Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3133 2000, Wedding Company ace percent of fearer Corporation's commence sock for SAO,000 inch At the acquisition date, the book and fair values of Frazer's

image text in transcribed
image text in transcribed
3133 2000, Wedding Company ace percent of fearer Corporation's commence sock for SAO,000 inch At the acquisition date, the book and fair values of Frazer's assets and bes were and their value of the no controlli interest was equal to 10 cent of the total bod value of fram The stockholders equity account of the two companies at the acquisition date DOING FRAZER Common Stock (55 par value] $500,000 SOLO nl na in capit 30,000 100.000 Recundarins 400.000 150.000 Total Stockholders' Equity S.220. $450.000 NC was asked $20,000 in Puding consolidated income statement for 2020, Reddi's net income from its own operations (excluding investment income $750,000 for the year 2020, Frazer declared $18,000 in cash dividends. Input Requirement: 1. No $s in the general journals. Otherwise, include a son all monetary amounts 2. Be sure to include the 1,000 separator (4,500 NOT 4500) 3. Where needed, round answers to the nearest S1 REQUIRED: 1. Present the January 3 journal entry on the books of Redding to record the acquisition of Frizler 2. Present the January 3, 2020, consolidation journal entry needed to prepare the January 3, 2020, consolidated balance immediate after the combination 3. Present the January 3 journal entry on the books of Redding to records the acquisition of Frazier assuming that Redding issued Bonds ($450,000 Par Value, $405,000 market value) for the investment in Frazer. QUESTION 2 Ontanuary 3, 2020, Redding Company acquired 90 percent of Frazer Corporation's common stock for SAL5,000 inh At the acquisition date, the book values and fair values of Frazer's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 10 percent of the total book value of Frazer. The stockholders' equity accounts of the two companies at the acquisition date are: REDDING FRAZER Common Stock ($5 par value) $500,000 $200,000 Additional Paid-in Capital 320,000 100,000 Retained Earnings 400.000 150.000 Total Stockholders' Equity $1,220,000 $450,000 NCI was assigned $20,000 in Redding's consolidated income statement for 2020. Redding's net income from its own operations (excluding investment income) is $750,000 for the year 2020. Frazer declared $18,000 in cash dividends. mput Requirement: 1. No $'s in the general journals. Otherwise, include a $ on all monetary amounts. 2. Be sure to include the 1,000 separator (4,500 NOT 4500) 3. Where needed, round answers to the nearest $1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Kenneth Wm. Kury

3rd Edition

1119118786, 9781119118787

More Books

Students also viewed these Accounting questions

Question

What is the importance of make-or-buy studies for a company?

Answered: 1 week ago

Question

What shorter and longer-term career goals spark your interest?

Answered: 1 week ago