Question
Barton Corp acquired 100% of Google Inc. on January 1, 2020, in exchange for cash. The book value of Google's individual assets and Liabilities approximated
Barton Corp acquired 100% of Google Inc. on January 1, 2020, in exchange for cash. The book value of Google's individual assets and Liabilities approximated their acquisition-date fair values. On the date of acquisition, Google reported the following
cash | 350,000 | Current Liabilities | 120,000 |
Inventory | 100,000 | ||
Plant Assets | 320,000 | Common Stock | 100,000 |
Property | 500,000 | Retained Earnings | 1,050,000 |
Total Assets | 1,270,000 | Total Liabilities & Equities | 1,270,000 |
During the year google inc. reported 310,000 in net income and declared 15,000 in dividends. Barton corp accounts for their investment using the equity method.
A. What journal entry will Baton Corp make on the date of acquisition to record the investment in Google inc?
B. Prepare a consolidating balance sheet of Barton and Google immediately after the acquisition
C. Show the journal entries Barton recorded for the income and dividend declared by google throughout the year using the equity method
D. Prepare a consolidating Balance sheet, including eliminations, for December 31, 2020
I was told by my professor that the transactions between the Barton company and google create a balance sheet for Barton
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