Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 2, Problem 20P
To determine
Introduction: Consolidated financial statements are the single set of statements that combines two or more companies to create a single economic entity. A consolidated
The total amount of assets reported in the consolidated balances sheet on December 31, 2020.
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Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $531,550 cash. Pratt will operate
Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values
approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally
developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book
value differences as follows:
Computer software
Equipment
Client contracts
In-process research and development
Notes payable
Cash
Receivables
Inventory
Investment in Spider
Computer software
Buildings (net)
Equipment (net)
At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses):
Client contracts
Goodwill
Total assets
Accounts payable
Notes payable
Common stock
Additional paid-in capital
Retained earnings
Total liabilities…
ss
Consolidated Statements of Operations
FINANCIAL STATEMENTS
Table of Contents
Index to Financial Statements
(millions, except per share data)
2020
2019
2018
Sales
Other revenue
$
92,400 $
77,130 $
74,433
1,161
982
923
Total revenue
93,561
78,112
75,356
Cost of sales
66,177
54,864
53,299
Selling, general and administrative expenses
18,615
16,233
15,723
Depreciation and amortization (exclusive of depreciation included in cost
of sales)
2,230
2,357
2,224
Operating income
6,539
4,658
4,110
Net interest expense
977
477
461
Net other (income) / expense
16
(9)
(27)
Earnings from continuing operations before income taxes
5,546
4,190
3,676
Provision for income taxes
1,178
921
746
Net earnings from continuing operations
4,368
3,269
2,930
Discontinued operations, net of tax
12
7
Net earnings
$
4,368 $
3,281 $
2,937
Basic earnings per share
Continuing operations
Discontinued operations
Net earnings per share
Diluted earnings per share
Continuing operations
Discontinued operations
$
8.72 $
6.39 $…
Chapter 2 Solutions
Advanced Accounting
Ch. 2 - Prob. 1QCh. 2 - Describe the concept of a synergy. What are some...Ch. 2 - Prob. 3QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 39APBCh. 2 - Prob. 40APB
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