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Consolidated Statement of financial position : Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC’s assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC accounts payable includes $100,000 owed to Steven PLC. Required: 1-Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary at December 31, 2020. 2-Prepare the elimination entries for the group at December 31, 2020

Consolidated Statement of financial position : Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC’s assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC accounts payable includes $100,000 owed to Steven PLC. Required: 1-Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary at December 31, 2020. 2-Prepare the elimination entries for the group at December 31, 2020

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Consolidated Statement of financial position : Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC’s assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC accounts payable includes $100,000 owed to Steven PLC. Required: 1-Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary at December 31, 2020. 2-Prepare the elimination entries for the group at December 31, 2020.
Johnson PLC | Johnson PLC Вook Value 300,000 400,000 Steven PLC Fair Value 300,000 390,000 80,000 200,000 Cash Accounts receivable, net Dividend's receivable Equipment-net 1,000,000 Building-net Land 160,000 160,000 -0- 2,000,000 1,600,000 1,200,000 2,500,000 1,800,000 800,000 1,000,000 1,400,000 ? -0- Investment in David PLC Total Assets Accounts payable Dividends рayable Notes payable Capital stock Retained earnings Total liabilities 7,780,000 500,000 8,670,000 500,000 3,480,000 80,000 100,000 100,000 200,000 1,000,000 2,000,000 4,180,000 400,000 1,000,000 1,800,000 1,000,000 7,780,000 3,480,000 and equity
Transcribed Image Text:Johnson PLC | Johnson PLC Вook Value 300,000 400,000 Steven PLC Fair Value 300,000 390,000 80,000 200,000 Cash Accounts receivable, net Dividend's receivable Equipment-net 1,000,000 Building-net Land 160,000 160,000 -0- 2,000,000 1,600,000 1,200,000 2,500,000 1,800,000 800,000 1,000,000 1,400,000 ? -0- Investment in David PLC Total Assets Accounts payable Dividends рayable Notes payable Capital stock Retained earnings Total liabilities 7,780,000 500,000 8,670,000 500,000 3,480,000 80,000 100,000 100,000 200,000 1,000,000 2,000,000 4,180,000 400,000 1,000,000 1,800,000 1,000,000 7,780,000 3,480,000 and equity
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