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DoorDash acquired 51% of the common stock of Wolt on December 31, 2021, for $8,100,000,000. At the date of acquisition, Wolt reported common stock with

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DoorDash acquired 51% of the common stock of Wolt on December 31, 2021, for $8,100,000,000. At the date of acquisition, Wolt reported common stock with a par valve of $10,000,000,000, additional paid-in-capital of $1,000,000,000, and retained earnings of S4.880.852,941. The fair value of the non-controlling interest at acquisition was 7,782,352,941. The differential at acquisition was attributable to the following items: Inventory (all sold in 2022) Land Goodwill Total Differential 300,000 560,000 640,000 1,500,000 Throughout 2028, DoorDash sold inventory to Wolt, Wolt sold 60% of the inventory by December 31, 2028. Cost of Inventory to DoorDash S 610.000 Sale Price of Inventory to Wolts 900,000 On January 1, 2028. DoorDash's inventory contained inventory purchased from Wolt, which had produced the inventory. By December 31, 2028. DoorDash had sold all inventory that had been on DoorDashd January 1, 2028. Cost of Inventory to Wolt S 89.025 Sale Price of Inventory to DoorDash S 97,500 During 2022. DoorDash sold a plot of land that it had purchased several years before to Wolt; Wolt continues to hold the land, Cost of Land to DoorDash S Sale Price of Land to Wolt S 750,000 150.000 On January 1, 2028, DoorDash purchased equipment from Wolt. Wolt had purchased that equipment on December 31, 2022. The equipment is expected to have a total 15-year life and no salvage valve. Both entities use the straight-line method of depreciation and amortization. Cost of Equipment to Wolt S 71,000 Sale Price of Equipment to DoorDash S 100.000 On January 1, 2026, DoorDash sold par valve, 10 percent, five-year bonds at 112 directly to Wolt. The bonds pay interest annually on December 31 Roth entities amortize hond nremiums and discounts on a straight-line hasis Par Valve of Bonds S 100,000 Wolt issued par valve 10-year bonds with a coupon rate of 10 percent on January 1, 2025. On December 31, 2027, DoorDash purchased par valve of Wolt's bonds. Interest payments are made on July 1 and January 1. Both entities amortize bond premiums and discounts on a straight-line basis. Par Value of Bonds S 900,000 Bond Issue Price $ 895,000 Percentage of Bonds Outstand Purchased 30% Purchase Price of Bond Investment S 288.900 As of December 31, 2028, Wolt had declared but not yet paid its fourth-quarter dividend of $5,000. On December 31, 2028, applicable information from the pre-closing trial balances of DoorDash and Wolt appeared in T-Accounts as follows: DoorDash WOLT Debit Credit Debit Credit Cost of Services 1,368,000,000 82,215,000 Sales and Marketing 957,000,000 54,000,000 Research and Development 321,000,000 5,000,000 General and Administrative 556,000,000 2,535,000 Depreciation and Amortization 120,000,000 36,000,000 Interest Expense 3,000,000 1,850,000 Dividends Declared 20,000 APIC 6,592,000,000 1,000,000,000 Common Stock 10,000,000,000 RE (1,613,000,000) 14,900,000,000 Sales 2,886,000,000 182,700,000 Requirement 4. Prepare all applicable equitg method entries for the year ended, December 31, 2026. Please label.each journal entis. (15 points) Equity Method Encies Investment in Sub Income from Sub NCI Income to NCI Common Stock Retained Earnings APIC Requirement 5: Prepare the elimination entries as of December 31, 2028. Please Elimination Entries

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