Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 5, Problem 5.5E
Balance Sheet Worksheet
Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the twocompanies immediately the Solution acquisition showed the following amounts:
The Pair value of thenoncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to kind held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solutionhad recorded the accrued interest, but Problem had not.
Required
Prepare and complete a consolidated balance sheet worksheet.
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On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the
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Required:
Prepare a consolidated balance sheet for Paragraph at December 31, 20X8.
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Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item
Phone Corporation
Smart Corporation
Cash
$ 58,300
$ 22,000
Accounts Receivable
109,000
49,000
Inventory
144,000
79,000
Land
73,000
36,000
Buildings & Equipment
426,000
266,000
Less: Accumulated Depreciation
(166,000)
(75,000)
Investment in Smart Corporation
97,300
Total Assets
$ 741,600
$ 377,000
Accounts Payable
$ 142,500
$ 26,000
Mortgage Payable
331,100
233,000
Common Stock
68,000
39,000
Retained Earnings
200,000
79,000
Total Liabilities & Stockholders’ Equity
$ 741,600
$ 377,000
At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…
Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item
Phone Corporation
Smart Corporation
Cash
$ 58,300
$ 22,000
Accounts Receivable
109,000
49,000
Inventory
144,000
79,000
Land
73,000
36,000
Buildings & Equipment
426,000
266,000
Less: Accumulated Depreciation
(166,000)
(75,000)
Investment in Smart Corporation
97,300
Total Assets
$ 741,600
$ 377,000
Accounts Payable
$ 142,500
$ 26,000
Mortgage Payable
331,100
233,000
Common Stock
68,000
39,000
Retained Earnings
200,000
79,000
Total Liabilities & Stockholders’ Equity
$ 741,600
$ 377,000
At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…
Chapter 5 Solutions
Advanced Financial Accounting
Ch. 5 - Where is the balance assigned to the...Ch. 5 - Why must a noncontrolling interest be reported in...Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - Prob. 5.5QCh. 5 - Prob. 5.6QCh. 5 - Prob. 5.7QCh. 5 - Prob. 5.8QCh. 5 - Prob. 5.9QCh. 5 - Prob. 5.10Q
Ch. 5 - Under what Circumstances would a parent company...Ch. 5 - Prob. 5.12QCh. 5 - Prob. 5.13QCh. 5 - Prob. 5.14AQCh. 5 - Prob. 5.15AQCh. 5 - Consolidation Worksheet Preparation The newest...Ch. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5CCh. 5 - Prob. 5.1.1ECh. 5 - Prob. 5.1.2ECh. 5 - Prob. 5.1.3ECh. 5 - Prob. 5.1.4ECh. 5 - Prob. 5.2.1ECh. 5 - Prob. 5.2.2ECh. 5 - Prob. 5.2.3ECh. 5 - Prob. 5.2.4ECh. 5 - Prob. 5.2.5ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Balance Sheet Worksheet Problem Company owns 90...Ch. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8.1ECh. 5 - Prob. 5.8.2ECh. 5 - Prob. 5.8.3ECh. 5 - Prob. 5.8.4ECh. 5 - Prob. 5.8.5ECh. 5 - Prob. 5.8.6ECh. 5 - Prob. 5.8.7ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17AECh. 5 - Prob. 5.18AECh. 5 - Prob. 5.19PCh. 5 - Prob. 5.20PCh. 5 - Prob. 5.21.1PCh. 5 - Multiple-Choice Questions on Applying the Equity...Ch. 5 - Prob. 5.21.3PCh. 5 - Prob. 5.21.4PCh. 5 - Prob. 5.22PCh. 5 - Computation of Account Balances Pencil Company...Ch. 5 - Prob. 5.24PCh. 5 - Equity Entries with Differential On January 1,...Ch. 5 - Equity Entries with Differential Plug Corporation...Ch. 5 - Prob. 5.27PCh. 5 - Prob. 5.28PCh. 5 - Prob. 5.29P
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