The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period.       Mergaronite   Hill Revenues   $ (592,000 )   $ (248,000 ) Cost of goods sold     270,000       88,000   Depreciation expense     112,000       46,000   Investment income     NA       NA   Retained earnings, 1/1/21     (906,000 )     (592,000 ) Dividends declared     124,000       38,000   Current assets     182,000       690,000   Land     294,000       94,000   Buildings (net)     500,000       156,000   Equipment (net)     190,000       244,000   Liabilities     (394,000 )     (300,000 ) Common stock     (316,000 )     (46,000 ) Additional paid-in capital     (54,000 )     (870,000 )     Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,400 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill’s land was undervalued by $18,200, its buildings were overvalued by $29,800, and equipment was undervalued by $59,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life.   help me with the incorrect values       Consolidated Totals Revenues $840,000selected answer correct Cost of goods sold $358,000selected answer correct Depreciation expense $171,660selected answer incorrect Amortization expense $4,800selected answer correct Buildings $685,800selected answer incorrect Equipment $434,000selected answer correct Customer list $120,000selected answer incorrect Common stock $316,000selected answer correct Additional paid-in capital $54,000selected answer correct 1. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? This is all one question. Please help!!!!!!!!!!!  These are the entries that i need help with!!!!!!!!!!!!   Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary. Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year. Prepare Entry I to remove the equity income recognized during the year - equity method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period.

 

    Mergaronite   Hill
Revenues   $ (592,000 )   $ (248,000 )
Cost of goods sold     270,000       88,000  
Depreciation expense     112,000       46,000  
Investment income     NA       NA  
Retained earnings, 1/1/21     (906,000 )     (592,000 )
Dividends declared     124,000       38,000  
Current assets     182,000       690,000  
Land     294,000       94,000  
Buildings (net)     500,000       156,000  
Equipment (net)     190,000       244,000  
Liabilities     (394,000 )     (300,000 )
Common stock     (316,000 )     (46,000 )
Additional paid-in capital     (54,000 )     (870,000 )
 

 

Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,400 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill’s land was undervalued by $18,200, its buildings were overvalued by $29,800, and equipment was undervalued by $59,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life.

 

help me with the incorrect values
 
 
  Consolidated Totals
Revenues $840,000selected answer correct
Cost of goods sold $358,000selected answer correct
Depreciation expense $171,660selected answer incorrect
Amortization expense $4,800selected answer correct
Buildings $685,800selected answer incorrect
Equipment $434,000selected answer correct
Customer list $120,000selected answer incorrect
Common stock $316,000selected answer correct
Additional paid-in capital $54,000selected answer correct

1. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? This is all one question. Please help!!!!!!!!!!!

 These are the entries that i need help with!!!!!!!!!!!!

 

Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary.

Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year.

Prepare Entry I to remove the equity income recognized during the year - equity method.

Prepare Entry D to remove the Intra-entity dividend declarations.
Prepare Entry E to recognize the excess acquisition-date fair-value amortizations for the period.
 
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