a.
Introduction: A statement depicting the financial position of a company referred to as a
To calculate: The amount of total asset reported by Company G in individual sheet.
b.
Introduction: A statement depicting the financial position of a company referred to as a balance sheet. When such a statement presents the combined information for its holding company and its subsidiaries then it is regarded as a consolidated balance sheet.
To calculate: The amount of total asset reported by Company G in the consolidated balance sheet.
c.
Introduction: A statement depicting financial position of a company referred as balance sheet. When such statement presents the combined information for its holding company and its subsidiaries then it is regarded as consolidated balance sheet.
To calculate: The amount of total liabilities reported by Company G in consolidated balance sheet.
d.
Introduction: A statement depicting financial position of a company referred as balance sheet. When such statement presents the combined information for its holding company and its subsidiaries then it is regarded as consolidated balance sheet.
To calculate: The amount of shareholder’s equity reported by Company G in consolidated balance sheet.
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EBK ADVANCED FINANCIAL ACCOUNTING
- On January 2, 20X1 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 20X1 is as follows: Piron Seana Cash $150,000 $120,000 Inventories 320,000 400,000 Other current assets 500,000 500,000 Land 350,000 250,000 Plant assets-net 4,000,000 1,500,000 Total Assets $5,320,000 $2,770,000…arrow_forwardPrepare the set of consolidated financial statements at the end of the year.arrow_forwardColour Ltd. enters into a business combination with Pink Inc. on January 1, Year 1. To complete the business combination, Colour Ltd. issued 65,000 of its common shares which is currently trading at $9.00 per share. Colour is considered to be the clear acquirer. Costs associated with the business combination are: Acquisition cost of $6,500; and Costs of issuing shares of $8,000 Statement of financial position for the two companies immediately before the business combination are below: Colour Ltd. Pink Inc. Book Value Fair Value Book Value Fair Value Cash 165,500 165,500 63,050 63,050 Accounts Receivable 156,800 155,000 98,550 80,500 Inventory 388,770 402,500 123,450 134,000 Equipment (net) 458,550 408,900 60,800 65,500 Buildings (net) 335,000 446,500 249,580 309,450 Land 412,500 585,000 - Total 1,917,120 595,430 Current liabilities 185,560 185,560 41,160 41,160 Long-term debt 580,660 590,000 150,000 155,000 Common shares…arrow_forward
- 1. On January 2, 2022, Bread Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Dilan Corporation's outstanding common shares. Bread paid $15,000 to register and issue shares. Bread also paid $10,000 for the direct combination costs of the accountants. The fair value and book value of Dilan's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2022, is as follows: Cash Inventories Other current assets Land Plant assets-net Total Assets Accounts payable Bread Dilan $ 150,000 320,000 $ 120,000 400,000 500,000 500,000 350,000 250,000 4,000,000 1,500,000 $5,320,000 $2,770,000 $1,000,000 $ 300,000 Notes payable 1,300,000 660,000 Capital stock, $5 par 2,000,000 500,000 Paid-in capital 1,000,000 100,000 Retained Earnings 20,000 1,210,000 Total Liabilities & Equities $5,320,000 $2,770,000 Required: 1. Prepare Bread's general journal entry for the…arrow_forwardOn January 1, 20X3, Guild Corporation reported total assets of P470,000, liabilities of P270,000, and stockholders’ equity of P200,000. At that date, Bristol Corporation reported total assets of P190,000, liabilities of P135,000, and stockholders’ equity of P55,000. Following lengthy negotiations, Guild paid Bristol’s existing shareholders P44,000 in cash for 80 percent of the voting common shares of Bristol. Immediately after Guild purchased the Bristol shares, what amount of total liabilities was reported in the consolidated balance sheet? 405,000 378,000 270,000arrow_forwardOn January 1, 20X3, Guild Corporation reported total assets of P470,000, liabilities of P270,000, and stockholders’ equity of P200,000. At that date, Bristol Corporation reported total assets of P190,000, liabilities of P135,000, and stockholders’ equity of P55,000. Following lengthy negotiations, Guild paid Bristol’s existing shareholders P44,000 in cash for 80 percent of the voting common shares of Bristol. Immediately after Guild purchased the Bristol shares, What amount of stockholders’ equity was reported in the consolidated balance sheet? 255,000 244,000 211,000arrow_forward
- On January 1, 20X3, Guild Corporation reported total assets of P470,000, liabilities of P270,000, and stockholders’ equity of P200,000. At that date, Bristol Corporation reported total assets of P190,000, liabilities of P135,000, and stockholders’ equity of P55,000. Following lengthy negotiations, Guild paid Bristol’s existing shareholders P44,000 in cash for 80 percent of the voting common shares of Bristol. Immediately after Guild purchased the Bristol shares, what amount of total assets was reported in the consolidated balance sheet? P616,000 P470,000 P650,000arrow_forwardPamrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, 20X2, in exchange for 4,000 shares of Pamrod's $20 par value common stock. Balance sheet data for both companies just before the merger are given as follows: Balance Sheet Items Assets Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Total Assets Liabilities and Equities Accounts Payable Bonds Payable Common Stock: $20 par value $5 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Pamrod Manufacturing Book Value $ 70,000 100,000 200,000 50,000 600,000} (250,000) $ 779,000 $ 50,000 300,000 200,000 40,000 180,000 $ 770,000 Fair Value 70,000 100,000 375,000 80,000 540,000 $1,165,000 $ 50,000 310,000 Stafford Industries Book Value $ 30,000 60,000 100,000 40,000 400,000 (150,000) $ 480,000 $ 10,000 150,000 100,000 20,000 200,000 $ 480,000 Fair Value $ 30,000 60,000 160,000 30,000 350,000 $630,000 $ 10,000 145,000…arrow_forwardPrior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures: Common stock ($1 par value) Additional paid-in capital Retained earnings Taunton Eubanks $240,000 $64,000 120,000 30,000 370,000 14,000 Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks Assume that Taunton acquired Eubanks on January 1, 2020 and that Eubanks maintains a separate corporate existence. At what amount did Taunton record the investment in Eubanks? Multiple Choice Navt $62.000 $108.000 $170,500arrow_forward
- 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?arrow_forwardOn March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is a balance sheet data for the companies prior to the business combination and immediately following the combination: Ajax Chelsea Combined Corporation Corporation Cash $ $ 75,000 $ 35,000 $ 110,000 Accounts 92,000 30,000 122,000 receivable Inventory 45,000 43,000 98,000 Equipment (net) 420,000 150,000 620,000 Goodwill XXX Total $ 632,000 $ 258,000 XXX Assets Accounts $ 375,000 $ 125,000 $ 500,000 payable Common stock, $2 120,000 40,000 200,000 par Additional 85,000 30,000 245,000 paid-in capital Retained 52,000 63,000 XX earnings Total $ 632,000 $ 258,000 XXX Liabilities & Equity What balance in Retained earnings will the combined entity report immediately following the combination? Select one: O a. $ 52,000 O b. $ 0 O c. $ 63,000 O d. $ 115,000arrow_forwardHow much is the Consolidated Shareholder's Equity on December 31, 2022?arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning