Problem 5 (Recommended: review slides 39-70)Jim Company acquired a 100% of the common stock of John Company on January 1, 2024. JohnCompany maintains separate incorporation. Immediately following the acquisition, Jim and John hadthe following shareholders' equity accounts:Common stockAdditional Paid-in CapitalRetained Earnings (1/1/2024)Total SEJimJohn300,000 200,000200,000250,000300,000 150,000800.000 600,000Determine the shareholder equity accounts of the consolidated company based on the consolidatedworksheet prepared on the date of acquisition? Please, explain your answer.

To determine the shareholders' equity accounts of the consolidated company on the date of…

Answered: Problem 5 (Recommended: review slides…

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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2 AB Inc. acquired 100% of the voting common stock of CD Inc. on January 1, 2013. On that date, AB had total liabilities with a book value $650,000 and a fair value of $680,000. CD had total liabilities with a book value of $430,000 and a fair value of $420,000. Assuming both companies continue to operate separately, how much total liabilities that would appear on the consolidated Balance Sheet at January 1, 2013? put of question Select one: O a. $1,070,000 O b. $1,100,000 O c. $1,110,000 O d. $1,080,000 Next page W Type here to search
Prince Corporation purchased 100% of the common stock of Star Corporation on January 1, 2024 for $250,000, which was $50,000 above the underlying book value. The initial investment entry that Prince recorded on the date of the business combination will include:O a. Debit Investment in Subsidiary, $220,000; Credit Cash, $220,000. b. Debit Investment in Subsidiary, $250,000; Credit Cash, $250,000.0 c. Debit Investment in Subsidiary, $200,000; Credit Cash, $200,000. d. Debit Investment in Subsidiary, S 180,000: Credit Cash, $180,000.
PROBLEM III. FNE Company (classified as SME) acquired 4,000 shares of the outstanding stock of HCYSYLM Company for P1,200,000 on January 1, 2019. FNE Company also paid P100,000 direct costs related to the combination. On this date, the stockholders' equity of HCYSYLM Company consisted of Capital Stock of P500,000 P100 par and Retained Earnings of P600,000. The carrying values of HCYSYLM Company's identifiable assets and liabilities are equal to their fair market values. At the end of the year, FNE Company reported net income of P300,000 and paid dividends of P250,000 while HCYSYLM Company reported net income of P200,000 and paid dividends of P10 per share. 1. The consolidated net income on December 31, 2019 is 2. The amount of Goodwill in the consolidated balance sheet is 3. The non-controlling interest in December 31, 2019 presented in the shareholders' equity of FNE is
Windsor Company acquired an 80% interest in the common stock of Sheridan Company for $ 1,541,800 on July 1, 2022. Sheridan Company's stockholders' equity on that date consisted of: Common stock $801, 400 Other contributed capital 400, 400 Retained earnings 332,300 Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the: (1) parent company concept. (2) economic unit concept. Total Noncontrolling Interest (1) Parent company concept $ (2) Economic unit concept $
46. Consolidation at the end of the first year subsequent to date of acquisition-Equity method (purchase price equals book value) Assume a parent company acquires its subsidiary on January 1, 2022, by exchanging 30,000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $17 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year. On the acquisition date, all of the subsidiary's assets and liabilities had fair values equaling their book values. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2022. LO2 X
(Consolidation – Wholly Owned Subsidiary) On 1 July 2020, Kent Ltd acquired all the share capital (Ex-dividend) of Sub Ltd for $500,000. The financial statements of Kent Ltd showed the equity of Sub Ltd at that date to be: Share capital — 60 000 $5 shares $300 000 General reserve 40 000 Retained earnings 90 000 All the assets and liabilities of Sub Ltd were recorded at amounts equal to their fair values at that date except the following: Carrying Amount Fair value Land $150 000 $170 000 Plant (Cost $400 000) $300 000 $350 000 Inventory $75 000 $80 000 Additional information: On 10 September 2020, Sub Ltd paid interim cash dividend of $10,000. At acquisition date, 1 July 2020, Sub Ltd has an unrecorded…
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 10,000 c. 47,500 d. 50,000
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 47,500 c. 50,000 d. 10,000 Next page ere to search hp 近

QUESTION On December 31, 2020, P Company purchased a controlling interest in S. Company for $1.060,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in S Company of $265,000. On the date of acquisition, the stockholders' equity section of S Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total Noncontrolling Interest Percentage is: $520,000 $380,000 Required: 1. Compute the noncontrolling interest percentage on December 31, 2020. Otsek S $280,000 $1,180,000 2. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary PP&E. Debit Credit 7 points
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using equity methods what is good will balance on 1/1/2019 Select one: a. 10,000 b. 47,500 c. 37,500 d. 50,000 Previous page Next pag W to search hp
Peter Company acquired 80 percent of the common stock of Paul Company on January 1, 2022, when Paul had the following balances in its stockholders’ equity accounts: Common stock (40,000 shares outstanding) $ 100,000 Additional paid-in capital 75,000 Retained earnings, 1/1/22 540,000 Total stockholders’ equity $ 715,000 To acquire this interest in Paul, Peter pays a total of $592,000. The acquisition-date fair value of the 20 percent noncontrolling interest was $148,000. Any excess fair value was allocated to goodwill, which has not experienced any impairment. Peter uses the equity method to account for its investment in Paul. On January 1, 2023, Paul has retained earnings of $620,000. Treat each of the following scenarios as an independent situation: On January 1, 2023, Paul issues 10,000 shares as stock dividend when the stock’s fair market value is $15 per share. What is the adjustment (if…
View previous attempt On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $295,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $26,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $11,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Items Presidio Company $ 63,000 Mason Company $ 29,200 Receivables Inventory Land Buildings (net) 306,000 189,000 426,000 168,000 207,000 213,000 484,000 237,000 Equipment (net) $167,000 73,800 Accounts payable Long-term liabilities Common stock-$1 par value (221,000) (62,700) (444,000) (295,000) (110,000) 0 Common stock-$20 par value 0 (120,000) Additional paid-in capital Retained earnings, 1/1/24 (360,000) (518,000)…

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