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The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,150 57,300 J Ltd. $ 19,800 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) 228,600 24,150 $ 406,200 $ 63,300 97,800 153,600 91,500 $ 406,200 9,150 70,800 6,300 $ 106,050 S 30,100 45,200 46,600 (15,850) $ 106,050

The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: E Ltd. $ 96,150 57,300 J Ltd. $ 19,800 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) 228,600 24,150 $ 406,200 $ 63,300 97,800 153,600 91,500 $ 406,200 9,150 70,800 6,300 $ 106,050 S 30,100 45,200 46,600 (15,850) $ 106,050

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: J Ltd. $ 19,800 E Ltd. $ 96,150 57,300 228,600 24,150 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares $ 406,200 $ 63,300 97,800 153,600 91,500 $ 406,200 9,150 70,800 6,300 $ 106,050 $ 30,100 Plant assets Long-term debt On December 31, Year 6, E Ltd. issued 483 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: 45,200 46,600 (15,850) $ 106,050 $ 2,530 1,660 $ 4,190 The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Fair value $ 65,150 40,600 E Ltd. was identified as the acquirer in the combination.
Transcribed Image Text:The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: J Ltd. $ 19,800 E Ltd. $ 96,150 57,300 228,600 24,150 Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares $ 406,200 $ 63,300 97,800 153,600 91,500 $ 406,200 9,150 70,800 6,300 $ 106,050 $ 30,100 Plant assets Long-term debt On December 31, Year 6, E Ltd. issued 483 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: 45,200 46,600 (15,850) $ 106,050 $ 2,530 1,660 $ 4,190 The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Fair value $ 65,150 40,600 E Ltd. was identified as the acquirer in the combination.
E Ltd. was identified as the acquirer in the combination Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31 Year ELM Consolidated Balance Sheet December 31, Year Assets Cash and receivables Inventory Intangible assets Liabilities and Equity Common shares Retained earings Non-controlling interest Current liabilities Long-term debit ELM Consolidated Balance Sheet December 31, Year 6 (b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method. Assets Cash and receivables Inventory Plant assets Intangible assets $ Liabilities and Equity Common shares Retained eamings Non-controlling interest Current abilities Long-term debt S $ entifiable net assets method. 10
Transcribed Image Text:E Ltd. was identified as the acquirer in the combination Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31 Year ELM Consolidated Balance Sheet December 31, Year Assets Cash and receivables Inventory Intangible assets Liabilities and Equity Common shares Retained earings Non-controlling interest Current liabilities Long-term debit ELM Consolidated Balance Sheet December 31, Year 6 (b) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the fair value enterprise method. Assets Cash and receivables Inventory Plant assets Intangible assets $ Liabilities and Equity Common shares Retained eamings Non-controlling interest Current abilities Long-term debt S $ entifiable net assets method. 10
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