PROBLEM 2: on on January 1, 20x8 at fair value. At the e Alther data, lling interest was $88,000. Accumulated depre was $75,000 on the acquisition date. The tria mulated depreciation on The trial balance at December Snic' Corporation acquired 60 percent of Spunpo the fair value of the noncontrolling interes Buildings and Equipment was $75,000 31,20x7 for Spic'N-Spann are as follows: Spic'N - Spann Combination Trial Balance December 31, 20x8 Spic'N Spann $8,000 22,000 30,000 275,000 0 Cash Accounts Receivable Inventory Building and Equipment Investment in Spann Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income of Subsidiary - 225 ou $27,000 65,000 40,000 500,000 136,000 38.000 150,000 30,000 8,000 24,000 $140,000 63,000 100,000 200,000 242,000 220,000 15,000 110,000 10,000 3,000 15,000 6,000 $85,000 20,000 50,000 110,000 60,000 148,000 TOTALS $980,000 $980,000 $473,000 $473,000 Required: 25, ow S.Sou 1) Provide the journal entrics recorded by Spic'N during 20X80 es recorded by Spic'N during 20x8 on its books if it accounts for investment in Spann using the equity method. Write entries on page 1 2) Give the consolidatin PROBLEM 2: on on January 1, 20x8 at fair value. At the e Alther data, lling interest was $88,000. Accumulated depre was $75,000 on the acquisition date. The tria mulated depreciation on The trial balance at December Snic' Corporation acquired 60 percent of Spunpo the fair value of the noncontrolling interes Buildings and Equipment was $75,000 31,20x7 for Spic'N-Spann are as follows: Spic'N - Spann Combination Trial Balance December 31, 20x8 Spic'N Spann $8,000 22,000 30,000 275,000 0 Cash Accounts Receivable Inventory Building and Equipment Investment in Spann Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income of Subsidiary - 225 ou $27,000 65,000 40,000 500,000 136,000 38.000 150,000 30,000 8,000 24,000 $140,000 63,000 100,000 200,000 242,000 220,000 15,000 110,000 10,000 3,000 15,000 6,000 $85,000 20,000 50,000 110,000 60,000 148,000 TOTALS $980,000 $980,000 $473,000 $473,000 Required: 25, ow S.Sou 1) Provide the journal entrics recorded by Spic'N during 20X80 es recorded by Spic'N during 20x8 on its books if it accounts for investment in Spann using the equity method. Write entries on page 1 2) Give the consolidatin
