Investment in Subsidiary Company-Sesnor Company | 110500 | ||||||||||
Retained Earnings 1/1 Current year-Parent | 110500 | ||||||||||
The above entry is made to incorporate the profits earned by subsidiary after its acquisition | |||||||||||
85% of (3200000-3070000) = $110500 | |||||||||||
Dividend Income | 212500 | ||||||||||
Dividend Declared Sub-Sesnor Company | 212500 | ||||||||||
The above entry is made to account for the dividend declared by the subsidiary | |||||||||||
85% of 250000 = $212500 | |||||||||||
Common Stock Sesnor Co. | 100000 | ||||||||||
APIC Sesnor Co. | 900000 | ||||||||||
Retained Earnings - Sesnor Co. | 3200000 | ||||||||||
Difference | 2635882 | ||||||||||
Investment in Subsidiary Company-Sesnor Company | 5810500 | ||||||||||
NCI | 1025382 | ||||||||||
The above entry is made at the time of Consolidation of Accounts of Subsidiary and it is used to eliminate own investment in Subsidiary and account for Non- Controlling Interest | |||||||||||
Investment In Subsidiary = 5700000+85% of(3200000-3070000) = $5810500 | |||||||||||
Non- Controlling Interest = 15% of (100000+900000+3200000+2635882) = $1025382 | |||||||||||
Land | 1500000 | ||||||||||
Goodwill | 1385882 | ||||||||||
Other liabilities | 250000 | ||||||||||
Difference | 2635882 | ||||||||||
Plexi Company purchased 85% of the outstanding common stock of Senor Company on January 1, 2009...
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...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $352,500. On that date, Sales Company's stockholders' equity consisted of common stock, $100,400; other contributed capital, $40,500; and retained earnings, $143,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $153,600 and declared and paid a $50,300 dividend....
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $445,950. At that time, Score Company had stockholders' equity consisting of common stock, $201,100; other contributed capital, $158,500; and retained earnings, $89,500. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Other Expenses Total Debits...
Parent Co paid $176,000 for 80% of the outstanding voting stock of Sub Co on January 1, 2018, when Sub Co’s stockholders’ equity consisted of $120,000 common stock and $60,000 retained earnings. This implied that the total fair value of Sub co is $220,000 ($176,000 / 80%). The company assigned the $40,000 excess fair value to previously unrecorded patents with a 10-year useful life. Parent Co’s $36,800 income from Sub Co for 2018 consisted of 80% of Sub Co’s $50,000...
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend....
Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows: Current assets $1,135,400 Plant and equipment 1,069,190 Land 175,250 Total assets $2,379,840 Liabilities $830,150 Common stock, $20 par value 825,300 Other contributed capital 441,330 Retained earnings 377,560 Total 2,474,340 Less treasury stock at cost, 4,725 shares 94,500 Total equities $2,379,840 Prepare the elimination entry required for the preparation of a...