EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 4, Problem 4.12E
1.
To determine
Introduction: Consolidation is the merger or acquisition of small companies into a single large one. In financial accounting, consolidation means an aggregation of financial statements of a group company/different entities and reported at the group level.
To prepare:
2.
To determine
Introduction: Consolidation is the merger or acquisition of small companies into a single large one. In financial accounting, consolidation means aggregation of financial statement of a group company/different entities and reported at group level.
To prepare: Difference in Consolidation entries and other Journal Entries
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Accounting
Company A acquires Company B on May 1, 2016. Please prepare the journal
entry to record Consideration Transferred.
Total assets acquired
28,783
Total liabilities assumed
9,978
Net assets acquired
18,805
Non-controlling interest
(155)
Total net consideration transferred
18,650
Common Stock
Other capital
Shares issued for
merger
104
19,696
Prepare the set of consolidated financial statement of financial position on the date of acquisition by showing the consolidation procedures.
On 1 January 2000, K Ltd acquired 60% of the shares in V ltd for $400,000. Consideration took
the form of cash $300,000, and shares with a fair value of $200,000
At that date the owner's equity of V ltd comprised
Shares capital
$300,000
Retained earnings
$200,000
$100,000
Revaluation surplus
Total
$600,000
On 1 January 2000, the fair values of all assets and liabilities of V Ltd were recorded in fair value
with the exception of inventory which had a fair value $50,000 greater than book value. The
inventory was all sold before 30 June 2000.
• Both companies use the periodic method to account for inventory.
●
The company income tax rate is 30%.
K Ltd has a financial year end of 30 June.
●
The fair value of the non-controlling interest is estimated to be $260,000.
K Ltd uses the 100% goodwill method to measure NCI.
Chapter 4 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 4 - When is the carrying value of the investment...Ch. 4 - What is a differential? How is a differential...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - Prob. 4.6QCh. 4 - Prob. 4.7QCh. 4 - Prob. 4.8QCh. 4 - Prob. 4.9QCh. 4 - Prob. 4.10Q
Ch. 4 - Prob. 4.11QCh. 4 - What determines whether the balance assigned to...Ch. 4 - What does the termpushdown accountingmean?Ch. 4 - Under what conditions is push-down accounting...Ch. 4 - Prob. 4.15QCh. 4 - Prob. 4.2CCh. 4 - Prob. 4.3CCh. 4 - Prob. 4.4CCh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10.1ECh. 4 - Prob. 4.10.2ECh. 4 - Prob. 4.10.3ECh. 4 - Prob. 4.10.4ECh. 4 - Prob. 4.10.5ECh. 4 - Prob. 4.11.1ECh. 4 - Prob. 4.11.2ECh. 4 - Prob. 4.11.3ECh. 4 - Prob. 4.11.4ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18.1ECh. 4 - Prob. 4.18.2ECh. 4 - Prob. 4.18.3ECh. 4 - Prob. 4.18.4ECh. 4 - Prob. 4.18.5ECh. 4 - Prob. 4.18.6ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24AECh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Consolidated Balance Sheet Powder Company spent...Ch. 4 - Prob. 4.29PCh. 4 - Prob. 4.30PCh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32PCh. 4 - Prob. 4.33PCh. 4 - Prob. 4.34PCh. 4 - Prob. 4.35PCh. 4 - Prob. 4.36PCh. 4 - Prob. 4.37AP
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