ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
12th Edition
ISBN: 9781260824292
Author: Christensen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 3, Problem 3.24P
a.
To determine
Introduction:
The consolidated financial statements are prepared for providing a consolidated view of the financials of the company having subsidiary companies. The
To calculate:The amount to be paid by P to purchase shares of S.
b.
To determine
Introduction:
The consolidated financial statements are prepared for providing a consolidated view of the financials of the company having subsidiary companies. The cash flows of all the subsidiary companies are shown as one entity in these statements.
To calculate:The fair value of S’s net assets.
c.
To determine
Introduction:
The consolidated financial statements are prepared for providing a consolidated view of the financials of the company having subsidiary companies. The cash flows of all the subsidiary companies are shown as one entity in these statements.
To calculate:The value assigned to non-controlling interest.
d.
To determine
Introduction:
The consolidated financial statements are prepared for providing a consolidated view of the financials of the company having subsidiary companies. The cash flows of all the subsidiary companies are shown as one entity in these statements.
To calculate:The non-controlling interest to be reported in the consolidated financial statements.
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2) On January 1, 20X5, Peery Company acquired 100 percent of Standard Company's
common shares at underlying book value. Peery uses the equity method in accounting for its
ownership of Standard. On December 31, 20X5, the trial balances of the two companies are as
follows:
Item
Current Assets
Depreciable Assets
Investment in Standard
Company
Other Expenses
Depreciation Expense
Dividends Declared
Accumulated Depreciation
Current Liabilities
Long-Term Debt
Common Stock
Retained Earnings
Sales
Income from Standard
Company
Peery Company
Debit
$ 238,000
300,000
100,000
90,000
30,000
32,000
Credit
$ 120,000
50,000
120,000
100,000
175,000
200,000
25,000
Standard Company
Debit
Credit
$ 95,000
170,000
70,000
17,000
10,000
$ 790,000 $ 790,000 $362,000
$ 85,000
30,000
50,000
50,000
35,000
112,000
$362,000
Required:
1. Prepare the consolidation entries needed as of December 31, 20X5, to complete a
consolidation worksheet.
2. Prepare a three-part consolidation worksheet as of December 31, 20X5.
Subject- accounting
P Inc. purchased 81% of the voting shares of S Inc for $696,143 cash on January 1, year 2. P recorded Investment in S at cost.
The Balance Sheet of P Inc. & S Inc. for year 5 showed the following balances
P Inc. S Inc.
Investment $696,143 $90,653
What is the amount for Investment on Consolidated Balance Sheet of P Inc. for year5?
Chapter 3 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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