ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 5, Problem 5.5E
Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the twocompanies immediately the Solution acquisition showed the following amounts:
The Pair value of thenoncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to kind held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solutionhad recorded the accrued interest, but Problem had not.
Required
Prepare and complete a consolidated balance sheet worksheet.
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Students have asked these similar questions
On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the
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Accounts Receivable
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PARAGRAPH CORPORATION AND SUBSIDIARY
Consolidated Balance Sheet
December 31, 20X8
Required:
Prepare a consolidated balance sheet for Paragraph at December 31, 20X8.
Sentence
Company
$ 20,000…
Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item
Phone Corporation
Smart Corporation
Cash
$ 58,300
$ 22,000
Accounts Receivable
109,000
49,000
Inventory
144,000
79,000
Land
73,000
36,000
Buildings & Equipment
426,000
266,000
Less: Accumulated Depreciation
(166,000)
(75,000)
Investment in Smart Corporation
97,300
Total Assets
$ 741,600
$ 377,000
Accounts Payable
$ 142,500
$ 26,000
Mortgage Payable
331,100
233,000
Common Stock
68,000
39,000
Retained Earnings
200,000
79,000
Total Liabilities & Stockholders’ Equity
$ 741,600
$ 377,000
At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…
Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item
Phone Corporation
Smart Corporation
Cash
$ 58,300
$ 22,000
Accounts Receivable
109,000
49,000
Inventory
144,000
79,000
Land
73,000
36,000
Buildings & Equipment
426,000
266,000
Less: Accumulated Depreciation
(166,000)
(75,000)
Investment in Smart Corporation
97,300
Total Assets
$ 741,600
$ 377,000
Accounts Payable
$ 142,500
$ 26,000
Mortgage Payable
331,100
233,000
Common Stock
68,000
39,000
Retained Earnings
200,000
79,000
Total Liabilities & Stockholders’ Equity
$ 741,600
$ 377,000
At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…
Chapter 5 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
Ch. 5 - Where is the balance assigned to the...Ch. 5 - Why must a noncontrolling interest be reported in...Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - Prob. 5.5QCh. 5 - Prob. 5.6QCh. 5 - Prob. 5.7QCh. 5 - Prob. 5.8QCh. 5 - Prob. 5.9QCh. 5 - Prob. 5.10Q
Ch. 5 - Under what Circumstances would a parent company...Ch. 5 - Prob. 5.12QCh. 5 - Prob. 5.13QCh. 5 - Prob. 5.14AQCh. 5 - Prob. 5.15AQCh. 5 - Consolidation Worksheet Preparation The newest...Ch. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5CCh. 5 - Prob. 5.1.1ECh. 5 - Prob. 5.1.2ECh. 5 - Prob. 5.1.3ECh. 5 - Prob. 5.1.4ECh. 5 - Prob. 5.2.1ECh. 5 - Prob. 5.2.2ECh. 5 - Prob. 5.2.3ECh. 5 - Prob. 5.2.4ECh. 5 - Prob. 5.2.5ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Balance Sheet Worksheet Problem Company owns 90...Ch. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8.1ECh. 5 - Prob. 5.8.2ECh. 5 - Prob. 5.8.3ECh. 5 - Prob. 5.8.4ECh. 5 - Prob. 5.8.5ECh. 5 - Prob. 5.8.6ECh. 5 - Prob. 5.8.7ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17AECh. 5 - Prob. 5.18AECh. 5 - Prob. 5.19PCh. 5 - Prob. 5.20PCh. 5 - Prob. 5.21.1PCh. 5 - Multiple-Choice Questions on Applying the Equity...Ch. 5 - Prob. 5.21.3PCh. 5 - Prob. 5.21.4PCh. 5 - Prob. 5.22PCh. 5 - Computation of Account Balances Pencil Company...Ch. 5 - Prob. 5.24PCh. 5 - Equity Entries with Differential On January 1,...Ch. 5 - Equity Entries with Differential Plug Corporation...Ch. 5 - Prob. 5.27PCh. 5 - Prob. 5.28PCh. 5 - Prob. 5.29P
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