Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 3, Problem 2Q
To determine
Describe the values that should be included in consolidated totals:
a. Equipment
b. Investment in Williams Company
c. Dividends Declared
d.
e. Revenues
f. Expenses
g. Common Stock
h. Net Income
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Students have asked these similar questions
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To
acquire these shares, Presidio Issued to the owners of Mason $329,000 in long-term liabilities and 20,000 shares of
common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $32,500 to
accountants, lawyers, and brokers for assistance in the acquisition and another $17,000 in connection with stock
Issuance costs.
Prior to these transactions, the balance sheets for the two companies were as follows:
Cash
Presidio
Company
Mason
Company
$ 36,200
Items
$ 81,900
Receivables
290,000
151,000
Inventory
378,000
178,000
Land
284,000
272,000
Buildings (net)
469,000
280,000
Equipment (net)
194,000
71,100
Accounts payable
(179,000)
(47,700)
Long-term
liabilities
Common stock-$1 par
value
Common stock-$20 par
value
Additional paid-in
capital
Retained earnings,
1/1/24
(462,000) (329,000)
(110,000)
в
0 (120,000)
(360,000)
(585,900) (491,600)
Note:…
(a) Prepare a consolidated statement of financial position in order of liquidity ie starting with cash at the date of acquisition under each of the following: (i) Identifiable net assets method
Prepare the set of consolidated financial statements at the end of the year.
Chapter 3 Solutions
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