Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fairvalue of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulateddepreciation on depreciable assets was $60,000 on the acquisition date. Proud uses the equity method in accounting for itsownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows:ItemCurrent AssetsDepreciable AssetsInvestment in Spirited CompanyDepreciation ExpenseOther ExpensesDividends DeclaredAccumulated DepreciationCurrent LiabilitiesLong-Term DebtCommon StockRetained EarningsSalesIncome from Spirited CompanyNoAEvent1Proud CorporationDebit$ 235,000500,000152,00025,000150,00050,000Common stockRetained earningsIncome from Spirited CompanyNCI in Net Income of Spirited CompanyDividends declaredInvestment in Spirited CompanyNCI in Net Assets of Spirited Company$ 200,00070,000100,000200,000284,000230,00028,000$ 1,112,000 $ 1,112,000Answer is not complete.Accounts3333CreditRequired:a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements.Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field.✔✔Spirited CompanyDebit$ 150,000Credit300,000Debit100,00070,00028,000136,000 X15,00090,00015,000$570,000$ 90,00050,000120,000100,00070,000140,000Credit$570,000

The consolation is the accounting process in which the financial results of the parent company and…

Required: a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field.

Required: a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fair
value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated
depreciation on depreciable assets was $60,000 on the acquisition date. Proud uses the equity method in accounting for its
ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows:
Item
Current Assets
Depreciable Assets
Investment in Spirited Company
Depreciation Expense
Other Expenses
Dividends Declared
Accumulated Depreciation
Current Liabilities
Long-Term Debt
Common Stock
Retained Earnings
Sales
Income from Spirited Company
No
A
Event
1
Proud Corporation
Debit
$ 235,000
500,000
152,000
25,000
150,000
50,000
Common stock
Retained earnings
Income from Spirited Company
NCI in Net Income of Spirited Company
Dividends declared
Investment in Spirited Company
NCI in Net Assets of Spirited Company
$ 200,000
70,000
100,000
200,000
284,000
230,000
28,000
$ 1,112,000 $ 1,112,000
Answer is not complete.
Accounts
3333
Credit
Required:
a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements.
Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field.
✔
✔
Spirited Company
Debit
$ 150,000
Credit
300,000
Debit
100,000
70,000
28,000
136,000 X
15,000
90,000
15,000
$570,000
$ 90,000
50,000
120,000
100,000
70,000
140,000
Credit
$570,000

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