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Find Investment Balance 12/31/21 B. Consolidation Worksheet Entries -Prepare Entry *G -Prepare Entry S -Prepare Entry A -Prepare Entry I -Prepare Entry D -Prepare Entry E -Prepare Entry TI -Prepare Entry G

Find Investment Balance 12/31/21 B. Consolidation Worksheet Entries -Prepare Entry *G -Prepare Entry S -Prepare Entry A -Prepare Entry I -Prepare Entry D -Prepare Entry E -Prepare Entry TI -Prepare Entry G

Quickbooks Online Accounting
Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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A. Find Investment Balance 12/31/21 B. Consolidation Worksheet Entries -Prepare Entry *G -Prepare Entry S -Prepare Entry A -Prepare Entry I -Prepare Entry D -Prepare Entry E -Prepare Entry TI -Prepare Entry G
ducation.com/ext/map/index.html?_con=con&external_browser3D0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question- Tube Maps O News Translate mework Assignment Saved Problem 5-18 (Algo) (LO 5-3, 5-4, 5-5) On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $750,000, retained earnings of $300,000, and a noncontrolling interest fair value of $360,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method t account for its investment in Smashing. During the next two years, Smashing reported the following: Inventory Dividends Purchases from Declared $40,000 5e, 000 Net Income $200, 000 180,000 Corgan $150,000 170,000 2020 2021 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 40 percent of the current year purchases Smashing's a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing. Complete this question by entering your answers in the tabs below. Reauired A Reauired B < Prey 5 of 5 Next> В. * 51°F Partly ch ere to search acer PrSc SysRa Pause F12 Scr Lk F10 A Break 23 24 & 7 9. E R Y U H. K
Transcribed Image Text:ducation.com/ext/map/index.html?_con=con&external_browser3D0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question- Tube Maps O News Translate mework Assignment Saved Problem 5-18 (Algo) (LO 5-3, 5-4, 5-5) On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $750,000, retained earnings of $300,000, and a noncontrolling interest fair value of $360,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method t account for its investment in Smashing. During the next two years, Smashing reported the following: Inventory Dividends Purchases from Declared $40,000 5e, 000 Net Income $200, 000 180,000 Corgan $150,000 170,000 2020 2021 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 40 percent of the current year purchases Smashing's a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing. Complete this question by entering your answers in the tabs below. Reauired A Reauired B < Prey 5 of 5 Next> В. * 51°F Partly ch ere to search acer PrSc SysRa Pause F12 Scr Lk F10 A Break 23 24 & 7 9. E R Y U H. K
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