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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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
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
Ch On December 31, 2019, Akron, Inc., purchased $16,500. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $94,250. percent of Zip Company's common shares on the open market in exchange for During the next two years, the following information is available for Zip Company: Common Stock Dividends Fair Value Income Declared (12/31) $330,000 377,000 480,000 2019 2020 $85,000 98,000 $6,300 15,800 2021 At December 31, 2020, Zip reports a net book value of $293,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2020. a. Assume Akron applies the equity method to its Investment in Zip account: 1. What amount of equity income should Akron report for 2021? 2. On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in Zip account?
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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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