Homework Answers
1
| Real entry to record the investment in books of parent company. | ||||
| Date | Particulars | Debit | Credit | |
| Jan 1,2012 | Investment in Sloppy Jackson Company A/c | 9,00,000.00 | ||
| To cash | 9,00,000.00 | |||
| (Being Amount invested in Jackson Company has been Recorded) | ||||
2
| Preparation of CAD | ||||
| Date | Particulars | Debit | Credit | |
| Amount Invested in Jackson co | 900000 | |||
| Less: 80% Value of Jackson Company on Invested date | ||||
| Common stock | 50,000 | |||
| APIC | 3,50,000 | |||
| Retained earnings | 575000 | |||
| 9,75,000 | ||||
| 80% Book Value of Assets (975,000*80%) | 7,80,000 | 7,80,000 | ||
| Excess amount Invested over Book value | 1,20,000 | |||
| Less: Excess amount attributable to increase in Land | -64000 | |||
| (80% (415,000-335,000) =64,000 | ||||
| Difference (Good will) | 56,000 | |||
3
| Working Paper Adjustment Entry on January 1,2012 | ||||
| Date | Particulars | Debit | Credit | |
| Capital Stock (Sloppy Jackson) | 50,000.00 | |||
| APIC (Sloppy Jackson) | 3,50,000.00 | |||
| RE (Sloppy Jackson) | 5,75,000.00 | |||
| UnAmortised Excess | 1,20,000.00 | |||
| To Investment in Sloppy Jackson | 9,00,000.00 | |||
| To Non Control Interest | 1,95,000.00 | |||
| (Journal entry for Consolidation Working Paper Adjustment Entry) | ||||
4
| Consolidation working paper | ||||||||||||||
| Date | ||||||||||||||
| Assets | Papa Burger Inc | Sloppy Jac | Debit | Credit | NCI | Consolidated Balance | ||||||||
| Cash | 2,50,000.00 | 1,50,000.00 | 4,00,000.00 | |||||||||||
| Account receivables | 2,50,000.00 | 1,50,000.00 | 4,00,000.00 | |||||||||||
| Inventory | 2,00,000.00 | 2,50,000.00 | 4,50,000.00 | |||||||||||
| Investment in subsidary | 9,00,000.00 | 9,00,000.00 | ||||||||||||
| Equipment | 22,00,000.00 | 7,40,000.00 | 29,40,000.00 | |||||||||||
| Building | 5,50,000.00 | 3,50,000.00 | 9,00,000.00 | |||||||||||
| Land | 1,20,000.00 | 3,35,000.00 | 80,000.00 | 16,000.00 | 5,35,000.00 | |||||||||
| Good will (Diff) | 56,000.00 | 56,000.00 | ||||||||||||
| Total Assets | 44,70,000.00 | 19,75,000.00 | 56,81,000.00 | |||||||||||
| Liabilities | ||||||||||||||
| Accounts payable | 5,00,000.00 | 2,00,000.00 | 7,00,000.00 | |||||||||||
| Short term Debt | 8,50,000.00 | 8,00,000.00 | 16,50,000.00 | |||||||||||
| Mortogage payable | 21,00,000.00 | 21,00,000.00 | ||||||||||||
| Total Liabilities | 34,50,000.00 | 10,00,000.00 | 44,50,000.00 | |||||||||||
| Equity | ||||||||||||||
| Common stock Papa | 60,000.00 | 60,000.00 | ||||||||||||
| Common stock Sloppy | 50,000.00 | 50,000.00 | ||||||||||||
| APIC papa | 6,10,000.00 | 6,10,000.00 | ||||||||||||
| APIC Sloppy | 3,50,000.00 | 3,50,000.00 | ||||||||||||
| RE papa | 3,50,000.00 | 3,50,000.00 | ||||||||||||
| RE Sloppy | 5,75,000.00 | 5,75,000.00 | ||||||||||||
| NCI Common stock | 10,000.00 | |||||||||||||
| NCI - APIC | 70,000.00 | |||||||||||||
| NCI - RE | 1,15,000.00 | 1,95,000.00 | ||||||||||||
| NCI | 2,11,000.00 | 2,11,000.00 | ||||||||||||
| Total Equity | 10,20,000.00 | 9,75,000.00 | 9,75,000.00 | 1,95,000.00 | 2,11,000.00 | 12,31,000.00 | ||||||||
| Total equity and Liabilities | 44,70,000.00 | 19,75,000.00 | 2,11,000.00 | 56,81,000.00 | ||||||||||
Add Answer to:
Case: Papa Burger Inc. has determined that they need to add to their product line. They...
Case: Papa Burger Inc. has determined that they need to add to their product line. They...
Case: Papa Burger Inc. has determined that they need to add to their product line. They have decided to acquire an interest in Sloppy Joe Cormpany that would provide significant infuence and control. The following are the purchase details: On January 1, 2010 the following took place Parent Co. paid Parent Purchased X% of Sub. 1 Complete the REAL ENTRY to record the investment. It has been determined that the Parent Company has signiftant infuence and control Date Account Debit...
