On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $22,540 $35,317 Accounts receivable 38,040 62,400 Inventory 133,050 162,587 Investment in Shipley Company 224,370 —0— Plant and equipment (net) 195,000 357,060 Land 110,690 222,203 Total $723,690 $839,567 Accounts payable $38,960 $112,100 Note payable 99,300 99,300 Noncontrolling interest in Shipley Company —0— 42,737 Common stock 279,500 279,500 Other contributed capital 150,100 150,100 Retained earnings 155,830 155,830 Total $723,690 $839,567 On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows: Common stock $83,180 Other contributed capital 85,660 Retained earnings 53,220 Total $222,060 (a) Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land
On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $22,540 $35,317 Accounts receivable 38,040 62,400 Inventory 133,050 162,587 Investment in Shipley Company 224,370 —0— Plant and equipment (net) 195,000 357,060 Land 110,690 222,203 Total $723,690 $839,567 Accounts payable $38,960 $112,100 Note payable 99,300 99,300 Noncontrolling interest in Shipley Company —0— 42,737 Common stock 279,500 279,500 Other contributed capital 150,100 150,100 Retained earnings 155,830 155,830 Total $723,690 $839,567 On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows: Common stock $83,180 Other contributed capital 85,660 Retained earnings 53,220 Total $222,060 (a) Prepare the investment elimination entry made to complete a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 55RSCQ
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