ADVANCED ACCOUNTING
13th Edition
ISBN: 9781264046263
Author: Hoyle
Publisher: MCG
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Textbook Question
Chapter 2, Problem 19P
Problems 19 and 20 are based on the following information. The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:
BALANCE SHEETS December 31, 2017 |
||
Patrick | Sean | |
Cash | $ 80,000 | $ 60,000 |
Accounts receivable (net) | 140,000 | 25,000 |
Inventories | 90,000 | 50,000 |
Plant and equipment (net) | 625,000 | 280,000 |
Investment in Sean | 460,000 | |
Total assets | $1,395,000 | $415,000 |
Accounts payable | $ 160,000 | $ 95,000 |
Long-term debt | 110,000 | 30,000 |
Common stock ($10 par) | 340,000 | 50,000 |
Additional paid-in capital | 10,000 | |
785,000 | 230,000 | |
Total liabilities and shareholders’ equity | $ 1,395,000 | $415,000 |
Additional Information:
- On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $460,000.
- At the acquisition date, the fair values of Sean’s assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean’s inventory were $25,000 more than their carrying amounts.
19. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?
- a. $1,375,000
- b. $1,395,000
- c. $1,520,000
- d. $1,980,000
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Students have asked these similar questions
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows:
BALANCE SHEETS
December 31, 2020
Patrick
Sean
Cash
$
80,000
$
42,000
Accounts receivable (net)
140,000
28,000
Inventories
86,000
60,000
Plant and equipment (net)
640,000
278,000
Investment in Sean
454,000
-
Total assets
$
1,400,000
$
408,000
Accounts payable
172,000
86,000
Long-term debt
100,000
26,000
Common stock ($10 par)
306,000
70,000
Additional paid-in capital
14,000
Retained earnings
822,000
212,000
Total liabilities and shareholders' equity
$
1,400,000
$
408,000
Additional Information:
On December 31, 2020, Patrick acquired 100 percent of Sean’s voting stock in exchange for $454,000.
At the acquisition date, the fair values of Sean’s assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean’s inventory were…
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as
follows:
Cash
Accounts receivable (net)
Inventories
BALANCE SHEETS
December 31, 2020
Plant and equipment (net)
Investment in Sean
Total assets
Accounts payable
Long-term debt
Common stock ($10 par)
Additional paid-in capital
Retained earnings
Total liabilities and
shareholders' equity
Additional Information:
Patrick
76,000
148,000
96,000
632,000
462,000
$1,414,000
$
Sean
$ 56,000
24,000
80,000
270,000
$430,000
98,000
22,000
66,000
8,000
832,000
236,000
$1,414,000 $ 430,000
142,000
110,000
330,000
• On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $462,000.
• At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively,
except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts.
In the December 31, 2020, consolidated…
The following is the balance sheet of Sameed Brothers Corporation (000s omitted).
Sameed Brothers CorporationBalance SheetDecember 31, 2020
Assets
Current assets
Cash
$26,000
Marketable securities
18,000
Accounts receivable
25,000
Inventory
20,000
Supplies
4,000
Stock investment in subsidiary company
20,000
$113,000
Investments
Treasury stock
25,000
Property, plant, and equipment
Buildings and land
91,000
Less: Reserve for depreciation
31,000
60,000
Other assets
Cash surrender value of life insurance
19,000
Total assets
$217,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$22,000
Reserve for income taxes
15,000
Customers' accounts with credit balances
1
$ 37,001
Deferred credits
Unamortized premium on bonds payable
2,000
Long-term liabilities
Bonds payable
60,000
Total liabilities
99,001
Common…
Chapter 2 Solutions
ADVANCED ACCOUNTING
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - An acquired entity has a long-term operating lease...Ch. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Problems 19 and 20 are based on the following...Ch. 2 - In the December 31, 2017, consolidated balance...Ch. 2 - Prob. 21PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35APACh. 2 - On February 1, Piscina Corporation completed a...Ch. 2 - Prob. 37APBCh. 2 - Prob. 38APBCh. 2 - Prob. 1DYSCh. 2 - Prob. 2DYSCh. 2 - Prob. 3DYSCh. 2 - Prob. 4DYS
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