Ch 03 Homework Help Save & Et Submit Check my work 8 On January 1, 2020, Pinnacle Corporation exchanged $3,646,500 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet: 8.33 Din Cast Lecounts receivable Inventory Buildings (net) Licensing agreement Total sata $ 252,00 324,000 301.000 2,100,000 3.315.000 56.372.000 Accounts payable Long-term debt Common stock Retained earnings 8 402,0 2,950,000 1.500.000 1,520,000 eBook Total liabilities and equity $6,372,000 References Pinnacle prepared the following falr-value allocation: Pair value of Strata consideration transferred) Carrying amount acquired Excess Fair value to buildinge undervalued) to licensing Agrocents (overvalued) to goodwill indefinite lite) . 372.000 (149,000) $ 3,646,500 2,020.000 $ 626,500 223,000 $ 403,500 At the acquisition date, Strata's buildings had a 10-year remaining life and its licensing agreements were due to expire in 5 years. On December 31, 2021, Strata's accounts payable included an $90,400 current liability owed to Pinnacle. Strata Corporation continues its separate legal existence as a wholly owned subsidiary of Pinnacle with independent accounting records. Pinnacle employs the initial value method in its internal accounting for its investment in Strata The separate financial statements for the two companies for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses Check my work 8. 8.33 points Referentes The separate financial statements for the two companies for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses. Paneele seta sales (7,622,000) = (3.619.000) Coat of goods sold 3,000,000 2.110.000 Interest expense 261.000 224,000 Depreciation expense 611.000 431,000 Amortization expense 663.000 Dividend Income (50.000) Not income (1.800.000) (191.000) Retained earnings 1/1/21 (3,420,000) (1,004,4001 Not income (1,800,000) (191.000) Dividende declared 560,000 50,000 Retained tamnine 13/31/21 (6.660.000) (1.943,400) Cash 221,000 . 388,900 Necounts receivable 1,660,000 3)2,500 Inventory 1,150,000 1.480,000 Investment in Strata 3,646,500 Buildings (net) 5.995.000 2,230,000 teening agreements 1.900.000 Goodwill 402, 500 Total ALS 13,075,000 $ 6,420,400 Mounts payable . (445,000) 1745,000 Long-term debt (2.970,000) (2,230,000) Contion stock (3,000,000) (1,500,000) Retained earnings 12/31/21 16,660,000)_41,945,4001 Total Liabilities and Owner'. equity (17,075,000) (6.420,400) a. Prepare a worksheet to consolidate the financial information for these two companies Check my work 8 8.33 points a. Prepare a worksheet to consolidate the financial information for these two companies, b. Compute the following amounts that would appear on Pinnacle's 2021 separate (nonconsolidated) financial records if Pinnacle's investment accounting was based on the equity method. Subsidiary income Retained earnings, 1921. Investment in Strata c. What effect does the parent's internat investment accounting method have on its consolidated financial statements? Bence Complete this question by entering your answers in the tabs below. Required A Required Hequired Prepare a worksheet to consolidate the financial Information for these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show less PINNACLE COMPANY AND SUBSIDIARY STRATA Consolidation Worksheet For Your December 31, 2021 Consolidation Entries Pinnacle Strata Debit Credit Accounts Consolidated Tele Check my work 8 8.33 points Accounts PINNACLE COMPANY AND SUBSIDIARY STRATA Consolidation Worksheet For Year December 31, 2021 Consolidation Entries Pinnacle Strata Debit Credit $ 7.622,000) $ (3.619,000) 5.000.000 2.110.000 261,000 224.000 611.000 431,000 563.000 (50,000) 50,000 $ (1.800,000 $ (191,000) Consolidated Totals $ 11241,000 7.110,000 485,000 eBook Print Sales Cost of goods sold Interest expense Depreciation expense Amortization expense Dividend income Net income References 1,804,400 Retained earnings 1121 Net income Dividends declared Retained earnings 12/3121 (5,420,000) (1.804,400) (1,800,000) (191,000) 360.000 50.000 S (8.660,000) $ (1.945.400) 50,000 560,000 $ 609,000 Cash Accounts receivable Inventory Investment in Strata Buildings (net) Licensing agreements 221,000 $ 1.660.000 1.150,000 3.646,500 5.995,000 388.900 332,500 1,480,000 2,230.000 1,989.000 Check my work 8 50.000 Dividend Income Net Income (50,000) $ (1,800,000) (191.000) 1,804.400 8.33 points Retained earnings 1/1/21 Net Income Dividends declared Retained earnings 12/3121 (5,420,000) (1,804.400) (1,800,000) (191.000) 560,000 50,000 $ (6,660,000) $ (1.945.400) 50,000 560,000 Door 609,900 References Cash Accounts receivable Inventory Investment in Strata Buildings (net) Licensing agreements Goodwill Total assets $ 221,000 $ 388,900 1.680,000 332,500 1.150,000 1,480,000 3.646,500 5.995,000 2230,000 1.989,000 402.500 $ 13.075,000 $6,420,400 Accounts payable Long-term debit Common stock - Pinnacle Common stock - Strata Retained earings 12/31/21 Total Liabilities and Owner's Equity (445.000) (745,000) (2.970,000) (2.230,000) (3.000.000) (1,500,000) (8,660,000) (1,945,400) $(13,075,000) $ (6,420,400) $ 1,854,400 $ 50,000 Rould Ch 03 Homework Help Save & Et Submit Check my work 8 On January 1, 2020, Pinnacle Corporation exchanged $3,646,500 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet: 8.33 Din Cast Lecounts receivable Inventory Buildings (net) Licensing agreement Total sata $ 252,00 324,000 301.000 2,100,000 3.315.000 56.372.000 Accounts payable Long-term debt Common stock Retained earnings 8 402,0 2,950,000 1.500.000 1,520,000 eBook Total liabilities and equity $6,372,000 References Pinnacle prepared the following falr-value allocation: Pair value of Strata consideration transferred) Carrying amount acquired Excess Fair value to buildinge undervalued) to licensing Agrocents (overvalued) to goodwill indefinite lite) . 