Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At thatdate, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation. Screen's balance sheeton January 1, 20X8, contained the following balances:CashAccounts ReceivableInventoryBuildings and Equipment300,000Less: Accumulated Depreciation (100,000) Retained EarningsTotal Assets$50,00035,00040,000Accounts PayableBonds PayableCommon StockAdditional Paid-In CapitalO $135,625.O $185,000.$ 325,000 Total Liabilities and Equities $ 325,000On January 1, 20X8, Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.$155,000.O $165,625.$ 40,000100,00050,00075,00060,000Based on the preceding information, in the consolidating entry needed in preparing a consolidated balance sheet immediately following theacquisition of shares, Investment in Screen stock will be credited for:

A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…

Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation. Screen's balance sheet on January 1, 20X8, contained the following balances: Cash $50,000 Accounts Payable Accounts Receivable 35,000 Bonds Payable Inventory 40,000 Common Stock Buildings and Equipment 300,000 Additional Paid-In Capital Less: Accumulated Depreciation (100,000) Retained Earnings Total Assets $ 40,000 100,000 50,000 75,000 60,000 $ 325,000 Total Liabilities and Equities $ 325,000 On January 1, 20X8, Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share. Based on the preceding information, in the consolidating entry needed in preparing a consolidated balance sheet immediately following the acquisition of shares, Investment in Screen stock will be credited for: O $135,625. O $185,000. O $155,000. O $165,625.

Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation. Screen's balance sheet on January 1, 20X8, contained the following balances: Cash $50,000 Accounts Payable Accounts Receivable 35,000 Bonds Payable Inventory 40,000 Common Stock Buildings and Equipment 300,000 Additional Paid-In Capital Less: Accumulated Depreciation (100,000) Retained Earnings Total Assets $ 40,000 100,000 50,000 75,000 60,000 $ 325,000 Total Liabilities and Equities $ 325,000 On January 1, 20X8, Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share. Based on the preceding information, in the consolidating entry needed in preparing a consolidated balance sheet immediately following the acquisition of shares, Investment in Screen stock will be credited for: O $135,625. O $185,000. O $155,000. O $165,625.

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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