Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following: Assets Current Assets Long-Term Assets (net) Total view transaction list Consolidation Worksheet Entries At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date. < Required: Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A B $ 220,000 420,000 Note: Enter debits before credits. Event 1 $ 640,000 Record the basic consolidation entry. Record entry Liabilities Current Liabilities Long-Term Liabilities. Common Stock Retained Earnings Total Accounts Clear entry Debit Credit $ 80,000 200,000 120,000 240,000 $ 640,000 view consolidation entries >
Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following: Assets Current Assets Long-Term Assets (net) Total view transaction list Consolidation Worksheet Entries At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date. < Required: Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A B $ 220,000 420,000 Note: Enter debits before credits. Event 1 $ 640,000 Record the basic consolidation entry. Record entry Liabilities Current Liabilities Long-Term Liabilities. Common Stock Retained Earnings Total Accounts Clear entry Debit Credit $ 80,000 200,000 120,000 240,000 $ 640,000 view consolidation entries >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
101.
Transcribed Image Text:Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31, 20X4, for $390,000. At the
date of combination, Seer reported the following:
Assets
Current Assets
Long-Term Assets (net)
Total
view transaction list
Consolidation
Worksheet Entries
At December 31, 20X4, the book values of Seer's net assets and liabilities approximated their fair values, except for buildings, which
had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair
value of the noncontrolling interest was determined to be $130,000 at that date.
A
Required:
Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the
consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
B
$ 220,000
420,000
Note: Enter debits before credits.
Event
1
$ 640,000
Record the basic consolidation entry.
Record entry
Liabilities
Current Liabilities
Long-Term Liabilities
Common Stock
Retained Earnings.
Total
Accounts
Clear entry
Debit
Credit
$ 80,000
200,000
120,000
240,000
$ 640,000
view consolidation entries
>
Transcribed Image Text:Consolidation
Worksheet Entries
<
A
B
Record the excess value (differential) reclassification entry.
Note: Enter debits before credits.
Event
2
Record entry
Accounts
Clear entry
Debit
Credit
view consolidation entries
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