity 120,000 85,000 $290,000 40,000 20,000 $80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of
Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statement for
Papa Ltd. on the date acquisition give the separate statements for each entity below
Papa Ltd.
Child Ltd.
Assets:
Cash
$100,000
15,000
100,000
$1,000
5,000
30,000
4,000
Accounts Receivable
Inventory
Other assets
5,000
Property Plant and Equipment
70,000
40,000
Total Assets
$290,000
$80,000
Liabilities:
Accounts Payable
Accrued Expenses
Other Liability
Long term debt
Equity:
Common Stock
10,000
5,000
20,000
50,000
3,000
2,000
5,000
10,000
120,000
40,000
Retained Earnings
Total Liability & Equity
85,000
20,000
$290,000
$80,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education