Proceed Company acquired of the common stock of Stop Company on January 1, year one, for On that date, Stop had the following trial balance: account debit $250,000 Additional paid in capital Building (12-year life) Common stock Current assets Equipment (6-yr life) Land Liabilities (due in 4 years) Retained earnings 1/year 1 Totals 180,000 160,000 110,000 310,000 120,000 $700,000 $700,000 During year one, Stop reported net income of credit $100,000 170,000 During year one, Stop paid dividends of During year two, Stop reported net income of During year two, Stop paid dividends of On January 1, year one, fair values of some Stop's accounts were: Land Building Equipment $122,000 $262,000 $172.000 Part A. Use the data for the Proceed Company acquisition of the Stop Company to prepare the consolidation worksheet entries. (such as consolidation entry S, A,...) for December 31 of year one. 100% Part B. Use the data for the Proceed Company acquisition of the Stop Company to prepare the consolidation worksheet entries (such as consolidation entry S. A...) for December 31 of year two. $600,000 $50,000 $30,000 There was no impairment of any goodwill arising from the acquisition. Please indicate clearly which method (Equity, Partial Equity, or Initial Value) you choose for Proceed to use to account for its acquisition of Stop Company. $80,000 $40,000
Proceed Company acquired of the common stock of Stop Company on January 1, year one, for On that date, Stop had the following trial balance: account debit $250,000 Additional paid in capital Building (12-year life) Common stock Current assets Equipment (6-yr life) Land Liabilities (due in 4 years) Retained earnings 1/year 1 Totals 180,000 160,000 110,000 310,000 120,000 $700,000 $700,000 During year one, Stop reported net income of credit $100,000 170,000 During year one, Stop paid dividends of During year two, Stop reported net income of During year two, Stop paid dividends of On January 1, year one, fair values of some Stop's accounts were: Land Building Equipment $122,000 $262,000 $172.000 Part A. Use the data for the Proceed Company acquisition of the Stop Company to prepare the consolidation worksheet entries. (such as consolidation entry S, A,...) for December 31 of year one. 100% Part B. Use the data for the Proceed Company acquisition of the Stop Company to prepare the consolidation worksheet entries (such as consolidation entry S. A...) for December 31 of year two. $600,000 $50,000 $30,000 There was no impairment of any goodwill arising from the acquisition. Please indicate clearly which method (Equity, Partial Equity, or Initial Value) you choose for Proceed to use to account for its acquisition of Stop Company. $80,000 $40,000
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 16E
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