Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:
Problem Company |
Solution Dairy |
|||||||
Assets | ||||||||
Cash & Receivables | $ | 144,000 | $ | 89,000 | ||||
Inventory | 228,000 | 109,000 | ||||||
Land | 86,000 | 54,000 | ||||||
Buildings & Equipment (net) | 401,000 | 234,000 | ||||||
Investment in Solution Dairy | 285,300 | |||||||
Total Assets | $ | 1,144,300 | $ | 486,000 | ||||
Liabilities & Stockholders’ Equity | ||||||||
Current Payables | $ | 65,000 | $ | 36,000 | ||||
Long-Term Liabilities | 295,300 | 163,000 | ||||||
Common Stock | 397,000 | 70,000 | ||||||
Retained Earnings | 387,000 | 217,000 | ||||||
Total Liabilities & Stockholders’ Equity | $ | 1,144,300 | $ | 486,000 | ||||
The fair value of the noncontrolling interest at the date of
acquisition was determined to be $31,700. The full amount of the
increase over book value is assigned to land held by Solution. At
the date of acquisition, Solution owed Problem $9,000 plus $1,200
accrued interest. Solution had recorded the accrued interest, but
Problem had not.
Required
Prepare a consolidated balance sheet worksheet. (Values in
the first two columns (the "parent" and "subsidiary" balances) that
are to be deducted should be indicated with a minus sign, while all
values in the "Consolidation Entries" columns should be entered as
positive values. For accounts where multiple adjusting entries are
required, combine all debit entries into one amount and enter this
amount in the debit column of the worksheet. Similarly, combine all
credit entries into one amount and enter this amount in the credit
column of the worksheet.)
Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies...
E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Problem Company Solution Dairy $ 70,000 90,000 40,000 220,000 Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity $ 130,000 210,000 70,000 390,000 270,000 $1,070,000 $ 80,000 200,000 400,000 390,000 $1,070,000 $420,000...
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $214,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 70,000 $ 24,000 Accounts Receivable 87,000 52,000 Inventory 101,000 64,000 Buildings and Equipment (net) 218,000 159,000 Investment in Faith Corporation Stock 214,000 Total Assets $ 690,000 $ 299,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 62,000 $ 34,000 Accounts Receivable 81,000 39,000 Inventory 103,000 75,000 Buildings and Equipment (net) 212,000 160,000 Investment in Faith Corporation Stock 207,000 Total Assets $ 665,000 $ 308,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent-owned subsidiar Hingle Company contained the following summarized amounts: AND H Balance Sheets December 31, 20X8 Doorst Hingle Corporation Company Assets Cash & Receivables Inventory Buildings & Equipment (net) Investment in Hingle Company Stock $ 100,000 s 42,000 161,000 101,000 312,000 291,000 239,800 Total Assets $ 812,800 $ 434,000 Liabilities & Equity Accounts Payable Common Stock Retained Earnings S 88,800 S 36,000 194,000 149,000 530,000 249,000 Total Liabilities...
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $186,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Blank Corporation Corporation Faith Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock 58,000 86,000 115,000 225,000 186,000 31,000 42,000 61,000 157,000 Total Assets $670,000 $291,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Eanings $...
I have no clue how to find the NCI based on NA in the first section and that of course carries into b. Any explanations would be greatly appreciatated.Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul’s book value. The balance sheets of the two companies for January 1, 20X1, are as follows (see pic):On January...
Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $299,700 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $333,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows Peanut Company Snoopy Company Debit Credit Debit Credit $162,000 180,000 205,000 351,900 211,000 710,000 188,000 44,000 216,000 84,000 $85,000 84,000 83,000 Cash Accounts Receivable Inventory Investment in...
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $305,100 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $339,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow: Peanut Company Snoopy Company Debit Credit Debit Credit Cash $ 168,000 $ 74,000 Accounts Receivable 172,000 66,000 Inventory 209,000 93,000 Investment in Snoopy Company 350,100 Land 214,000 99,000 Buildings...
On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $829,500 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled 355,500 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $127,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is...
Check my w Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $208,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation Faith Corporation Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Mecounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 60,000 86,000 101,000...