Jaynes Inc. acquired all of Aaron Co's common stock on January 1, 2012, by ng 11,000 shares of S1 par value com Jees sharee had a 517 per share fair value. On that date, Aaron reported at book value of $120,000 (common stock $50,000 and retained earnings $70,000). However, its equipment (with a five-year remaining fide) was undervalued by 56,000 in the ouring records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patient ny's to be amortized over ten years. Investment for (5 The following figures came from the individual accounting records of these two companies as of December 31, 2012: (5) Revenues Expenses Investment income Dividends paid Jaynes Inc. во рт The following figures came from the individual accounting records of these two companies as of December 31, 2013: 720,000 S 528,000 Not given 100,000 Aaron Co. 276,000 144,000 60,000 S Jaynes Inc. Aaron Co. 840,000 S 336,000 552,000 180,000 Revenues Expenses Investment income Dividends paid Equipment Retained earnings, 12/31/13 balance Required: Prepare the elimination entries for December 31, 2013 RE Not given 110,000 600,000 960,000 50,000 360,000 216,000 Purchase Aeratio Puchose Price Less: Cook Asses us under Label Fut Excess Acurt Eacipant Patent byde 61,000 Investore 187,000 0 6,000 = 1200 61,000=106,100 7,300 Income
Jaynes Inc. acquired all of Aaron Co's common stock on January 1, 2012, by ng 11,000 shares of S1 par value com Jees sharee had a 517 per share fair value. On that date, Aaron reported at book value of $120,000 (common stock $50,000 and retained earnings $70,000). However, its equipment (with a five-year remaining fide) was undervalued by 56,000 in the ouring records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patient ny's to be amortized over ten years. Investment for (5 The following figures came from the individual accounting records of these two companies as of December 31, 2012: (5) Revenues Expenses Investment income Dividends paid Jaynes Inc. во рт The following figures came from the individual accounting records of these two companies as of December 31, 2013: 720,000 S 528,000 Not given 100,000 Aaron Co. 276,000 144,000 60,000 S Jaynes Inc. Aaron Co. 840,000 S 336,000 552,000 180,000 Revenues Expenses Investment income Dividends paid Equipment Retained earnings, 12/31/13 balance Required: Prepare the elimination entries for December 31, 2013 RE Not given 110,000 600,000 960,000 50,000 360,000 216,000 Purchase Aeratio Puchose Price Less: Cook Asses us under Label Fut Excess Acurt Eacipant Patent byde 61,000 Investore 187,000 0 6,000 = 1200 61,000=106,100 7,300 Income
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 21P
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Transcribed Image Text:6
(0)
(C)
(A)
(D)
Jays Inc. acquired all of Aaron Co's common stock on January 1, 2012, by using 11,000 shares of ST par value common stock
eyes shares had a 517 per share fair value. On that date, Aaron reported net book of $120,000 (common stock $50,000 and
retained earnings 370,000). However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's
accounting records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patient
to be amortized over ten years.
Mor
The following figures came from the individual accounting records of these two
companies as of December 31, 2012:
Revenues
Expenses
Investment income
Dividends paid
Commen Stock
R/E
60,000
The following figures came from the individual accounting records of these two
companies as of December 31, 2013:
Investment
Revenues
Expenses
Investment income
Dividends paid
Equipment
Retained earnings, 12/31/13 balance
Required: Prepare the elimination entries for December 31, 2013 RE
(S)
Equipant 4800
Patent
54,400.
Investment
Income
Investorat
Investment
Dividends
50,000
140,000
DepEXP
Equipment
Dep Exp
Patent
59,700
148,700
50,000
1 200
1200
Jaynes Inc.
148,700
720,000 S
528,000
Not given
100,000
Jaynes Inc.
S
1200
1921000
1200
Aaron Co.
276,000
144,000
Not given
110,000
600,000
960,000
50,000
840,000 S
552,000
Aaron Co.
336,000
180,000
50,000
360,000
216,000
60 13
192
(booo - 1000)
(61,000-6100)
Investment
CS
Purchae Alation
Purchase Price
Less: Cookwu Asses us
under Label Fut
ALL
€1,000
Invest
187
187,000
Excess Acart
Eacit 6,000÷5= 1300
Patent
61,000 106,100
€7,300
Income
Eres 7300
Mat
156,000
148,700
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