Homework Answers
| Particulars | Balance Sheet | Eliminations and Adjustments | Consolidated Balance Sheet | ||
| PP Company | SC Company | Debit | Credit | ||
| Cash | $ 1,61,000 | $ 1,61,000 | |||
| Accounts Receivable | $ 65,000 | $ 20,000 | $ 85,000 | ||
| Inventory | $ 80,000 | $ - | $ 10,000 | $ 80,000 | |
| Investment in SC | $ 4,00,000 | $ 1,60,000 | $ 4,00,000 | ||
| $ 3,40,000 | $ - | ||||
| Land | $ 1,00,000 | $ 40,000 | $ 40,000 | $ 1,40,000 | |
| Building | $ 2,50,000 | $ 2,00,000 | $ 1,70,000 | $ 4,50,000 | |
| Accumlated Depreciation | $ (80,000) | $ (50,000) | $ (1,30,000) | ||
| Equipment | $ 90,000 | $ 60,000 | $ 20,000 | $ 1,50,000 | |
| Accumlated Depreciation | $ (40,000) | $ (20,000) | $ (60,000) | ||
| Copy Rights | $ 50,000 | $ - | |||
| Good Will | $ 50,000 | $ - | |||
| Current Liabilties | $ (80,000) | $ (40,000) | $ (1,20,000) | ||
| Bonds Payable | $ (2,00,000) | $ (1,00,000) | $ (3,00,000) | ||
| Common Stock SC | $ (10,000) | $ 10,000 | $ (10,000) | ||
| Paid in Capital excess par SC | $ (90,000) | $ 90,000 | $ (90,000) | ||
| Retained Earnings SC | $ (60,000) | $ 60,000 | $ (60,000) | ||
| Common Stock PP | $ (20,000) | $ (20,000) | |||
| Paid in Capital excess PP | $ (1,80,000) | $ (1,80,000) | |||
| Retained Earnings PP | $ (46,000) | $ (46,000) | |||
| Total | $ 5,00,000 | $ 5,00,000 | $ 4,50,000 |
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b lem 2-10 (LO 3, 4, 5, 6, 7) 80% purchase goodwill worksheet. Use the rion...
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A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for...
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Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
The first page is the balance sheet and questions. The second page we are supposed to...
The
first page is the balance sheet and questions. The second page we
are supposed to fill in.
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000...
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EXERCISE 1-3 Estimated and Actual Goodwill LO 7 Passion Company is trying to decide whether or...
EXERCISE 1-3 Estimated and Actual Goodwill LO 7 Passion Company is trying to decide whether or not to acquire Desiree Inc. The following balance sheet for Desiree Inc. provides information about book values. Estimated market values are also listed, based upon Passion Company's appraisals. Desiree Desiree Inc. Inc. Book Market Values Values Current assets $260,000 $ 260,000 Property, plant & 650,000 equipment (net) _740,000 Total assets $910,000 $1,000,000 Total liabilities $400,000 $ 400,000 Common stock, 160,000 $10 par value Retained...
Problem 11-3 (LO 3, 5) Translate a trial balance and prepare a consolidation worksheet with excess of cost over bo...
Problem 11-3 (LO 3, 5) Translate a trial balance and prepare a consolidation worksheet with excess of cost over book value traceable to equipment. Due to increasing pressures to expand globally, Pueblo Corporation acquired a 100% interest in Soren- son Company, a foreign company, on January 1, 2016. Pueblo paid 12,000,000 FC, and Soren- son's equity consisted of the following: Common stock... Paid-in capital in excess of par ........ Retained earnings .......... Total......................................... 3,000,000 FC 2,000,000 4,200,000 9,200,000 FC On...
hlem 2-10 (LO3, 4, 5, 6, 7) 80% purchase goodsall worksheet. Use the rion for Parro's purchase of Saleen common stock Assume Dalto purchas information for Palto's purchase of Sa len common stock for $400,000 cash. The shares of the non controlling, inter each. Palco has the following balance sheet immediately after the pu worksheet. Use the preceding ne Palto purchases B0% of the oncontrolling interest have a fair diately after the purchase: value of $46 each. Palto has the...
On January 1, 20X9, Parker acquired 90% of Sanders for $200,000 plus $15,000 in acquisition costs. On the date of acquisition, Sanders had the following balance sheet Sanders Company Balance Sheet January 1, 20x9 Assets Liabilities and Equity Accounts Receivable $40,000 Current Liabilities $110,000 100,000 100,000 Inventory 160,000 Bonds Payable 60,000 Common Stock, $1 par 150,000 Paid-in Capital (20,000) Retained Earnings 50,000 (10,000) 30,000 $460,000 Total Liabilities and Equity Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation Goodwill Total Assets 50,000...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) $ $ $ $ $ Liabilities and Equity 110,000 Accounts Payable $ 200,000 Bonds Payable $ 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) $ 210,000 Paid-in Capital in excess of par $ Retained...
Exercise 2-11 Relation between Purchase Price, Goodwill, and Negative Goodwill LO 6 The following balance sheets were reported on January 1, 2019, for Peach Company and Stream Company: Peach Stream Cash $ 100,000 $ 20,000 Inventory 300,000 100,000 Equipment (net) 880,000 380,000 Total $1,280,000 $500,000 Total Liabilities $ 300,000 $100,000 Common stock, $20 par value 400,000 200,000 Other contributed capital 250,000 70,000 Retained earnings 330,000 130,000 Total $1,280,000 $500,000 Required: Appraisals reveal that the inventory has a fair value of...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
The
first page is the balance sheet and questions. The second page we
are supposed to fill in.
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000...
P2-23 Consolidated Worksheet at End of the First Year of Ownership (Equity Method) LO 2-3,2-5, 2-6 Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows: Paper Company Debit Credit Cash Accounts Receivable Inventory Investment in Scissor...
EXERCISE 1-3 Estimated and Actual Goodwill LO 7 Passion Company is trying to decide whether or not to acquire Desiree Inc. The following balance sheet for Desiree Inc. provides information about book values. Estimated market values are also listed, based upon Passion Company's appraisals. Desiree Desiree Inc. Inc. Book Market Values Values Current assets $260,000 $ 260,000 Property, plant & 650,000 equipment (net) _740,000 Total assets $910,000 $1,000,000 Total liabilities $400,000 $ 400,000 Common stock, 160,000 $10 par value Retained...
Problem 11-3 (LO 3, 5) Translate a trial balance and prepare a consolidation worksheet with excess of cost over book value traceable to equipment. Due to increasing pressures to expand globally, Pueblo Corporation acquired a 100% interest in Soren- son Company, a foreign company, on January 1, 2016. Pueblo paid 12,000,000 FC, and Soren- son's equity consisted of the following: Common stock... Paid-in capital in excess of par ........ Retained earnings .......... Total......................................... 3,000,000 FC 2,000,000 4,200,000 9,200,000 FC On...
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