Question

EXCEL CASE 2 CPA sklls On January 1. 2017. Hi-Speed.com acquired 100 percent of the common stock of Wi Free Co. for cash of $730,000. The consideration transferred was allocated among Wi-Free's net assets as follows: Page 151 Wi-Free fair value (cash paid by Hi-Speed) Book value of Wi-Free: $730,000 Common stock and additional paid-in capital (APIC) Retained earnings $130,000 370,000 500,000 230,000 Excess fair value over book value to 1-process R&D Computer software (overvalued) Internet domain name Goodwill In $ 75,000 (30.000) 120,000 65,000 65.000 At the acquisition date, the computer software had a 4-year remaining life, and the Internet domain name was estimated to have a 10-year remaining life. By the end of 2017, it became clear that the acquired in-process research and development would yield no economic benefits and Hi-Speed.com recognized an impairment loss. At December 31, 2018. Wi-Free's accounts payable included a $30,000 amount owed to Hi-Speed The December 31, 2018, trial balances for the parent and subsidiary follow: Hi-Speed.com Wi-Free Co. S (1.100,000) S (325.000) Revenues Cost of goods sold Depreciation expense 625,000 140.000 122,000 12.000 S (460,500) (180,000) S (1.552,500) S (450,000) (180,000) 50,000 Net income Retained earnings 1/1/18 Net income Dividends declared (460,500) 250,000 Retained earnings 12/31/18 S (1,763,000) (580,000) $ 1.034.000 345.000 Current assets Investment in Wi-Free Equipment (net) Computer software Internet domain name Goodwill 856,000 713,000 650,000 305,000 130,000 100,000 Total assets $ 3,253,000 880,000 Liabilities Common stock Additional paid-in capital Retained earnings 12/31/18 S (870.000) (170,000) (110,000) (20.000) (580.000) Total liabilities and equity S 3,253,000) (880,000) (500,000) (120,000) (1.763,000) Required a. Using Excel, prepare calculations showing how Hi-Speed derived the $856,000 amount for its investment in Wi-Free. b. Using Excel, compute consolidated balances for Hi-Speed and Wi-Free. Either use a worksheet approach or compute the balances directly

PLEASE ASNWER THIS QUESTION WITH THE EXPLANATION HOW U GET THE NUMBERS- I want to understand material and plus I have to enter everything in the EXCEL. Thank you!!!!

Answer 1