ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 4, Problem 4.28P

Consolidated Balance Sheet
Powder Company spent $240,000 to acquire all of Sawmill Corporation’s stock on January 1,20X2. The balance sheets of the two companies on December 31, 20X3, showed the following amounts:
  Chapter 4, Problem 4.28P, Consolidated Balance Sheet Powder Company spent $240,000 to acquire all of Sawmill Corporation’s

Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipmentwith a remaining economic life of 10 years from the date of acquisition. Assume Sawmill’s accumulated depreciation on the acquisition date was $25,000.
Required
a. Give the appropriate consolidation entry or entries needed to prepare a consolidated balancesheet as of December 31, 20X3.
b. Prepare a consolidated balance sheet worksheet as of December 31, 20X3.

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Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows:                                                   BOOK VALUE FAIR VALUE             Accounts receivable                        240,000              220,000             Inventory                                        290,000              320,000             Land                                                960,000           1,508,000             Buildings                                      1,020,000           1,392,000                   Total                                       2,510,000           3,440,000               Accounts payable                           270,000              270,000             Note payable                                   600,000              600,000             Common stock, $5 par                    420,000             Other contributed capital…
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ADVANCED FINANCIAL ACCOUNTING-ACCESS

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