Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company. The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates. Requirement 1 The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

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Answer 3

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

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Answer 5

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

Answer 6

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

Answer 7

Chapter 9, Problem 9.25P

a.Elimination entries

To determine

Sale of shares subsidiary’s to non-affiliate:when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 1

The consolidation entries needed to prepare consolidated balance sheet for January 1, 20X3

Answer 8

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

Answer 9

b.Balance sheet work sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 2

The preparation of consolidated balance sheet work sheet as on January 1, 20X3.

Answer 10

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

Answer 11

c.Consolidated balance sheet

To determine

Sale of shares subsidiary’s to non-affiliate: when subsidiary sells shares to a party outside the economic entity increases total stockholders’ equity of the consolidated entity by the amount received by the subsidiary from sale. Such as sale increases the subsidiary’s total shares outstanding and reduces the percentage ownership held by the parent company.

The amount assigned to non-controlling interest and controlling interest is also affected by two factors 1. The number of shares sold to non-affiliates and 2. The price at which the shares are sold to non-affiliates.

Requirement 3

The preparation of consolidated balance sheet January 1 20X3

Answer 12

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Answer 15

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Prob. 9.3Q Ch. 9 - Prob. 9.4Q Ch. 9 - Prob. 9.5Q Ch. 9 - Prob. 9.6Q Ch. 9 - Prob. 9.7Q Ch. 9 - Prob. 9.8Q Ch. 9 - Prob. 9.9Q Ch. 9 - Prob. 9.10Q

Solution Summary: The author explains that sale of shares subsidiary’s to non-affiliate increases total stockholders’ equity of the consolidated entity and reduces percentage ownership held by the parent company.

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