Cas Papa Burger Inc,has deternined hat the need to ad to their product inc.Thcy have deestin...
Cas Papa Burger Inc,has deternined hat the need to ad to their product inc.Thcy have deestin Sloppy Joe Company that would provide significant nfuence and control. The following are the purchase details: On January 1, 2010 the following toolk place Parent Co. paid $ 900,000 Parent Purchased X% of Sub. 1 Complete the REAL ENTRY to record the investment.It has been determined that the Parent Company has signifiant infuence and control Deitr Cledit Date Account Credit Additional Base Information: Subsidiary...
need help... please fix the errors as soon as possible. Thanks in advance! Pushdown Accounting Assume...
need help... please fix the errors as soon as possible. Thanks
in advance!
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need help asap... please fix the errors asap Pushdown Accounting Assume a parent company acquires its...
need help asap... please fix the errors asap
Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of the outstanding voting shares of the investee. On the acquisition date, subsidiary's assets and liabilities have individual fair values that equal their book values, except for property equipment with a fair value greater than book value by $150,000 and license with a fair value greater than book value by $250,000. The parent and subsidiary have the following...
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Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses...
Use negative signs with answers in the
Consolidated column for Cost of goods sold, Operating expenses and
Dividends.
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Case: Papa Burger Inc. has determined that they need to add to their product line. They have decided to acquire an interest in Sloppy Joe Cormpany that would provide significant infuence and control. The following are the purchase details: On January 1, 2010 the following took place Parent Co. paid Parent Purchased X% of Sub. 1 Complete the REAL ENTRY to record the investment. It has been determined that the Parent Company has signiftant infuence and control Date Account Debit...
Cas Papa Burger Inc,has deternined hat the need to ad to their product inc.Thcy have deestin Sloppy Joe Company that would provide significant nfuence and control. The following are the purchase details: On January 1, 2010 the following toolk place Parent Co. paid $ 900,000 Parent Purchased X% of Sub. 1 Complete the REAL ENTRY to record the investment.It has been determined that the Parent Company has signifiant infuence and control Deitr Cledit Date Account Credit Additional Base Information: Subsidiary...
need help... please fix the errors as soon as possible. Thanks
in advance!
Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of the outstanding voting shares of the investee. On the acquisition date, subsidiary's assets and liabilities have individual fair values that equal their book values, except for property equipment with a fair value greater than book value by $150,000 and license with a fair value greater than book value by $250,000. The parent...
need help asap... please fix the errors asap
Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of the outstanding voting shares of the investee. On the acquisition date, subsidiary's assets and liabilities have individual fair values that equal their book values, except for property equipment with a fair value greater than book value by $150,000 and license with a fair value greater than book value by $250,000. The parent and subsidiary have the following...
Plexi Company purchased 85% of the outstanding common stock of Sesnor Company on January 1, 2009 for ss,70am NOTE COST METHOD USED BY PARENT Credit REAL Entn Jan. 1, 2009 Investment in Subsidiary -Sesnor 5,700,000 $ 5,700,000 The Sesnor Company bslance shet on i/i/09 and 12/31/12 are as follows: Fair Value 120,000 $ 260,000 350,000 450,000 1,275,000 $ 950,000 3200,000 $ 3,450,000 1,000,000 1,000,000 120,000 $ 350,000 1,275,000 $3,200,000 $2,500,000 Accounts Recelvable Net Plant Assets 1,500,000 Other Assets Total Assets...
Plexi Company purchased 85% of the outstandingcommon stock of Sesnor Company on January 1, 209 for ss,moo NOTE COST METHOD USED BY PARENT Credit Investment in Subsidiary-Sesnor 5,700,000 in Jan. 1, ZO 9 $5,700,000 The SesnorCompanybatndutettonw09and unna are as follows: Fair Value 120,000 $ 260,000 350,000 $ 450,000 1,275,000 950,00o 3,200,000 $ 3,450,000 $1,000000 1,000,000 250,000 $120,000 $350,000 $1,275,000 $ 3,200,000 $2,500,000 Cash Accounts Receivable Net Plant Assets $ 1,500,000 Other Assets Total Assets Accounts Payable ies 1,375,000 1,150,000 500,000...
Plexi Company purchased 85% of the outstanding common stock of SesnorCompany on lanuary , mort,mon. NOTE COST METHOD USED BY PARENT S sooo Jan. 1, ZOS investment in Subsidiary . Sesnor $5,700,000 The Sesnor Compeny balanccahet on 1/1/09 and 12/31/12 are as follows: Fair Value Cash 120,000 260,000 350,000 $ 450,000 1,275,000 950,000 $ 3,200,000 3,450,000 1,000,000 1,000,000 120,000 Accounts Receivable Net Plant Assets Other Assets 1,275,000 $ 3,200,000 $ 2,500,000 1,500,000 Total Assets 45,000 5 6360,000 Accounts Payable Other...
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Use negative signs with answers in the
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