Part A
No. |
Event |
General journal |
Debit |
Credit |
A |
1 |
Common stock |
44000 |
|
Retained earnings |
92000 |
|||
Income from Sword Company (82000+3000) |
85000 |
|||
Dividends declared |
23000 |
|||
Investment in Sword Company (balancing figure) |
198000 |
|||
(To record basic consolidation entry) |
||||
B |
2 |
Depreciation expense |
3000 |
|
Income from Sword Company |
3000 |
|||
(To record amortized excess value reclassification entry) |
||||
C |
3 |
Buildings and equipment |
33000 |
|
Goodwill |
23000 |
|||
Accumulated depreciation |
3000 |
|||
Investment in Sword Company (balancing figure) |
53000 |
|||
(To record the excess value (differential) reclassification entry) |
||||
D |
4 |
Accounts payable |
21000 |
|
Accounts receivable |
21000 |
|||
(To record entry to eliminate the intercompany accounts) |
||||
E |
5 |
Accumulated depreciation (70000-(4*3000)) |
58000 |
|
Buildings and equipment |
58000 |
|||
(To record the optional accumulated depreciation consolidation entry) |
Fair value = 192000
Book value = 136000
Excess value = 56000
Assigned to goodwill = 23000
Excess assigned to building and equipment = 56000-23000 = 33000
Amortization of excess assigned to building and equipment = 33000/11 = $3000
A-RECORD THE INITIAL INVESTMENT IN SWORD CO. Investment in Sword Co Cash B-RECORD PRINCE CORP’S...
1. A. Record the initial investment in Sword Co. B. Record Prince Corp's share of Sword Co.'s 20X7 income. C. Record Prince Corp's share of Sword Co.'s 20X7 dividend. D. Record the amortization of the excess acquisition price. 2. A. Record the basic consolidation entry. B. Record the amortized excess value reclassification entry. C. Record the excess value (differential) reclassification entry. D. Record the entry to eliminate the intercompany accounts. E. Record the optional accumulated depreciation consolidation entry. Prince Corporation...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 94,000 $ 39,000 Accounts Receivable 53,000 58,000 Inventory 188,000 108,000 Land 92,000 34,000 Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000 Dividends Declared 56,000...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $199,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 89,000 $ 30,000 Accounts Receivable 59,000 64,000 Inventory 178,000 100,000 Land 87,000 25,000 Buildings and Equipment 493,000 152,000 Investment in Sword Company 265,000 Cost of Goods Sold 493,000 250,000 Depreciation Expense 23,000 13,000 Other Expenses 65,000 65,000 Dividends Declared 64,000...
How to computer the Accumulated depreciation? Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 26,000 71,000 103,000 21,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales...
image are fine posted 3 times A 25.00 points Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Seord om $ 110 income from Sword Company St.O000 SROTO Additional Information 1. On January 1, 20X7. Sword reported net assets with a book value of $136,000 A total of $23,000 of the acquisition price is applied to goodwill, which was not...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 94,000 $ 39,000 Accounts Receivable 53,000 58,000 Inventory 188,000 108,000 Land 92,000 34,000 Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000 Dividends Declared 56,000...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $187,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 83,000 $ 34,000 Accounts Receivable 53,000 58,000 Inventory 180,000 119,000 Land 81,000 29,000 Buildings and Equipment 496,000 155,000 Investment in Sword Company 240,000 Cost of Goods Sold 496,000 251,000 Depreciation Expense 23,000 13,000 Other Expenses 64,000 64,000 Dividends Declared 51,000...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Additional Information On January 1, 20X7, Sword reported net assets with a book value of $129,000. A total of $30,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. Sword’s depreciable assets had an estimated economic life of 11 years on the date of combination. The...
Pie Corporation acquired 65 percent of Slice Company's common stock on r 31, 20X5, at underlying book value. The book values and fair values of Slice's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 35 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Deco Acco Required: a. How much did Pie pay to purchase its shares of Slice? (Round your answer...
Prince corporation holds 75% of the common stock of sword distributors Inc. purchased on Dec 31, 20x1 for $ 2,220,000 at the date of acquisition, sword reported common stock with a par value of $950000 additional paid in capital of $1300000 and retained earnings of $550000. the fair value of the non controlling interest at acquisition was $740000. the differential at acquisition was attributable to the following items: Inventory sold in 20x2 40000 Land 56000 Good will 64000 Total Differential...