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: A journal entry by equity method for the investment in S in the year 2008 .

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

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Chapter 17 Homework 12 1.42 points Saved Help Save & Exit Submit Check my work Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver eBook Machine setup Parts handling Quality inspections Hint Total budgeted overhead $ 25,000 (20 machine setups) 20,000 (16,000 parts) 30,000 (100 inspections) $ 75,000 Unit Information Product A Units produced 2,500 units Ask Direct materials cost $ 35 per unit Product Bi 500 units $ 45 per unit $ 55 per unit 2 per unit $ 65 per unit 2.50 per unit Print References Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity…

Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

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Answer 5

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

Answer 6

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

Answer 7

Chapter 3, Problem 3.29P

a.

To determine

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: A journal entry by equity method for the investment in S in the year 2008 .

Answer 8

a.

Expert Solution

Explanation of Solution

Particulars	Amount$	Amount$
Investment in S Dr.	296,000
Cash Cr.		296,000
(To record investment in S Co.)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

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.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

Answer 13

b.

To determine

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

Answer 14

b.

Expert Solution

Explanation of Solution

Income statement	P($)	S ($)	Eliminated DR ($)	Eliminated CR ($)	Consolidated ($)
Cash	109,000	25,000			134,000
Accounts received	65,000	37,000			102,000
Inventory	125,000	87,000			212,000
Investment in SCo.	296,000			296,000
Land	280,000	125,000			405,000
Building and equipment	875,000	250,000		24,000	1,101,000
Less accumulated depreciation	500,000	24,000	24,000		500,000
Total assets	1,250,000	500,000		296,000	1,454,000
Account payable	95,000	30,000			125,000
Bonds	250,000	100,000			350,000
Common stocks	625,000	250,000	250,000		625,000
Retained earnings	280,000	120,000	120,000		280,000
NCI in NAin SCo.				74,000	74,000
Total liabilities	$1,250,000	500,000	370,000		145,4000

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

c.

To determine

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.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

Answer 19

c.

To determine

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

Answer 20

c.

Expert Solution

Explanation of Solution

The Consolidated balance sheet immediately following the acquisition is as follows:

P and Subsidiary
Consolidated Balance sheet
Particulars	Amount($)	Amount($)
Cash		134,000
Accounts Receivable		102,000
Inventory		212,000
Land		405,000
Building and Equipment	1,101,000
Less: Accumulated Depreciation	(500,000)	601,000
Total assets		1,454,000
Accounts Payable		125,000
Bonds Payable		350,000
Common Stock		625,000
Retained earnings		280,000
Non-controlling interest		74,000
Total liabilities and stock holders’ equity		1,454,000

Answer 21

c.

Expert Solution

Answer 22

c.

Expert Solution

Answer 23

Expert Solution

Answer 24

Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.10Q

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: A journal entry by equity method for the investment in S in the year 2008 .

Concept explainers

Explanation of Solution

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

Explanation of Solution

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

Explanation of Solution

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Chapter 3 Solutions

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: A journal entry by equity method for the investment in S in the year 2008 .

Concept explainers

Explanation of Solution

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

Explanation of Solution

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

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions

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

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