![P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment balances On January 1, 2016, Pop Corporation made the following investments: 1. Acquired for cash, 80 perce nt of the outstanding common stock of Son Corporation at $280 per share. The stockholders equity of Son on January I,2016, consisted of the following: Common stock, par value $100 Retained earnings $200,000 80,000 2. Acquired for cash, 70 percent of the outstanding common stock of Sam Corporation at S160 per share. The stockholders equity of Sam on January 1,2016, consisted of the following Common stock, par value $40 Capital in excess of par value Retained earnings $240,000 80,000 160,000 An Introduction to Consolidated Financial Statements 3. After these investments were made, Pop was able to exercise control over the operations of both](http://img.homeworklib.com/questions/eee2fc70-729d-11ea-be26-4347a7abf7d4.png?x-oss-process=image/resize,w_560)
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P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment...
E 4-2 Consolidated statement items with equity method Corporation purchased 80 percent of the outstanding voting...
E 4-2 Consolidated statement items with equity method Corporation purchased 80 percent of the outstanding voting common stock of Son Corporation on January 2, 2016 for $1,200,000 cash. Son's balance sheets on this date and on December 31, 2016. are as follows: SON CORPORATION BALANCE SHEETS January 2 December 31 Inventory $ 200.000 $ 80.000 Other current assets 200,000 320,000 Plant assets-net 800,000 880.000 Total assets $1,200,000 $1.280,000 Liabilities $ 200.000 $ 240.000 Capital stock 600.000 600,000 Retained earnings 400.000...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan....
Exercise 18-23 Transactions affecting retained earnings [LO18-6, 18-7, 18-8] The balance sheet of Consolidated Paper, Inc.,...
Exercise 18-23 Transactions affecting retained earnings [LO18-6, 18-7, 18-8] The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2017: Paid-in capital: Preferred stock, 7.5%, 88,000 shares at $1 par $ 88,000 Common stock, 383,800 shares at $1 par 383,800 Paid-in capital—excess of par, preferred 1,505,000 Paid-in capital—excess of par, common 2,555,000 Retained earnings 8,845,000 Treasury stock, at cost; 3,800 common shares (41,800 ) Total shareholders' equity $ 13,335,000 During 2018, several events and...
$500 100 0 Capital stock $1.200 500 1.700 Total On January 1, 2016, Pop Corporation acquired an 8...
$500 100 0 Capital stock $1.200 500 1.700 Total On January 1, 2016, Pop Corporation acquired an 80 percent interest in Son Corporation for $580,000. The excess fair value was due to Son's equipment being undervalued by $50,000 and unrecorded patents. The undervalued equi- ment had a five-year remaining useful life when Pop acquired its interest. Patents are amortized over 10 years. The income and dividends of Pop and Son are as follows (in thousands): Pop 2016 2017 $340 $350...
Pop Corporation acquired 70 percent of the outstanding voting stock of Son Corporation for $182,000 cash...
Pop Corporation acquired 70 percent of the outstanding voting stock of Son Corporation for $182,000 cash on January 1, 2016, when Son’s stockholders’ equity was $260,000. All the assets and liabilities of Son were stated at fair values (equal to book values) when Pop acquired its 70 percent interest. Financial statements of the two corporations at and for the year ended December 31, 2016, are summarized as follows (in thousands): Pop Son Combined Income and Retained Earnings Statements for the...
dends payable E3-9 Prepare stockholders' equity section of consolidated balance sheet one year after acquisition Pam...
dends payable E3-9 Prepare stockholders' equity section of consolidated balance sheet one year after acquisition Pam and Sun Corporations' balance sheets at December 31, 2015, are summarized as follows (in thousands): 26 of 33 Pam Sun Cash Other assets 1,020 800 $1,820 80 1,200 200 140 $1,820 240 700 Total assets Liabilities Capital stock, par $10 Additional paid-in capital Retained earnings Total equities $940 $ 140 700 60 40 $940 Pam acquired 80 percent of the voting stock of Sun...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a paren...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Prepare the journal entries for the transactions affecting stockholders' equity that occurred during 2018. Do not...
Prepare the journal entries for the transactions affecting stockholders' equity that occurred during 2018. Do not prepare the journal entry for closing net income to retained earnings. Assume that any share transactions were for cash. PII-6A. Retained Earnings: Transactions and Statement The stockholders' equity accounts of Raymund Corporation as of January 1 appear below; LO7, 8 MBC Common stock, $1 par value, 400,000 shares authorized; 160,000 shares issued and outstanding Paid-in capital in excess of par value Retained earnings $160,000...
Inferring consolidation entries from consolidated financial statements—Cost method Assume a parent company acquired a subsidiary on...
Inferring consolidation entries from consolidated financial statements—Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,312,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $300,000 20 years Patent 432,000 12 years Goodwill 580,000 Indefinite $1,312,000 The parent company uses the cost method of...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 400,000 Total stockholders' equity $ 1,580,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at...
E 4-2 Consolidated statement items with equity method Corporation purchased 80 percent of the outstanding voting common stock of Son Corporation on January 2, 2016 for $1,200,000 cash. Son's balance sheets on this date and on December 31, 2016. are as follows: SON CORPORATION BALANCE SHEETS January 2 December 31 Inventory $ 200.000 $ 80.000 Other current assets 200,000 320,000 Plant assets-net 800,000 880.000 Total assets $1,200,000 $1.280,000 Liabilities $ 200.000 $ 240.000 Capital stock 600.000 600,000 Retained earnings 400.000...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan....
$500 100 0 Capital stock $1.200 500 1.700 Total On January 1, 2016, Pop Corporation acquired an 80 percent interest in Son Corporation for $580,000. The excess fair value was due to Son's equipment being undervalued by $50,000 and unrecorded patents. The undervalued equi- ment had a five-year remaining useful life when Pop acquired its interest. Patents are amortized over 10 years. The income and dividends of Pop and Son are as follows (in thousands): Pop 2016 2017 $340 $350...
dends payable E3-9 Prepare stockholders' equity section of consolidated balance sheet one year after acquisition Pam and Sun Corporations' balance sheets at December 31, 2015, are summarized as follows (in thousands): 26 of 33 Pam Sun Cash Other assets 1,020 800 $1,820 80 1,200 200 140 $1,820 240 700 Total assets Liabilities Capital stock, par $10 Additional paid-in capital Retained earnings Total equities $940 $ 140 700 60 40 $940 Pam acquired 80 percent of the voting stock of Sun...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Prepare the journal entries for the transactions affecting stockholders' equity that occurred during 2018. Do not prepare the journal entry for closing net income to retained earnings. Assume that any share transactions were for cash. PII-6A. Retained Earnings: Transactions and Statement The stockholders' equity accounts of Raymund Corporation as of January 1 appear below; LO7, 8 MBC Common stock, $1 par value, 400,000 shares authorized; 160,000 shares issued and outstanding Paid-in capital in excess of par value Retained earnings $160,000...
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