Prepare appropriate consolidation entries for 2021
Q: On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash…
A: Number of shares of slug corporation = Paid up value/par value per share
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: solution given Number of ABC co’s share 60000 Par value per share 40 Fair value of…
Q: Through the payment of $10,468,000 in cash, Drexel Company acquires voting control over Young…
A:
Q: Pauline Company issued 240,000 shares of P10 par common stock with a fair value of P5,100,000 for…
A: ACIP is the excess of par value over the actual cost of stock to the shareholders.
Q: Man merged with San Corporation in a business combination in which San issued 30,000 shares of its…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: After the merger, the retained earnings of the acquired company become retained earnings of the…
Q: Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the…
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Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: Correct option: 203,000 Incorrect option: 76,000 30,000 56,000
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: a. Journal entries to record acquisition of assets and liabilities.
Q: Paul Corporation acquired 80 percent of Saul Company on January 1, 2019, by issuing 118,000 shares…
A: Acqusition Cost It may be incurred several cost which are related with the Acqusition cost while…
Q: On January 1, 20x1, John Corp. acquired the identifiable net assets of Jose Corp. by paying cash of…
A: Lets understand the basics. When acquirer acquires the acquiree then they pay the consideration in…
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A: Preparation of consolidated income statement are as follows:
Q: Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity…
A:
Q: On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: Common stock is a type of security which provides ownership to the holder in the company. These…
Q: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…
A: value of Preferred stock = $ 424000 value of Common stock = $ 3960000 Fair value of Non…
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Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…
A: Solution:- 1)Preparation of journal entry to record the assets acquired and the liabilities assumed…
Q: With a cash payment of $15 million and by issuing 500,000 shares of their own $1 par value common…
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Q: On January 1, 2020, Holland Corporation paid $7 per share to a group of Zeeland Corporation…
A: A consolidation worksheet is a template that is used to create consolidated accounts for a parent…
Q: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: SOLUTION GOODWILL = PURCHASE PRICE OF TARGET COMPANY -(FAIR MARKET VALUE OF ASSETS - FAIR MARKET…
Q: Through the payment of $14,890,000 in cash, Drexel Company acquires voting control over Young…
A: Acquisition: An acquisition is when one firm acquires the majority of or all of the shares of…
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: Consolidation Worksheet: Consolidated financial statements of a parent and its subsidiaries is…
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: In the Acqusition cost of equity the expenses like legal and brokerage fees, due diligence, audit…
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A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Solution Calculation of purchase consideration paid by SD- Particulars To GM To SR Total Cash…
Q: Pauline Company issued 240,000 shares of P10 par common stock with a fair value of P5,100,000 for…
A: A business combination occurs in the case of merger and acquisition.
Q: Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the…
A: Consolidation statement:- When one company takes over another company's share by paying purchase…
Q: Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its…
A: The acquisition is said to be occured when a firm owns more than 50% share of the other company.
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A: Intra entity profit refers to the profit received from an intra entity transaction.
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Hence, option 3rd and 4th is correct
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: solution given Number of ABC co’s share 60000 Par value per share 40 Fair value of…
Q: Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity…
A: Earnings per share: Earnings per share represent the amount of income earned per share of…
Q: Hepner Corporation has the following stockholders’ equity accounts:The preferred stock is…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: On June 30, Malone Music Company exchanges 17,098 shares of its common stock for 100% of the…
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…
Q: On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash…
A: Non controlling interest is the value of shares owned by minority shareholders. Total Shares =…
Q: On January 1, Balanger Company buys 10 percent of the outstanding shares of its parent, Altgeld,…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its…
A: Prime company acquired voting common shares of Standard video corporation. Purchase consideration =…
Q: On January 1, Coldwater Company has a net book value of $2,174,000 as follows:Westmont Company…
A: Calculation of total fair value of Coldwater: Particulars Amount Consideration transferred for…
Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…
A: 1. Date Account Titles and Explanation Debit Credit 1 Jan Cash 92,000 Receivables 208,250…
Q: On January 1, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding…
A: The following computations are done to account for the consolidation of New Tune Co. and On-the Go…
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: According to IFRS 3, Acquisition-related costs incurred by the acquiring company to effect the…
Q: Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the…
A:
Q: Parent Company acquired 15% of Subsidiary Company’s common stock for P500,000 cash and carried the…
A: Acquisition of 15% share value is P500,000 The parent company has the 60% of shares in the…
Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…
A: Goodwill impairment loss=Carrying value of goodwill-Impaired fair value of goodwill
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: Credit balance of Share premium = 5,000 shares x (P125 - P100) = P125,000 Expenses relating to the…
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Q: Arryn, Inc., owns 95 percent of Stark Corporation’s voting stock. The acquisition price exceeded…
A: Calculate the total operating income.
