(A). Workings to determine the consolidated totals as on December 31 2021
Revenues
Particulars | Amount |
Revenues of Mergaronite | $ 6,20,000 |
Revenues of Hill | $2,54,000 |
Total | $8,74,000 |
Amortization Expense
Particulars | Amount |
Amortization Expense for 2021 ($ 94000/20 = $ 5,000) | $4,700 |
Total | $4,700 |
Building
Particulars | Amount |
Building of Mergaronite | $5,20,000 |
Building of Hill | $1,30,000 |
Over Valuation of Building | $29,600 |
Total | $6,79,600 |
Depreciation Expense
Particulars | Amount |
Depreciation Expense of Mergaronite | $1,14,000 |
Depreciation Expense of Hill | $60,000 |
Depreciation on the over Valuation of Building(29600/10) | $2,960 |
Depreciation on undervalued Equuipment (61000/5) | $12,200 |
Total | $189,160 |
Additional paid in capital
Particular | Amount |
Additional paid in capital of Mergaronite | $44,000 |
Total | $44,000 |
Note: Here we consider the additional paid in capital of parent company only. Because the Mergaronite tool over hill by issuing additional paid in capital in Mergaronite company.
Patent
Particulars | Amount |
Patent value as on 2017 | $94,000 |
Less : Amortization 2021 | $4,700 |
Less : Amortization for 4 years | $18,800 |
Total | $70,500 |
Customer list development by Hill Inc, is consider as patent each year Amortization expense is ($94000 /20) Amortization expense for ( 2017 , 2018,2019,2020 )Value of customer list as on 31st December 2021.
Cost of Goods sold
Particulars | Amount |
Cost of Goods sold of Mergaronite | $2,82,000 |
Cost of Goods sold of Hill | $1,14,000 |
Total | $3,96,000 |
Common Stock
Particulars | Amount |
Common Stock of Mergaronite | $3,04,000 |
Total | $3,04,000 |
Note: Here we consider the common stock of parent company only. Because the Mergaronite took over hill by issuing common stock in Mergaronite company.
Equipment
Particulars | Amount |
Equipment of Mergaronite | $1,92,000 |
Equipment of Hill | $2,54,000 |
Total | $4,46,000 |
Equipment that was undervalued by $61,000 need not do any adjustment. Equipment was undervalued on January 2017 and by the end of 2021 the 5 years period is completed.
The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December...
2. Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Hill Mergaronite $(600.000) 280,000 $(250,000 Revenues Cost of goods sold. . Depreciation expense . 100,000 50,000 120,000 NA Not given (900,000) 130,000 200,000 300,000 500,000 Investment income . (600,000) 40,000 Dividends declared. 690,000 90,000 140,000 Land. Buildings (net) Equipment (net) Liabilities ....
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Mergaronite Hill Revenues $(600,000) $(250,000) Cost of goods sold 280,000 100,000 Depreciation expense 120,000 50,000 Investment income Not given NA Retained earnings, 1/1/18 (900,000) (600,000) Dividends declared 130,000 40,000 Current assets 200,000 690,000 Land 300,000 90,000 Buildings (net) 500,000 140,000 Equipment (net) 200,000...
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Mergaronite Hill Revenues $(600,000) $(250,000) Cost of goods sold 280,000 100,000 Depreciation expense 120,000 50,000 Investment income Not given NA Retained earnings, 1/1/18 (900,000) (600,000) Dividends declared 130,000 40,000 Current assets 200,000 690,000 Land 300,000 90,000 Buildings (net) 500,000 140,000 Equipment (net) 200,000...
210000 75000 1102500 942500 Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted. $ Vega 500,000 200,000 40,000 60,000 Revenues Cost of goods sold Depreciation expense other expenses Equity in Vega's income Retained earnings, 1/1/2023 Dividends Current assets Land Building (net) Equipment (net) Liabilities Common stock Additional paid-in capital Green $ 900,000 360,000 140,000 100,000 ? 1,350,000 195,000 300,000 450,000 750,000 300,000 600,000 450.000 75,000 1,200,000 80,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Stanza (632,000) 158,000 258,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (796, 000) 284,100 153, eee Not given 80,000 (686,000) 408, eee 974,000 646,000 Not given (570,000) (600,000) ($20 par) (150,000) 60,000 (362,000) 612, eee 519, eee 1,004,000 (1,337, eee) (200,000) ($10...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Revenues $ (708,000) Cost of goods sold 252,800 Depreciation expense 159,000 Investment income Not given Dividends declared 80,000 Retained earnings, 1/1/21 (758,000) Current assets 400,000 Copyrights 1,060,000 Royalty agreements 690,000 Investment in Stanza Not given Liabilities (690,000) Common stock (600,000) ($20 par) Additional paid-in capital (150,000) Note: Parentheses indicate a credit balance. Stanza $ (632,000) 158,000 210,000 @ 60,000 (206,000) 536,000 419,000...
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Debits Credits Cash $ 38,000 Accounts receivable 82,000 Inventory 107,000 Interest payable $ 23,000 Investment in equity securities 70,000 Land 146,000 Buildings 365,000 Accumulated depreciation—buildings 113,000 Equipment 101,000 Accumulated depreciation—equipment 38,000 Copyright (net) 25,000 Prepaid expenses (next 12 months) 45,000 Accounts payable 78,000 Deferred revenue (next 12 months) 33,000 Notes payable 315,000 Allowance for uncollectible accounts 8,000 Common stock 330,000 Retained...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: $ Stanza $ (556,000) 139,000 262,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (776,000) 276,600 171,000 Not given 80,000 (658,000) 510,000 1,010,000 682,000 Not given (592,000) (600,000) ($20 par) (150,000) 60,000 (394,000) 514,000 378,500 1,118,000 0 (1,241,500) (200,000) ($10 par) (80,000)...
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Credits $ Debits 43,000 92,000 117,000 $ 28,000 80,000 156,000 390,000 118,000 111,000 Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 43,000 30,000 50,000 83,000 38,000 340,000...
Saved The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Debits 30,000 66,000 91,000 Credits Cash Accounts receivable Inventories Interest payable Marketable securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net of amortization) Prepaid expenses (next 12 months) Accounts payable Deferred revenues (next 12 months) Notes payable Allowance for uncollectible accounts 15,000 54,000 130,000 325,e00 105,000 85,000 30,000 17,e00 37,000 70,000 25,000 275,000 5,000 25e,eee 60,000 Common stock Retained...