Concept explainers
a.
Concept introduction:
The consolidated
To prepare: A
a.
Explanation of Solution
Particulars | Amount$ | Amount$ |
Investment in S Dr. | ||
Cash Cr. | ||
(To record investment in S Co.) |
b.
Concept introduction:
The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.
To prepare: The consolidate worksheet for the final values
b.
Explanation of Solution
Income statement | P($) | S ($) | Eliminated DR ($) | Eliminated CR ($) | Consolidated ($) |
Cash | |||||
Accounts received | |||||
Inventory | |||||
Investment in SCo. | |||||
Land | |||||
Building and equipment | |||||
Less accumulated depreciation | |||||
Total assets | |||||
Account payable | |||||
Bonds | |||||
Common stocks | |||||
Retained earnings | |||||
NCI in NAin SCo. | |||||
Total liabilities | $1,250,000 |
c.
Concept introduction The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.
To prepare: The consolidate balance sheet on acquisition
c.
Explanation of Solution
The Consolidated balance sheet immediately following the acquisition is as follows:
P and Subsidiary | ||
Consolidated Balance sheet | ||
Particulars | Amount | Amount |
Cash | ||
Inventory | ||
Land | ||
Building and Equipment | ||
Less: Accumulated Depreciation | ||
Total assets | ||
Accounts Payable | ||
Bonds Payable | ||
Common Stock | ||
Retained earnings | ||
Non-controlling interest | ||
Total liabilities and stock holders’ equity |
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Chapter 3 Solutions
Advanced Financial Accounting
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