Through the payment of $14,222,500 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary's 145,000 outstanding common shares ($40 par value) as well as all 26,000 shares of 5 percent, cumulative, $100 par value
During 2021, Young reports net income of $1,050,000 while declaring $550,000 in cash dividends. Drexel uses the initial value method to account for both of these investments.
Prepare appropriate consolidation entries for 2021. (If no entry is required for a transaction/event, select "No
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- G Company is considering the takeover of K Company whereby it will issue 8,000 common shares for all of the outstanding shares of K Company. K Company will become a wholly owned subsidiary of G Company. Prior to the acquisition, G Company had 15,000 shares outstanding, which were trading at $9.70 per share. The following information has been assembled: Current assets Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings Current assets Plant assets (net) Goodwill Investment in K Company Acquisition differential Current liabilities Long-term debt Common shares Retained earnings Carrying Amount $67,500 79,000 $146,500 $ 21,900 24,500 67,000 33,100 $146,500 G Company $ $ Fair Value $57,000 89,000 $ (b) Prepare G Company's consolidated balance sheet immediately after the combination using the worksheet approach and the acquisition method. (Leave no cells blank - be certain to enter "0" wherever required. Values in the first two columns and last column (the…Through the payment of $10,468,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary’s 100,000 outstanding common shares ($40 par value) as well as all 10,000 shares of 8 percent, cumulative, $100 par value preferred stock. Of the total payment, $3.1 million is attributed to the fully participating preferred stock with the remainder paid for the common. This acquisition is carried out on January 1, 2018, when Young reports retained earnings of $10 million and a total book value of $15 million. The acquisition-date fair value of the noncontrolling interest in Young’s common stock was $4,912,000. On this same date, a building owned by Young (with a 5-year remaining life) is undervalued in the financial records by $200,000, while equipment with a 10-year remaining life is overvalued by $100,000. Any further excess acquisition-date fair value is assigned to a brand name with a 20-year remaining life.During 2018, Young…Through the payment of $14,890,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 70% of the subsidiary;s 150,000 outstanding common shares ($40 par value) as well as all 30,000 shares of 6 percent, cumulative, $100 par value preferred stock. Of the total payment, $3.2 million is attributed to the fully partifipating preferred stock with the remainder paid for the common. This acquisition is carried out on January 1, 2021, when Young reports retained earnings of $10.1 million and a total book value of $19.1 million. The acquisition date fair value of the non-controlling interest in Young's common stock was $5,010,000. On the same date a building owned by Young with a six year remaining life is undervalued in the financial records by $210,000, well equipment with a five year remaining life is overvalued by $110,000. Any further access acquisition date fair value as a sign to a brand name with a 20 year remaining life. During 2021, Young…
- Pretzel Corporation acquired 100 percent of Stick Company’s outstanding shares on January 1, 20X7. Balance sheet data for the two companies immediately after the purchase follow: As indicated in the parent company balance sheet, Pretzel purchased $59,000 of Stick’s bonds from the subsidiary at par value immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent $8,000. On the date of combination, the book values and fair values of Stick’s assets and liabilities were the same. Record the basic consolidation entryPrime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Prime reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Prime in the amount of $20,000, which Prime included in its accounts receivable. Based on the preceding information, what amount of total assets was reported in the consolidated balance sheet immediately after