On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $9,750,000 cash. On that date,Willey's total stockholders' equity was $7,250,000. The following assets had fair values different frombook values.Book Value Fair ValueBuildings and Land $13,500,000 $14,500,000Other AssetsBonds Payable625,000250,0007,500,000 6,250,000RequiredPrepare the [E] and [A] consolidation entries on the date of the acquisition:[E]DebitCredit[A]V(to record the [E] consolidation entry)(to record the [A] consolidation entry)DebitCredit

Consolidation refers to the process of combining financial statements of multiple entities into a…

Answered: Required Prepare the [E] and [A]…

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Required Prepare the [E] and [A] consolidation entries on the date of the acquisition:

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

On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $9,750,000 cash. On that date,
Willey's total stockholders' equity was $7,250,000. The following assets had fair values different from
book values.
Book Value Fair Value
Buildings and Land $13,500,000 $14,500,000
Other Assets
Bonds Payable
625,000
250,000
7,500,000 6,250,000
Required
Prepare the [E] and [A] consolidation entries on the date of the acquisition:
[E]
Debit
Credit
[A]
V
(to record the [E] consolidation entry)
(to record the [A] consolidation entry)
Debit
Credit

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