372.000 (149,000) $ 3,646,500 2,020.000 $ 626,500 223,000 $ 403,500 At the acquisition date, Strata's buildings had a 10-year remaining life and its licensing agreements were due to expire in 5 years. On December 31, 2021, Strata's accounts payable included an $90,400 current liability owed to Pinnacle. Strata Corporation continues its separate legal existence as a wholly owned subsidiary of Pinnacle with independent accounting records. Pinnacle employs the initial value method in its internal accounting for its investment in Strata The separate financial statements for the two companies for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses Check my work 8. 8.33 points Referentes The separate financial statements for the two companies for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses. Paneele seta sales (7,622,000) = (3.619.000) Coat of goods sold 3,000,000 2.110.000 Interest expense 261.000 224,000 Depreciation expense 611.000 431,000 Amortization expense 663.000 Dividend Income (50.000) Not income (1.800.000) (191.000) Retained earnings 1/1/21 (3,420,000) (1,004,4001 Not income (1,800,000) (191.000) Dividende declared 560,000 50,000 Retained tamnine 13/31/21 (6.660.000) (1.943,400) Cash 221,000 . 388,900 Necounts receivable 1,660,000 3)2,500 Inventory 1,150,000 1.480,000 Investment in Strata 3,646,500 Buildings (net) 5.995.000 2,230,000 teening agreements 1.900.000 Goodwill 402, 500 Total ALS 13,075,000 $ 6,420,400 Mounts payable . (445,000) 1745,000 Long-term debt (2.970,000) (2,230,000) Contion stock (3,000,000) (1,500,000) Retained earnings 12/31/21 16,660,000)_41,945,4001 Total Liabilities and Owner'. equity (17,075,000) (6.420,400) a. Prepare a worksheet to consolidate the financial information for these two companies Check my work 8 8.33 points a. Prepare a worksheet to consolidate the financial information for these two companies, b. Compute the following amounts that would appear on Pinnacle's 2021 separate (nonconsolidated) financial records if Pinnacle's investment accounting was based on the equity method. Subsidiary income Retained earnings, 1921. Investment in Strata c. What effect does the parent's internat investment accounting method have on its consolidated financial statements? Bence Complete this question by entering your answers in the tabs below. Required A Required Hequired Prepare a worksheet to consolidate the financial Information for these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show less PINNACLE COMPANY AND SUBSIDIARY STRATA Consolidation Worksheet For Your December 31, 2021 Consolidation Entries Pinnacle Strata Debit Credit Accounts Consolidated Tele Check my work 8 8.33 points Accounts PINNACLE COMPANY AND SUBSIDIARY STRATA Consolidation Worksheet For Year December 31, 2021 Consolidation Entries Pinnacle Strata Debit Credit $ 7.622,000) $ (3.619,000) 5.000.000 2.110.000 261,000 224.000 611.000 431,000 563.000 (50,000) 50,000 $ (1.800,000 $ (191,000) Consolidated Totals $ 11241,000 7.110,000 485,000 eBook Print Sales Cost of goods sold Interest expense Depreciation expense Amortization expense Dividend income Net income References 1,804,400 Retained earnings 1121 Net income Dividends declared Retained earnings 12/3121 (5,420,000) (1.804,400) (1,800,000) (191,000) 360.000 50.000 S (8.660,000) $ (1.945.400) 50,000 560,000 $ 609,000 Cash Accounts receivable Inventory Investment in Strata Buildings (net) Licensing agreements 221,000 $ 1.660.000 1.150,000 3.646,500 5.995,000 388.900 332,500 1,480,000 2,230.000 1,989.000 Check my work 8 50.000 Dividend Income Net Income (50,000) $ (1,800,000) (191.000) 1,804.400 8.33 points Retained earnings 1/1/21 Net Income Dividends declared Retained earnings 12/3121 (5,420,000) (1,804.400) (1,800,000) (191.000) 560,000 50,000 $ (6,660,000) $ (1.945.400) 50,000 560,000 Door 609,900 References Cash Accounts receivable Inventory Investment in Strata Buildings (net) Licensing agreements Goodwill Total assets $ 221,000 $ 388,900 1.680,000 332,500 1.150,000 1,480,000 3.646,500 5.995,000 2230,000 1.989,000 402.500 $ 13.075,000 $6,420,400 Accounts payable Long-term debit Common stock - Pinnacle Common stock - Strata Retained earings 12/31/21 Total Liabilities and Owner's Equity (445.000) (745,000) (2.970,000) (2.230,000) (3.000.000) (1,500,000) (8,660,000) (1,945,400) $(13,075,000) $ (6,420,400) $ 1,854,400 $ 50,000 Rould