1
need to fix required 2
2
need investment Aaron, please fix both
Newton Labs leased chronometers from Brookline Instruments on January 1, 2018. Brookline Instruments manufactured the chronometers at a cost of $270,000. The chronometers have a fair value of $351,000. Appropriate adjusting entries are made quarterly. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly lease paynents Economic life of asset Estimated residual value of chrononeters at end of tease tern Interest rate charged by the lessor 5 years (20 quarterly periods) $19,639 at Jan. 1. 2018, and at Mar. 31, June 30, Sept. 30, 6 years $15, 158 124 Required: 1. Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 2. Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar) No Date General Journal Debit LALA 01 2018 Las meluah Credit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare appropriate entries for Newton Labs to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) No General Journal Debit Credit 1 Date January 01, 2018 Right-of-use asset Lease payable 300,944 300,944 2 January 01, 2018 Lease payable Cash 19,639 19,639 3 March 31, 2018 Interest expense Lease payable Cash 8,439 11,200 19,639 4 March 31, 2018 Amortization expense Right-of-use asset 15,047 15,047 Required 2 > Unis Required 1 Required 2 Prepare appropriate entries for Brookline Instruments to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your intermediate and final answers to nearest whole dollar.) No General Journal Credit Debit 1,987 1 Date January 01, 2018 Lease receivable Cost of goods sold Sales revenue Equipment 2 19,639 January 01, 2018 Cash Lease receivable 19,639 3 March 31, 2018 Cash Interest revenue MacBook Air $ Accounts Revenues Cost of goods sold Amortization expense Dividend income Net income Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Michael Aaron Debit Credit (725,500) $ (478,500) 327,750 194,250 137,700 119,000 15,000 (5,000) 0 5,000 (265,050) $ (165,250) Consolidated Totals (1,204,000) 522,000 271,700 0 $ (410,300) $ (1,048,000) 0 289,000 (1,337,000) 819,000 0 Retained earnings, 1/1 (Michael) Retained earnings, 1/1 (Aaron) Net income (above) Dividends declared Retained earnings, 12/31 0 (265,050) 90,000 $ (1,223,050) (819,000) (165,250) 5,000 (979,250) 5,000 $ (410,300) 90,000 $ (1,657,300) $ $ $ Cash Receivables Inventory Investment in Aaron Co. Copyrights Royalty agreements Trademark Total assets 167.000 402,000 633,000 710,000 522,000 999,000 0 3,433,000 289,000 999,000 20,600 291,000 342,000 0 419,000 419,000 0 1,491,600 20,000 30,000 10,000 5,000 941,000 1,428,000 25,000 2,394,000 S $ $ (1,048,000) 0 289,000 (1,337,000) 0 819,000 0 Retained earnings, 1/1 Michael Retained earnings, 1/1 (Aaron) Net Income (above) Dividends declared Retained earnings, 12/31 (265,050) 90,000 $ (1,223,050) (819,000) (165,250) 5,000 (979,250) 5,000 $ (410,300) 90,000 $ (1,657,300) $ $ $ Cash Receivables Inventory Investment in Aaron Co. Copyrights Royalty agreements Trademark Total assets 289.000 167,000 402,000 633,000 710,000 522,000 999,000 0 3,433,000 20,600 291,000 342,000 0 419,000 419,000 999,000 20,000 30,000 10,000 5,000 941,000 1,428,000 25,000 $ 2,394,000 0 $ $ 1,491,600 Liabilities Preferred stock Common stock Additional paid-in capital Retained earnings, 12/31 (above) Total liabilities and equity $ (1,109,950) (300,000) (500,000) (300,000) (1,223,050) $ (3,433,000) $ (382,350) 0 (100,000) (30,000) (979,250) $ (1.491,600) 100,000 30,000 (1,657,300) $ (1,657,300) $ 1,308,000 $ 1,308,000 Required B > a. Using the preceding information, prepare a consolidation worksheet for these two companies as of December 31, 2018. b. Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's individual financial statements? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's Individual financial statements? $ 150,250 Equity in Earnings of Aaron Retained Earnings, 1/1/18 Investment in Aaron $ 1,337,000 $ 999,000 Required A
