Glover Chemical purchased 100 percent of the outstanding stock of Ward Supply on December 31 for $100,000
Question:
Glover Chemical purchased 100 percent of the outstanding stock of Ward Supply on December 31 for $100,000 cash. As of that date, the FMVs of the inventory and fixed assets of Ward equaled $70,000 and $125,000, respectively. Assume that information to complete the following consolidated work sheet, which already reflects the entry recorded at acquisition.
Adjustments and Eliminations Consolidated Dr. Cт. Accounts Glover Ward Balance Sheet Cash 73,000 110,000 220,000 100,000 615,000 30,000 1,148,000 230,000 10,000 40,000 60,000 Accounts receivable Inventory Investment in subsidiary Fixed assets Goodwill 120,000 Total assets 70,000 80,000 70,000 10,000 Accounts payable Long-term notes 80,000 450,000 500,000 118,000 Common stock Retained earnings Total liabilities and shareholders' equity 230,000 1,148.000
Step by Step Answer:
Adjustments and Eliminations Consolidated Accounts Glover Ward Debit Credit Balance Sheet Cash 73000 ...View the full answer
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