ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 34P
To determine
Prepare the worksheet entries required for the consolidation of Company M Company and Company Y Company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
account balance. Assume that
nt of downstream intra-entity profits against its share of Sheridan's income.
b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting
as of December 31, 2024.
Complete this question by entering your answers in the tabs below.
Required A Required B
Show how Pulaski determined the $409,651 Investment in Sheridan account balance. Assume that Pulaski defi
of downstream intra-entity profits against its share of Sheridan's income.
Note: Amounts to be deducted should be indicated with a minus sign.
Consideration transferred
Increase in Sheridan's retained earnings 1/1/23 to 1/1/24
Excess fair value amortization
2023 ending inventory profit deferral
Pulaski's equity in earnings of Stinson for 2024
Sheridan 2024 dividends declared to Pulaski
Investment account balance 12/31/24
Required A
$(20,340)
+
$362,400
(20,340)
$342,060
Required B >
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $848,000 in cash to the owners of
Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $212,000
both before and after Miller's acquisition.
On January 1, 2016, Taylor reported a book value of $492,000 (Common Stock $246,000; Additional Paid-In Capital = $73,800;
Retained Earnings = $172,200). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of
$65,600.
During the next three years, Taylor reports income and declares dividends as follows:
Year
Net Income
Dividends
$ 57,700
$ 8,400
12,700
17,000
2016
2017
75,600
2018
84,600
Determine the appropriate answers for each of the following questions:
a. What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years
following this acquisition?
b. If a consolidated…
In the December 21, 2021 consolidated statement of financial position, the net income attributable to equity holders of ABC should be presented at:
Do not forget if there is any upstream and downstream
Chapter 5 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Use the same information as in problem (5) except...Ch. 5 - Angela, Inc., holds a 90 percent interest in Corby...Ch. 5 - Prob. 8PCh. 5 - Thomson Corporation owns 70 percent of the...Ch. 5 - Prob. 10PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - What is the consolidated total for inventory at...Ch. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Akron, Inc., owns all outstanding stock of Toledo...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Following are financial statements for Moore...Ch. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 1DYSCh. 5 - Hamilton Hawks Players Association and Mr....
Knowledge Booster
Similar questions
- In early January 2023, Flounder Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Washi Corp. for $361,000. Flounder was now able to exercise considerable influence in decisions made by Washi's management. Washi's statement of financial position reported the following information at the date of acquisition: Assets not subject to being amortized Assets subject to depreciation (10 years average life remaining) Liabilities Additional information: 1. 2. 3. 4. (a) $180,000 546,000 101,000 Both the carrying amount and fair value are the same for non-depreciable assets and for liabilities. The fair value of the assets subject to depreciation is $660,000. The company depreciates its capital assets on a straight-line basis. Washi reported net income of $143,000 and declared and paid dividends of $99,000 in 2023. Prepare the journal entry to record Flounder's investment in Washi. Assume that any unexplained payment is goodwill. (Credit account titles are…arrow_forwarda) Explain how each dividend would be treated in both the Consolidated statementof profit or loss and the Consolidated statement of changes in equity for the yearended 30 June 2022.b) Prepare the retained earnings and non-controlling income columns from theConsolidated statement of changes in equity for the year ended 30 June 2022c) What determines the status of an investment as an associate? Identify anyfurther information needed to confirm the status of Able as an associate?arrow_forwardView previous attempt On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,200. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $96,750. During the next two years, the following information is available for Zip Company: Common Stock Fair Value 2019 2020 2021 Income Dividends Declared $69,000 $7,100 89,000 14,700 (12/31) $324,000 387,000 477,000 Check my work At December 31, 2020, Zip reports a net book value of $289,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2020, a. Assume Akron applies the equity method to its Investment in Zip account 1. What amount of equity income should Akron report for 2021? 2. On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in…arrow_forward
- REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022. INFORMATION Extract from the ledger of Sooraya Enterprises on 28 February 2022 R Capital: Soo 450 000 Capital: Raya 350 000 Current a/c: Soo (01 March 2021) Current a/c: Raya (01 March 2021) Drawings: Soo Drawings: Raya The following must be taken into account: 30 000 CR 25000 DR 220 000 260 000 1. On 28 February 2022 the Profit and Loss account reflected a net profit of R 880 000. 2. Partners are entitled to interest at 12% p.a. on their capital balances. Note: Soo increased her capital contribution by R180 000 on 01 September 2021. The capital increase has been recorded. 3. The partners are entitled to the following monthly salaries for the first 6 months of the financial year: Soo R15 000 Raya R11 000 From 01 September 2021, the partners will be entitled to annual salaries of R144 000 each. 4. Raya is entitled to a bonus…arrow_forwardUse the adjusted trial balance of Lash Corporation below to prepare a classified balance sheet, multistep income statement, a statement of comprehensive income, and two columns of the statement of stockholders' equity (RE column & AOCI column). Ignore income taxes. Ignore EPS. Important other information: Debt Investments have been adjusted to fair value. The unrealized holding gain listed on the trial balance relates to this adjus tment. - The Note Payable is due in 3 equal annual installments. The first stallment is due on 12/31/26. Common Stock has a par value of $1. Number of shares authorized equals 500,000. Compute the number of shares issued. The number of shares issued = number of shares outstanding. - Balances below are either as of 12/31/25 or for the year ended 12/31/25. Lash Corporation Adjusted Trial Balance 12/31/2025 Cash 102,000 Debt Investments (trading) 90,000 Accounts Receivable 47,000 Allowance for doubtful accounts 1,000 Cash surrender value of life insurance…arrow_forwarda.Prepare the related journal entries of the debt investment for the year 2018. b.Prepare journal entries to record the purchase, the fair value adjustment and the selling of investment in Gemilang Bhd. c. Prepare journal entries to record the purchase, the dividend received and the fair value adjustment of investment in Harmoni Bhd. d.Explain FOUR (4) reasons why companies can use the financial assets to sustain the business during the COVID-19 pandemic.arrow_forward
- REQUIRED1. Prepare a schedule showing Pamba’s income from Samba for the years 2017, 2018, and 2019.2. Compute Pamba’s net income for the years 2017, 2018, and 2019. 3. Prepare a schedule of consolidated net income for Pamba Corporation and Subsidiary for the years 2017, 2018, and 2019, beginning with the separate incomes of the two affiliates and including noncontrolling interest computations.arrow_forwardA company, accounting for an equity investment under the equity method, is preparing its income statement and is trying to determine what amount should be included as income from the investee. Identify the location in professional standards that indicates that, under the equity method, the investor recognizes its share of the earnings or loss of the investee. Enter the exact section and paragraph with helpful information for this scenario. (An example of a correctly formatted FASB ASC response is 205-10-25-2.)arrow_forwardAccounting Research Problem Refer to the annual report of General Mills, Inc. for the year ending May 28, 2017 (fiscal year 2017), available on this book’s Website. Review the consolidated balance sheets.a. Identify two assets listed in the consolidated balance sheets that indicate that General Mills uses the accrual basis of accounting. Which income statement accounts of General Mills are affected by adjustments to these assets accounts?b. Identify two liabilities listed in the consolidated balance sheets that indicate that General Mills uses the accrual basis of accounting. Which income statement accounts of General Mills are affected by these adjustments?arrow_forward
- What amount will be shown on the July 1, 20X1, consolidated balance sheet for the following: Total equity Now assume this transaction had been completed prior to the elimination of poolings of interest, and that the pooling method had been used to record the acquisition. Redo requirements 1 and 2: Total assets Total liabilities Total equityarrow_forwardListed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. a. In May 2021, Regent Corporation recorded as revenue $5,000 received in advance from a customer for a job that would be completed in June 2021. Violation: (Yes/No) Applicable Assumption/Principle: b. Sally Maze made sure to keep her personal expenditures separate from her marketing company books.…arrow_forwardPlease answer these last few pertaining to the infomation above thanks. Determine the amounts that would appear in the consolidated financial statements of Pub Corporation and Sub for each of the following: 4. Consolidated retained earnings at December 31, 2019 5. Consolidated net income for 2019 6. Non-controlling interest at December 31, 2018 7. Non-controlling interest at December 31, 2019arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning