Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) On January 1, 2020, Parent Corporation acquired 80 percent of Sub Company's net

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) On January 1, 2020, Parent Corporation acquired 80 percent of Sub Company's net identifiable assets, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Sub at that date. Parent uses the equity method in accounting for its ownership of Sub. On December 31 , 2022 , the trial balances of the two companies are as follows: Required: 1) Give all equity method entries required on December 31, 2022, to prepare consolidated financial statements. 2) Give all consolidating entries required on December 31, 2022, to prepare consolidated financial statements. 3) Prepare a three-part consolidation worksheet as of December 31,2022. Requirement 1: Give all equity method entries required on December 31, 2022, to prepare consolidated financial statements. Investment in Sub NCI Common Stock Income from sub Income to NCI Retained Earnings atements. ELIMINATING ENTRIES Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) On January 1, 2020, Parent Corporation acquired 80 percent of Sub Company's net identifiable assets, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Sub at that date. Parent uses the equity method in accounting for its ownership of Sub. On December 31 , 2022 , the trial balances of the two companies are as follows: Required: 1) Give all equity method entries required on December 31, 2022, to prepare consolidated financial statements. 2) Give all consolidating entries required on December 31, 2022, to prepare consolidated financial statements. 3) Prepare a three-part consolidation worksheet as of December 31,2022. Requirement 1: Give all equity method entries required on December 31, 2022, to prepare consolidated financial statements. Investment in Sub NCI Common Stock Income from sub Income to NCI Retained Earnings atements. ELIMINATING ENTRIES

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

Philosophy Of Auditing

Authors: Robert K. Mautz

19th Edition

0865390029, 978-0865390027

More Books

Students also viewed these Accounting questions