acquisition? Multiple Choice A. $880,000 B. $650,000 C. $920,000 D. $750,000When it purchased Sutton, Inc. on January 1, 20X1, Pavin Corporation issued 500,000 shares of its $5 par voting common stock. On that date the fair value of those shares totaled $4,200,000. Related to the acquisition, Pavin had payments to the attorneys and accountants of $200,000, and stock issuance fees of $100,000. Immediately prior to the purchase, the equity sections of the two firms appeared as follows: Pavin Sutton Common stock $ 4,000,000 $ 700,000 Paid-in capital in excess of par 7,500,000 900,000 Retained earnings 5,500,000 500,000 Total $17,000,000 $2,100,000 Immediately after the purchase, the consolidated balance sheet should report retained earnings of: a. $6,000,000 b. $5,800,000 c. $5,500,000 d. $5,300,000
- B Co acquired 100% of the voting common shares of SCo, by issuing bonds with a par value and fair value of $75,000. Immediately prior to the acquisition, B reported total assets of $250,000, liabilities of $140,000, and stockholders' equity of $110,000. At that date, S reported total assets of $200,000, liabilities of $125,000, and stockholders' equity of $75,000 Based on the preceding information, what amount of total assets did � report in its balance sheet immediately after the acquisition? Select one: a. 325,000 b. 450,000 c. 375,000 d. 250,000 Answer..Beta Company acquired 100% of the voting common shares of Standard Video Corporation, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000 Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after acquisition? Select one: a. 350,000 b. 220,000 c. 370,000 d. 150,000Wooden Reed Inc. (WRI) issued 30,000 voting common shares to acquire all of the assets and liabilities of Creative Instrument Ltd. (CIL). On the acquisition date, WRI's shares were trading at $22 per share. After the transaction, CIL owned 20% of WRI's outstanding shares. The following information relates to CIL on the acquisition date: Cash Accounts receivable Inventory Property, plant, and equipment (net) Current liabilities Long-term debt Common shares Retained earnings WRI S $ S 75,000 180,000 220,000 880,000 1,355,000 75,000 235,000 100,000 945,000 $ 1,355,000 carrying value CIL $ 35,000 67,500 carrying value 125,000 350,000 $ 577,500 $ 25,000 125,000 165,000 262,500 $ 577,500 CIL fair value $ 35,000 69,500 147,000 388,000 25,000 125,000 Based on the information provided, which of the amounts below correctly reflect amounts that would appear on WRI's statement of financial position?
- Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 40 per share , pays 100000 cash, and payin direct and indirect cost of 75000 and 50000 respectively, determine the total amount of assets to be reported by Cardo Co. after the acquisitionKonin Corporation (KC) acquires a 75% interest in Bartovia Corporation (BC), in exchange for cash of €360,000. BC has 25% of its shares traded on an exchange; KC acquired the 60,000 non-publicly traded shares outstanding, at €6 per share. The fair value of BC’s identifiable net assets is €300,000; the shares of BC at the acquisition date are traded at €5 per share. •Under the full fair value approach, the non-controlling interest is measured based on the trading price of the shares of entity BC at the date control is obtained by KC (€5 per share) and a value of €100,000 is assigned to the 25% non-controlling interest, indicating that KC has paid a control premium of €60,000 (€360,000 – [€5 × 60,000]): •Equity Non-controlling interest in net assets €5×20,000 = €100,000 CAN YOU EXPLAIN HOW WE GOT THE ALL OF THE NUMBERS STEP BY STEP BECAUSE I STILL DON'T UNDERSTAND :)LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Amount Total Assets 15,670,000 Total Liabilities 4,575,000 Total Shareholder’s Equity ? The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: Patent on the product that is deemed worthless, P50,000. Goodwill of P150,000. Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equity balance is P9,500,000. On December 31, 2022 the following information were provided by NS Services Center: Net income of 400,000 was Patents remaining useful life is 4 Pre-existing goodwill presented above was impaired with a current value of 120,000. Dividends were declared…