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can u show me how to solve it includes step by step for the answer? thank you determine the amount for the following items will
can u show me how to solve it includes step by step for the answer? thank you
determine the amount for the following items will appear in the consolidated financial statement of Poe Corporation and Subsidiary for the year ended December 31,2011 a. Cash b. equipment less accumulated depreciation c. investment in Saw d. Bond Payable (net of unamortized discount) e. common stock f. beginning retained earnings g. dividend paid h. gain on retirement of bonds I. cost of goods sold j. interest expenses k. depreciation expense
P7-5 Based on AICPA] Computations (constructive retirement of subsidiary bonds) Selected amounts from the separate unconsolidated financial statements of Poe Corporation and its 90 percent-owned subsidiary. Saw Company, at December 31, 2011, are as follows (in thousands). Poe Selected Income Statement Amounts Sales Cost of goods sold Gain on sale of equipment Earnings from investment in subsidiary Interest expense Depreciation Selected Balance Sheet Amounts $710 S530 370 21 490 63 25 50 16 20 Inventories $ 15 150 360 (120) 229 quipment Accumulated depreciation Investment in Saw Investment in bonds Bonds payable Common stock Additional paid-in capital Retained earnings 189 (200) (10) (100) (250) (402) (140) Selected Statement of Retained Earnings Amounts Beginning balance December 31, 2010 Net income Dividends paid $272 $100 70 30 80 ADDITIONAL INFORMATION 1. On January 2, 2011, Poe purchased 90 percent of Saw's 100,000 outstanding common stock for cash of $153,000. On that date, Saw's stockholders' equity equaled $150,000 and the fair values of Saw's assets and liabilities equaled their carrying amounts. Poe accounted for the combination as an acquisition. The difference between fair value and book value was due to goodwill 2. On September 4, 2011, Saw paid cash dividends of $30,00. 3. On December 31, 2011, Poe recorded its equity in Saw's earnings. 4. On January 3, 2011, Saw sold equipment with an original cost of $30,000 and a carrying value of $15,000 to Poe for $36,000. The equipment had a remaining life of three years and was depreciated using the straight-line method by both companies. 5. During 2011, Saw sold merchandise to Poe for $60,.000, which included a profit of $20,000. At December 31, 2011, half of this merchandise remained in Poe's inventory. 6. On December 31, 2011, Poe paid $91.000 to purchase half of the outstanding bonds issued by Saw. The annually on December 31 of each year, and the interest was paid to the prior investor immediately before Poe purchase of the bonds. mature on December 31, 2017, and were originally issued at par. These bonds pay interest tements of Poe Corporation and Subsidiary for the year ended December 31, 2011. 1. Cash : Determine the amounts at which the following items will appear in the consolidated financial 2. Equipment less accurmulated depreciation 3. Investment in SawStep by Step Solution
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