On January 1, 2021, Pikes Corporation loaned Venti Company $309,000 and agreed to guarantee all of Venti's long-term debt in exchange for (1) decision-making authority over all of Venti's activities and (2) an annual managementfee of 25 percent of Venti's annual revenues. As a result of the agreement, Pikes becomes the primary beneficiaryof Venti (now a variable interest entity). Pikes' loan to Venti stipulated a 10 percent (market) rate of interest to bepaid annually with principal due in 10 years.On January 1, 2021, Pikes estimated that the fair value of Venti's equity shares equaled $84,000 while Venti's bookvalue was $64,000. Any excess fair over book value at that date was attributed to Venti's trademark with anindefinite life.Because Pikes owns no equity in Venti, all of the acquisition-date excess fair over book value is allocated to thenoncontrolling interest.Venti paid Pikes 25 percent of its 2021 revenues at the end of the year and recorded the payment in otheroperating expenses. Venti also paid the interest to Pikes for the loan. On December 31, 2021, Pikes and Ventisubmitted the following statements for consolidation. (Parentheses indicate credit balances.)PikesVentiRevenues2$(801,000)$ (225,000)Management feeCost of good soldOther operating expenses(56,250)630,00085,000(30,900)89,90064,900Interest incomeInterest expense39,900Net income(173,150)(30,300)Retained earnings, 1/1(1,381,800)(173,150)(49,000)(30,300)Net income76,800(1,478,150)Dividends declaredRetained earnings, 12/31(79,300)Current assets405,000309,00082,000Loan receivable from VentiEquipment (net)904,000536,000Trademark134,000Total assets1,618,000752,000(101,000)(309,000)(247,700)(15,000)(79,300)Current liabilities(89,850)Loan payable to PikesOther long-term debt(50,000)(1,478,150)Common stockRetained earnings, 12/31Total liabilities and equity$(1,618,000)$ (752,000)Prepare the December 31, 2021, consolidation worksheet for Pikes and its variable interest entity Venti. (Foraccounts where multiple consolidation entries are required, combine all debit entries into one amount and enterthis amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount andenter this amount in the credit column of the worksheet. Input all amounts as positive values.)

Consolidation is a process in which financial statements of subsidiary company is aggregated by the…

Prepare the December 31, 2021, consolidation worksheet for Pikes and its variable interest entity Venti. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and ente this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.)

Prepare the December 31, 2021, consolidation worksheet for Pikes and its variable interest entity Venti. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and ente this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.)

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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Start at Jul 30th and go all the way through please.
Subject: accounting
Can you help with D, E, and F
If the top five accounts listed on a firm’s trial balance all represent asset accounts, then which of the following statements is MOST likely accurate? Select answer from the options below 1.The values for all five accounts will appear in the debit column. 2.All five accounts should instead be listed at the bottom of the trial balance. 3.The values for all five accounts will appear in the credit column. 4.Some of the values for these accounts will appear in the debit column, while others will appear in the credit column.
Selected accounts of Beam Electrical, Inc., at November 30, 2018, follow. (Click the icon to view the accounts.) Read the requirements. Requirement 1. Prepare the entity's closing entries. Begin by closing out the revenue accounts. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Nov
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On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $790,000, retained earnings of $340,000, and a noncontrolling interest fair value of $420,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Inventory Dividends Purchases from Net Income Declared Corgan $190,000 210, 000 $240, 000 $44,000 54,000 2020 2021 220,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 50 percent of the current year purchases remain in Smashing's inventory. a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021. b. Prepare the worksheet…
I need help with this practice problem. Put the balances from the adjusted trial balance into the T accountsCreate properly formatted income statement and balance sheet for the year and the balance sheet as of 12/31.Create the closing entries.Post the results of the closing entries into the T accountDraw off balances for the T accounts.Create the post-closing trial balance
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Kindly prepare the Worksheet for this. thank yoouu!!