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…
A: Calculation of the amount of goodwill to be recognized.
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…
Q: Assume that the acquisition took place on January 1. What figures would appear in a consolidated…
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…
Q: The following separate income statements are for Burks Company and its 80 percent–owned subsidiary,…
A: Computation of basic EPS of Company B:
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…
A: Shares issued in business acquisition: 500,000 shares @ $8 market value per share Common stock:…
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…
Q: Century Corporation acquired 8,400 common shares of Fidelity Company on January 10, 2012, for $12…
A: The entry in the journal books which follow double entry method to record the transactions is called…
Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…
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.
Q: (TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies…
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…
Q: Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of…
A: Definition: Consolidated financial statements: These financial statements are consolidated…
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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- Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.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…Prime 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. $750,000
- On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company. This price was based on paying $424,000 for 20 percent of Blondel’s preferred stock and $3,960,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel’s common stock was $440,000. The fair value of the 80 percent of Blondel’s preferred shares not owned by Tesco was $1,696,000. Blondel’s stockholders’ equity accounts at January 1 were as follows:Tesco believes that all of Blondel’s accounts approximate their fair values within the company’s financial statements. What amount of consolidated goodwill should be recognized?a. $ 300,000b. $ 316,000c. $ 364,000d. $ 520,000On January 1, Tesco Company spent a total of $4,428,000 to acquire control over Blondel Company. This price was based on paying $432,000 for 20 percent of Blondel’s preferred stock and $3,996,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel’s common stock was $444,000. The fair value of the 80 percent of Blondel’s preferred shares not owned by Tesco was $1,728,000. Blondel’s stockholders’ equity accounts at January 1 were as follows: Preferred stock—9%, $100 par value, cumulative and participating; 10,000 shares outstanding $ 1,000,000 Common stock—$50 par value; 40,000 shares outstanding 2,000,000 Retained earnings 3,350,000 Total stockholders’ equity $ 6,350,000 Tesco believes that all of Blondel’s accounts approximate their fair values within the company’s financial statements. What amount of consolidated goodwill should be recognized?When 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
- On January 1, 2023, Mona, Incorporated, acquired 80 percent of Lisa Company’s common stock as well as 60 percent of its preferred shares. Mona paid $82,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at a $51,000 fair value. Mona paid $588,000 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of $147,000. The excess fair value over Lisa’s book value was attributed to franchise contracts of $74,000. This intangible asset is being amortized over a 40-year period. Lisa pays all preferred stock dividends (a total of $25,000 per year) on an annual basis. During 2023, Lisa’s book value increased by $74,000. On January 2, 2023, Mona acquired one-half of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's bonds had a face value of $100,000 and paid cash interest of 8 percent per year.…On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano’s shares continued to trade for $30 both before and after Patterson’s acquisition.At January 1, Soriano’s book and fair values were as follows:In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a three-year remaining life.During the year, Soriano declared a $30,000 dividend for its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December 31.a. What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet?b. What valuation principle should Patterson use to report each of Soriano’s identifiable assets and liabilities in its January 1 consolidated balance sheet?c.…On June 30, Malone Music Company exchanges 17,098 shares of its common stock for 100% of the outstandingshares of Nave Sound, Inc. Malone will maintain Nave as a wholly owned subsidiary, and Nave will retain its ownlegal and accounting status. Each of Malone’s shares has a $4 par value and a $50 fair value. The fair value of thestock exchanged in the acquisition was considered equal to Nave’s fair value. Malone also paid $26,700 in stockregistration and issuance costs in connection with the merger. Just prior to the acquisition, the following data for Nave was available: Book Values Fair ValuesReceivables $ 60,500 $ 55,800Trademarks 119,750 318,500Licensed Song Lyrics 75,500 198,500In-process Music Videos 0 213,000Notes payable (70,500) (62,650) Malone and Nave had the following account balances just prior to the acquisition:Malone NaveCash $ 74,250 $ 34,000Receivables 80,750 60,500Trademarks 423,000 119,750Licensed Song Lyrics 854,000 75,500Equipment (net) 386,000 118,000Totals $…
- Hepner Corporation has the following stockholders’ equity accounts:The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for $1,600,000 and 70 percent of the preferred stock for $630,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $400,000 and was $270,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed as having fair values equal to their book values. What amount is attributed to goodwill on the date of acquisition?On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $200,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $30,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,000 in connection with stock issuance costs.Prior to these transactions, the balance sheets for the two companies were as follows:In Marshall’s appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary’s books: Inventory by $5,000, Land by $20,000, and Buildings by $30,000. Marshall plans to maintain Tucker’s separate legal identity and to operate Tucker as a wholly owned subsidiary.a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts…On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $200,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $20 per share. Marshall paid $30,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $12,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Company Book Value Tucker Company Book Value Cash $ 60,000 $ 20,000 Receivables 270,000 90,000 Inventory 360,000 140,000 Land…
