Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value.
I have no clue how to find the NCI based on NA in the first section and that of course carries into b. Any explanations would be greatly appreciatated.
Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul’s book value. The balance sheets of the two companies for January 1, 20X1, are as follows (see pic):
On January 2, 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000.
Required:
a. Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Prepare a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value.
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $214,000....
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $214,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 70,000 $ 24,000 Accounts Receivable 87,000 52,000 Inventory 101,000 64,000 Buildings and Equipment (net) 218,000 159,000 Investment in Faith Corporation Stock 214,000 Total Assets $ 690,000 $ 299,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000....
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 62,000 $ 34,000 Accounts Receivable 81,000 39,000 Inventory 103,000 75,000 Buildings and Equipment (net) 212,000 160,000 Investment in Faith Corporation Stock 207,000 Total Assets $ 665,000 $ 308,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $186,000....
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $186,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Blank Corporation Corporation Faith Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock 58,000 86,000 115,000 225,000 186,000 31,000 42,000 61,000 157,000 Total Assets $670,000 $291,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Eanings $...
Check my w Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31,...
Check my w Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $208,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation Faith Corporation Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Mecounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 60,000 86,000 101,000...
The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent-owned subsidiar Hingle Company...
The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent-owned subsidiar Hingle Company contained the following summarized amounts: AND H Balance Sheets December 31, 20X8 Doorst Hingle Corporation Company Assets Cash & Receivables Inventory Buildings & Equipment (net) Investment in Hingle Company Stock $ 100,000 s 42,000 161,000 101,000 312,000 291,000 239,800 Total Assets $ 812,800 $ 434,000 Liabilities & Equity Accounts Payable Common Stock Retained Earnings S 88,800 S 36,000 194,000 149,000 530,000 249,000 Total Liabilities...
Proud Corporation acquired 80 percent of Spirited Company’s voting stock on January 1, 20X3, at underlying...
Proud Corporation acquired 80 percent of Spirited Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows: ...
Pizza Corporation acquired 80 percent ownership of SliceProducts Company on January 1, 20X1, for $155,000....
Pizza Corporation acquired 80 percent ownership of Slice
Products Company on January 1, 20X1, for $155,000. On that date,
the fair value of the noncontrolling interest was $38,750, and
Slice reported retained earnings of $46,000 and had $99,000 of
common stock outstanding. Pizza has used the equity method in
accounting for its investment in Slice. Trial balance data for the
two companies on December 31, 20X5, are as follows:Additional InformationOn the date of combination, the fair value of Slice's
depreciable...
Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book...
Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Sugar Company. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows: Item Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Jan. 1, 20X3 Dec. 31, 20x3 $ 74,500 90,000 116,000 47,000 519,000 106,500...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial...
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...
Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date...
Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $438,000 and $172,000, respectively, common stock outstanding of $86,000, and retained earnings of $180,000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $17,000, and inventories, which had decreased by $8,000. Required: a. Prepare the following consolidation entries required...
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $186,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Blank Corporation Corporation Faith Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock 58,000 86,000 115,000 225,000 186,000 31,000 42,000 61,000 157,000 Total Assets $670,000 $291,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Eanings $...
Check my w Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $208,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation Faith Corporation Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Mecounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 60,000 86,000 101,000...
The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent-owned subsidiar Hingle Company contained the following summarized amounts: AND H Balance Sheets December 31, 20X8 Doorst Hingle Corporation Company Assets Cash & Receivables Inventory Buildings & Equipment (net) Investment in Hingle Company Stock $ 100,000 s 42,000 161,000 101,000 312,000 291,000 239,800 Total Assets $ 812,800 $ 434,000 Liabilities & Equity Accounts Payable Common Stock Retained Earnings S 88,800 S 36,000 194,000 149,000 530,000 249,000 Total Liabilities...
Pizza Corporation acquired 80 percent ownership of Slice
Products Company on January 1, 20X1, for $155,000. On that date,
the fair value of the noncontrolling interest was $38,750, and
Slice reported retained earnings of $46,000 and had $99,000 of
common stock outstanding. Pizza has used the equity method in
accounting for its investment in Slice. Trial balance data for the
two companies on December 31, 20X5, are as follows:Additional InformationOn the date of combination, the fair value of Slice's
depreciable...
Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Sugar Company. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows: Item Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Jan. 1, 20X3 Dec. 31, 20x3 $ 74,500 90,000 116,000 47,000 519,000 106,500...
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...
Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $438,000 and $172,000, respectively, common stock outstanding of $86,000, and retained earnings of $180,000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $17,000, and inventories, which had decreased by $8,000. Required: a. Prepare the following consolidation entries required...
Most questions answered within 3 hours.
-
There are balls numbered 1, 2, 3, 4, 5, 6, 7 in a box, 2 balls...
asked 1 hour ago -
Based on the mutual fund NAVs below, how many shares will $600
buy you, if you...
asked 37 minutes ago -
what effect on total protein concentration would you
expect to see during dehydration? explain your reasoning.
asked 1 hour ago -
You are the operations manager of a firm that uses the
continuous review inventory control system....
asked 4 hours ago -
Cost and fair value data for the trading debt securities of
Wildhorse Company at December 31,...
asked 6 hours ago -
In a population of jaguars, a gene with two alleles encodes the
fur color. Allele B...
asked 7 hours ago -
Two copper wires, one 1.80 times the diameter of the other, have
the same current flowing...
asked 7 hours ago -
9. In 2003 the price of ‘home heating oil’ substantially
increased during the harsh winter. In...
asked 7 hours ago -
Match the key paradoxes of negotiation.
Claiming Value
Sticking by your principles
Sticking with your strategy...
asked 8 hours ago -
Question text Suppose a sample of 28 observations is taken from
a population, and the sample...
asked 9 hours ago -
The mayor of a small town estimates that 33% of the
residents in the town favor...
asked 9 hours ago -
1. True or false: According to the Gordon Growth Model, firms
that pay dividends will always...
asked 10 hours ago