Homework Answers
Journal Entries
on the Books of Percy Company from 2014 to 2016
Year Particulars Dr. Cr.
2014 Investment in Subsidiary 406,000
Bank/Cash 406,000
(Being purchase of 80% voting shares of Song Company)
Investment in Subsidiary 48,480
Equity Income 48,480
(Being Equity Income booked)
Bank/Cash 19,040
Dividend Income 19,040
(Being Dividend received from Song Company)
2015 Bank/Cash 40,480
Dividend Income 40,480
(Being Dividend received from Song Company)
Investment in Subsidiary 43,120
Equity Income 43120
(Being Equity Income booked)
2016 Bank/Cash 29,040
Dividend Income 29,040
(Being Dividend received from Song Company)
Equity Income 45,760
Investment in Subsidiary 45,760
(Being Equity Loss booked)
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Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the...
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the...
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted to $496,800. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: Net Income (loss) Dividend distribution 2014 2015 2016 $60,600 $53,900 ($57,200 ) 23,800 50,600 36,300 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to...
Percy Company uses the complete equity method to record its investment. The difference between book value...
Percy Company uses the complete equity method to record its
investment. The difference between book value of equity acquired
and the value implied by the purchase price was attributed solely
to an excess of market over book values of depreciable assets, with
a remaining life of 10 years.
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted...
EXERCISE 4-1 Parent Company Entries, Liquidating Dividend LO 2 Perey Company purchased 80% of the outstanding...
EXERCISE 4-1 Parent Company Entries, Liquidating Dividend LO 2 Perey Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $387,000. At the time of purchase, Song Company's total stockholders' equity amounted to $475,000. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: 2016 Net income (loss) Dividend distribution 2014 563,500 25,000 2015 $52,500 50,000 (555,000) 35,000 Required: Prepare journal entries on the books of Perey Company from...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,954,600 3,908,000 757,000 1,553,500 2,010,600 1,844,200 1,609,200 Additional data on Singer Company for the four...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $352,500. On that date, Sales Company's stockholders' equity consisted of common stock, $100,400; other contributed capital, $40,500; and retained earnings, $143,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $153,600 and declared and paid a $50,300 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Only need help with Part C. On January 1, 2017, Plutonium Corporation acquired 80% of the...
Only need help with Part C.
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $244,100 cash. The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as we as the appraised values of its assets and liabilities by Plutonium's experts. Sulfurst Inc.'s Sulfurst Inc.'s Market Values Book Values Current assets $84,900 $84,900 Property, plant & equipment: Land 79,400 98,900 Building & machinery (net) 162,100 162,100 Total assets $326,400 Total...
B) Prepare the workpaper eliminating entries for a workpaper on December 31, 2015. Exercise 4-7 On...
B)
Prepare the workpaper eliminating entries for a workpaper
on December 31, 2015.
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $343,100. On that date, Sales Company's stockholders' equity consisted of common stock, $93,200; other contributed capital, $40,900; and retained earnings, $127,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value....
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted to $496,800. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: Net Income (loss) Dividend distribution 2014 2015 2016 $60,600 $53,900 ($57,200 ) 23,800 50,600 36,300 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to...
Percy Company uses the complete equity method to record its
investment. The difference between book value of equity acquired
and the value implied by the purchase price was attributed solely
to an excess of market over book values of depreciable assets, with
a remaining life of 10 years.
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted...
EXERCISE 4-1 Parent Company Entries, Liquidating Dividend LO 2 Perey Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $387,000. At the time of purchase, Song Company's total stockholders' equity amounted to $475,000. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: 2016 Net income (loss) Dividend distribution 2014 563,500 25,000 2015 $52,500 50,000 (555,000) 35,000 Required: Prepare journal entries on the books of Perey Company from...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,954,600 3,908,000 757,000 1,553,500 2,010,600 1,844,200 1,609,200 Additional data on Singer Company for the four...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $352,500. On that date, Sales Company's stockholders' equity consisted of common stock, $100,400; other contributed capital, $40,500; and retained earnings, $143,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $153,600 and declared and paid a $50,300 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Only need help with Part C.
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $244,100 cash. The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as we as the appraised values of its assets and liabilities by Plutonium's experts. Sulfurst Inc.'s Sulfurst Inc.'s Market Values Book Values Current assets $84,900 $84,900 Property, plant & equipment: Land 79,400 98,900 Building & machinery (net) 162,100 162,100 Total assets $326,400 Total...
B)
Prepare the workpaper eliminating entries for a workpaper
on December 31, 2015.
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $343,100. On that date, Sales Company's stockholders' equity consisted of common stock, $93,200; other contributed capital, $40,900; and retained earnings, $127,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value....
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