ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 3, Problem 3.5E
On January 1, 20X3, Parade Corporation reported total assets of $470,000, liabilities of $270,000,and
Required
Immediately alter Parade purchased the Summer shares,
a. What amount of total assets did Parade report in its individual balance sheet?
b. What amount of total assets was reported in the consolidated balance sheet?
C. What amount of total liabilities was reported in the consolidated balance sheet?
d. What amount of stockholders’ equity was reported in the consolidated balance sheet?
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On January 1, 20X3, Parade Corporation reported total assets of $470,000, liabilities of $260,000, and stockholders' equity of
$210,000. At that date, Summer Corporation reported total assets of $185,000, llabilities of $131,000, and stockholders' equity of
$54,000. Following lengthy negotiations, Parade paid Summer's existing shareholders $43,200 in cash for 80 percent of the voting
common shares of Summer,
Required:
Immediately after Parade purchased the Summer shares,
a. What amount of total assets did Parade report in its individual balance sheet?
b. What amount of total assets was reported in the consolidated balance sheet?
c. What amount of total liabilities was reported in the consolidated balance sheet?
d. What amount of stockholders' equity was reported in the consolidated balance sheet?
a. Amount of total assets
b. Amount of total assets
c. Amount of total liabilities
d. Amount of stockholders' equity
On January 1, 20X3, Parade Corporation reported total assets of $473,000, liabilities of $271,000, and stockholders’ equity of $202,000. At that date, Summer Corporation reported total assets of $185,000, liabilities of $128,000, and stockholders’ equity of $57,000. Following lengthy negotiations, Parade paid Summer’s existing shareholders $45,600 in cash for 80 percent of the voting common shares of Summer.
Required:
Immediately after Parade purchased the Summer shares,
What amount of total assets did Parade report in its individual balance sheet?
What amount of total assets was reported in the consolidated balance sheet?
What amount of total liabilities was reported in the consolidated balance sheet?
What amount of stockholders’ equity was reported in the consolidated balance sheet?
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…
Chapter 3 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
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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