Prince Corporation acquired 100 percent of Sword Company on
January 1, 20X7, for $188,000. The trial balances for the two
companies on December 31, 20X7, included the following
amounts:
Prince Corporation | Sword Company | ||||||||||||||||
Item | Debit | Credit | Debit | Credit | |||||||||||||
Cash | $ | 94,000 | $ | 39,000 | |||||||||||||
Accounts Receivable | 53,000 | 58,000 | |||||||||||||||
Inventory | 188,000 | 108,000 | |||||||||||||||
Land | 92,000 | 34,000 | |||||||||||||||
Buildings and Equipment | 494,000 | 161,000 | |||||||||||||||
Investment in Sword Company | 217,000 | ||||||||||||||||
Cost of Goods Sold | 494,000 | 257,000 | |||||||||||||||
Depreciation Expense | 24,000 | 14,000 | |||||||||||||||
Other Expenses | 74,000 | 74,000 | |||||||||||||||
Dividends Declared | 56,000 | 26,000 | |||||||||||||||
Accumulated Depreciation | $ | 151,000 | $ | 70,000 | |||||||||||||
Accounts Payable | 64,000 | 28,000 | |||||||||||||||
Mortgages Payable | 189,000 | 141,000 | |||||||||||||||
Common Stock | 294,000 | 45,000 | |||||||||||||||
Retained Earnings | 348,000 | 84,000 | |||||||||||||||
Sales | 685,000 | 403,000 | |||||||||||||||
Income from Sword Company | 55,000 | ||||||||||||||||
$ | 1,786,000 | $ | 1,786,000 | $ | 771,000 | $ | 771,000 | ||||||||||
Additional Information
Required:
a. Prepare all journal entries recorded by Prince with regard to
its investment in Sword during 20X7. (If no entry is
required for a transaction/event, select "No journal entry
required" in the first account field.)
Journal entry worksheet
Note: Enter debits before credits.
|
Journal entry worksheet
Note: Enter debits before credits.
|
Note: Enter debits before credits.
|
Note: Enter debits before credits.
|
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 94,000 $ 39,000 Accounts Receivable 53,000 58,000 Inventory 188,000 108,000 Land 92,000 34,000 Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000 Dividends Declared 56,000...
Prince Corporation acquired 100 percent of Sword Company on
January 1, 20X7, for $192,000. The trial balances for the two
companies on December 31, 20X7, included the following amounts:
Additional Information
On January 1, 20X7, Sword reported net assets with a book value
of $129,000. A total of $30,000 of the acquisition price is applied
to goodwill, which was not impaired in 20X7.
Sword’s depreciable assets had an estimated economic life of 11
years on the date of combination. The...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $199,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 89,000 $ 30,000 Accounts Receivable 59,000 64,000 Inventory 178,000 100,000 Land 87,000 25,000 Buildings and Equipment 493,000 152,000 Investment in Sword Company 265,000 Cost of Goods Sold 493,000 250,000 Depreciation Expense 23,000 13,000 Other Expenses 65,000 65,000 Dividends Declared 64,000...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $187,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 83,000 $ 34,000 Accounts Receivable 53,000 58,000 Inventory 180,000 119,000 Land 81,000 29,000 Buildings and Equipment 496,000 155,000 Investment in Sword Company 240,000 Cost of Goods Sold 496,000 251,000 Depreciation Expense 23,000 13,000 Other Expenses 64,000 64,000 Dividends Declared 51,000...
Pie Corporation acquired 65 percent of Slice Company's common stock on r 31, 20X5, at underlying book value. The book values and fair values of Slice's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 35 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Deco Acco Required: a. How much did Pie pay to purchase its shares of Slice? (Round your answer...
1.
A. Record the initial investment in Sword Co.
B. Record Prince Corp's share of Sword Co.'s 20X7 income.
C. Record Prince Corp's share of Sword Co.'s 20X7 dividend.
D. Record the amortization of the excess acquisition price.
2.
A. Record the basic consolidation entry.
B. Record the amortized excess value reclassification entry.
C. Record the excess value (differential) reclassification
entry.
D. Record the entry to eliminate the intercompany accounts.
E. Record the optional accumulated depreciation consolidation
entry.
Prince Corporation...
How to computer the Accumulated
depreciation?
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 26,000 71,000 103,000 21,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales...
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A 25.00 points Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Seord om $ 110 income from Sword Company St.O000 SROTO Additional Information 1. On January 1, 20X7. Sword reported net assets with a book value of $136,000 A total of $23,000 of the acquisition price is applied to goodwill, which was not...
A-RECORD THE INITIAL INVESTMENT IN SWORD CO.
Investment in Sword Co
Cash
B-RECORD PRINCE CORP’S SHARE OF SWORD CO’S 2017 INCOME
Investment in Sword Co
Income from Sword Co
C-RECORD PRINCE CORP’S SHARE OF SWORD CO.’S 2017
DIVIDEND
Cash
Investment in Sword Co
D-RECORD THE AMORTIZATION OF THE EXCESS ACQUISITION
PRICE.
Income from Sword Co
Investment in Sword Co
Prepare all consolidating entries needed to prepare a full set
of consolidated financial statements for 20X7
A-RECORD THE BASIC CONSOLIDATION...
On January 1 2021. Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $224.000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $354,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $26,000. Alamar sold inventory costing $24,000 to Burks during 2021 for $37000 Burks used all of this merchandise in its operations during 2021 Prepare all of Alamar's 2021 journal entries to...