Windsor Company acquired an 80% interest in the common stock of Sheridan Company for $ 1,541,800 on July 1, 2022. Sheridan Company's stockholders' equity on that date consisted of: Common stock $801, 400 Other contributed capital 400, 400 Retained earnings 332, 300 Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the: (1) parent company concept. (2) economic unit concept. Total Noncontrolling Interest (1) Parent company concept $ (2) Economic unit concept $

Windsor Company acquired an 80% interest in the common stock of Sheridan Company for $ 1,541,800 on July 1, 2022. Sheridan Company's stockholders' equity on that date consisted of: Common stock $801, 400 Other contributed capital 400, 400 Retained earnings 332, 300 Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the: (1) parent company concept. (2) economic unit concept. Total Noncontrolling Interest (1) Parent company concept $ (2) Economic unit concept $

Name: Windsor Company acquired an 80% interest in the common stock of Sheri
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Windsor Company acquired an 80% interest in the common stock of Sheridan Company for $1,541,800 on July 1, 2022. Sheridan Company's stockholders' equity on that date consistedof: Common stock $801, 400 Other contributed capital 400, 400 Retained ear

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Oriole Company acquired an 80% interest in the common stock of Sunland Company for $1,540,400 on…

A: Non controlling interest % = Total interest - Controlling interest = 100% - 80% = 20%

Q: H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent…

A: Consolidated Accounting Statements: The accounting statement which are formed by holding and…

Q: On January 1, 2023, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…

A: Income tax expenses are the entire amount of taxes owed to a taxation body by an individual,…

Q: bove, was prepared immediately before this transaction. Provide the Investor Company's balances…

A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…

Q: Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On…

A: Consolidation of financial statement occurs when one company take over the assets and liabilities of…

Q: a. Prepare all consolidation entries needed to complete a consolidated balance sheet worksheet as of…

A: Consolidation is the process of combining the financial statements of Parent Company and the…

Q: Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary…

A: SOLUTION WORKING NOTE- CALCULATION OF FAIR VALUE OF NET ASSETS- PARTICULARS CONSOLIDATED VALUE…

Q: Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming…

A: In parent company concept, non controlling interest will be calculated on net assets of the company…

Q: ABC Co. acquired 60% interest in DEF Co. On January 1,2021. Information on the combining entities'…

A: Consolidated total assets is defined as the net book value of all the assets of the company as well…

Q: On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,840…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: Prepare a schedule to compute the difference between book value of equity and the value implied by…

A: Parent company - The parent company is an entity that owns or controls another entity, known as a…

Q: On 1 July 2020, Sky Ltd acquired 70% of the share capital (ex. div.) of Jim Ltd for $500,000. At…

A: Part 2: ExplanationIn Step 1, we calculated the NCI share of Jim Ltd's equity on the acquisition…

Q: As of December 31, 2020, the separate company financial statements of Drao co and Its 80% owned…

A: Consolidated retained earnings: The consolidated retained earnings refer to the parent company's…

Q: On 12/31/2020, a parent company purchased the bonds of its subsidiary from the bondholders of the…

A: Investment in bonds means to buy the bonds of other company so as to earn interest.

Q: Almond acquires 80% of the share capital of Cashew on 1 August 20X6 and is preparing its group…

A: For the purpose of preparation of consolidated statement of financial position, the assets and…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

Windsor Company acquired an 80% interest in the common stock of Sheridan Company for $
1,541,800 on July 1, 2022. Sheridan Company's stockholders' equity on that date consisted
of: Common stock $801, 400 Other contributed capital 400, 400 Retained earnings 332,300
Compute the total noncontrolling interest to be reported in the consolidated balance sheet
assuming the: (1) parent company concept. (2) economic unit concept. Total Noncontrolling
Interest (1) Parent company concept $ (2) Economic unit concept $

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Analysis

VIEW

Step 2: (1) Calculation of non controlling interest using parent company concept

VIEW

Step 3: (2) Calculation of non controlling interest using economic unit concept

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Passers Co. acquired 70% of the net assets of Failures Co. for P1,100,000. The assets of Failures Co. have a book value of P1,200,000 and a fair market value of P1,300,000; its liabilities are P200,000. What is the amount of minority interest in the stockholders’ equity section of the consolidated balance sheet?
Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 35,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cost Book Value Fair Value Cash $ 32,000 $ 32,000 $ 32,000 Inventory 83,000 83,000 83,000 Land 69,000 69,000 99,000 Buildings 188,000 147,000 249,000 Equipment 95,000 74,000 123,000 Accounts Payable 58,000 58,000 58,000 Required: Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab.
Prince Corporation purchased 100% of the common stock of Star Corporation on January 1, 2024 for $250,000, which was $50,000 above the underlying book value. The initial investment entry that Prince recorded on the date of the business combination will include:O a. Debit Investment in Subsidiary, $220,000; Credit Cash, $220,000. b. Debit Investment in Subsidiary, $250,000; Credit Cash, $250,000.0 c. Debit Investment in Subsidiary, $200,000; Credit Cash, $200,000. d. Debit Investment in Subsidiary, S 180,000: Credit Cash, $180,000.
Parent Co. acquired 90% of the common stock of Subsidiary Co. in a cash-only transaction. In the first consolidated balance sheet issued after this business combination, the noncontrolling interest must be reported as O A. Current assets. O B. Noncurrent assets. O C. Equity. O D. Noncurrent liabilities.
Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800
Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January 1, Year 4, for $744,000. At that date, the fair value of the non-controlling Interest was $186,000. Corner Brook's balance sheet contained the following amounts at the time of the combination: Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets 66,000 140,000 40,000 Accounts Payable $ 106,000 Bonds Payable 610,000 950,000 Common Shares ($10 par value) Retained Earnings 400,000 530,000 450,000 $1,646,000 $ 1,646,000 Total Liabilities & Equities During each of the next three years, Corner Brook reported net income of $120,000 and paid dividends of $60,000. On January 1, Year 6, Johannes sold 8,800 of the Corner Brook shares for $260,000 in cash. Johannes used the equity method in accounting for its ownership of Corner Brook. Required: (a) Compute the balance in the Investment account reported by Johannes on January 1, Year 6, before its sale of shares. (Omit $ sign…
On 1/1/2022, P Co acquired 90% of S Co stock at an amount equal to its book value.Selected balance sheet data at 1/1/ 2022, are as follows: P CO S Co Total Assets 180,000 Liabilities 60,000 Common Stock 50,000 Select one: Retained Earnings 200,000 70,000 O 420,000 In the 1/1/2022, consolidated balance sheet, what amount should be reported as non-controlling interest in net assets? a. 12,000 b. 10,500 120,000 c. 0 d. 30,000 100,000