Homework Answers
Answer:
(1) To eliminate intercompany dividends.
(2) To eliminate Investment in Shaw and establish noncontrolling interest account.
(3) To allocate the difference between implied and book value.
(4) To eliminate intercompany receivables and payables.
Computation and Allocation of Difference between Implied and Book Value Acquired
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Assignment 1 CL02 Place Company purchased 92% of the common stock of Shaw, Inc. on January...
Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for...
Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for $85,000. Sanchez Inc had capital stock of $70,000 and retained earnings of $12,000 at that time. Trial balances at the end of 2019 for the companies were: Sanchez $14,000 36,000 8,000 Perez $13,000 22,000 14,000 8,000 84,000 10,000 67.800 10,000 85,000 $ 313,800 6,000 37,000 Cash Accounts Receivable Inventory, 1/1 Advance to Sanchez Company Purchases Other Expenses Plant Assets Dividends Declared Investment in Sanchez...
Student: CL01 Assignment 1 Perez Company purchased 90% of the common stock of Sanchez, Inc. on...
Student: CL01 Assignment 1 Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for $85,000. Sanchez Inc had capital stock of $70,000 and retained earnings of $12,000 at that time. Trial balances at the end of 2019 for the companies were: Sanchez Perez Cash $13,000 S14,000 Accounts Receivable 22.000 36,000 Inventory, 1/1 14,000 8,000 Advance to Sanchez Company 8,000 Purchases 84,000 20.000 Other Expenses 10.000 16,000 Plant Assets 67,800 50,000 Dividends Declared 10.000 12,000...
On January 1, two years ago, Parkway Corporation purchased all of the outstanding common stock of...
On January 1, two years ago, Parkway Corporation purchased all
of the outstanding common stock of Shaw Company for $220,000 cash.
On that date, Shaw's net assets had a book value of $148,000.
Equipment with an 8-year life was undervalued by $20,000 in Shaw's
financial records. Shaw has a database that is valued at $52,000
and will be amortized over ten years. Shaw reported net income of
$25,000 in the year of acquisition and $32,500 in the following
year. Dividends...
On January 1, two years ago, Parkway Corporation purchased all of the outstanding common stock of...
On January 1, two years ago, Parkway Corporation purchased all
of the outstanding common stock of Shaw Company for $220,000 cash.
On that date, Shaw's net assets had a book value of $148,000.
Equipment with an 8-year life was undervalued by $20,000 in Shaw's
financial records. Shaw has a database that is valued at $52,000
and will be amortized over ten years. Shaw reported net income of
$25,000 in the year of acquisition and $32,500 in the following
year. Dividends...
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 Senor Company on January 1, 2009 for $57000. NOTE: COST METHOD USED BY PARENT Debit Jan. 1, 2009 Investment in Subsidiary-Sesnor 5,700,000 $ 5,700,000 The Sesnor Company balance aheet on 1/1/09 and 12/31/12 are as follows: Fair Value 120,000 $260,000 350,000 $ 450,000 1,275,000 $ 950,000 3,200,000 $ 3,450,000 1,000,000 1,000,000 250,000 120,000 $ 350,000 $1275,000 3,200,000 $2,500,000 Cash Accounts Receivable Net Plant Assets Other Assets $ 1,500,000 Total Assets...
Plexi Company purchased 85% of the outstanding common stock of Sesnor 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...
Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January...
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...
QUESTION 5 (PB12-3) The financial statements for CT Consulting Inc., a sister company to Cocao Excavating...
QUESTION 5 (PB12-3) The financial statements for CT Consulting Inc., a sister company to Cocao Excavating Inc. has is year-end on December 31, 2018 They are almost complete, except for the statement of cash flows. The completed Statement of Financial Position and Statement of Comprehensive Income are summarized below: 2020 2019 Statement of Financial Position Property and Equipment $2,100,000 $1,500,000 Less: Accumulated Depreciation (600,000) (450,000) Inventory 220,000 200,000 Accounts Receivable 150,000 200,000 Cash 630,000 650,000 $2,500,000 $2,100,000 Notes Payable Long-Term...
Plexi Company purchased 85% of the outstandingcommon stock of Sesnor Company on January 1, 209 for...
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...
Paid In Capital, Excess of Par Common Stock Short term Investments $ 117,000 50,000 Preferred stock,...
Paid In Capital, Excess of Par Common Stock Short term Investments $ 117,000 50,000 Preferred stock, 12%, $100 par value Common Stock, $5 par value Retained earnings, 1/1/18 400,000 1,650,000 125,000 Organizational expense Treasury Stock-common(2,000 shares) Merchandise Inventory 1,500 37,000 105,000 Purchases Gain on sale of investment Dividend Revenue 650,000 4,800 11,000 Accounts Payable Notes Payable Estimated income taxes payable 400,000 80,000 115,000 Paid-in-capital- Excess of Par, Preferred Stock Mortgage Payable Interest Expense 200,000 105,000 7,500 Interest Payable Dividends Payable ...
Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for $85,000. Sanchez Inc had capital stock of $70,000 and retained earnings of $12,000 at that time. Trial balances at the end of 2019 for the companies were: Sanchez $14,000 36,000 8,000 Perez $13,000 22,000 14,000 8,000 84,000 10,000 67.800 10,000 85,000 $ 313,800 6,000 37,000 Cash Accounts Receivable Inventory, 1/1 Advance to Sanchez Company Purchases Other Expenses Plant Assets Dividends Declared Investment in Sanchez...
Student: CL01 Assignment 1 Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for $85,000. Sanchez Inc had capital stock of $70,000 and retained earnings of $12,000 at that time. Trial balances at the end of 2019 for the companies were: Sanchez Perez Cash $13,000 S14,000 Accounts Receivable 22.000 36,000 Inventory, 1/1 14,000 8,000 Advance to Sanchez Company 8,000 Purchases 84,000 20.000 Other Expenses 10.000 16,000 Plant Assets 67,800 50,000 Dividends Declared 10.000 12,000...
On January 1, two years ago, Parkway Corporation purchased all
of the outstanding common stock of Shaw Company for $220,000 cash.
On that date, Shaw's net assets had a book value of $148,000.
Equipment with an 8-year life was undervalued by $20,000 in Shaw's
financial records. Shaw has a database that is valued at $52,000
and will be amortized over ten years. Shaw reported net income of
$25,000 in the year of acquisition and $32,500 in the following
year. Dividends...
On January 1, two years ago, Parkway Corporation purchased all
of the outstanding common stock of Shaw Company for $220,000 cash.
On that date, Shaw's net assets had a book value of $148,000.
Equipment with an 8-year life was undervalued by $20,000 in Shaw's
financial records. Shaw has a database that is valued at $52,000
and will be amortized over ten years. Shaw reported net income of
$25,000 in the year of acquisition and $32,500 in the following
year. Dividends...
Plexi Company purchased 85% of the outstanding common stock of Senor Company on January 1, 2009 for $57000. NOTE: COST METHOD USED BY PARENT Debit Jan. 1, 2009 Investment in Subsidiary-Sesnor 5,700,000 $ 5,700,000 The Sesnor Company balance aheet on 1/1/09 and 12/31/12 are as follows: Fair Value 120,000 $260,000 350,000 $ 450,000 1,275,000 $ 950,000 3,200,000 $ 3,450,000 1,000,000 1,000,000 250,000 120,000 $ 350,000 $1275,000 3,200,000 $2,500,000 Cash Accounts Receivable Net Plant Assets Other Assets $ 1,500,000 Total Assets...
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...
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...
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...
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