Fill out the consolidated chart Jester Company acquired all of Paws with a Cause Company's voting stock
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Jester Company acquired all of Paws with a Cause Company's voting stock on January 1, 2019, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14 per share). As of that date, Paws had stockholders' equity totaling $105,000. Land shown on Paws accounting records was undervalued by $5,000. Equipment (with a five-year life) was undervalued by $5,000. A secret formula developed by Paws appraised at $20,000 with an estimated life of 20 years. Following are the separate financial statements for the two companies for the year ending December 31, 2023 (this is the 5th year) Accounts Jester Co. Paws Co. Debit Revenues -485,000 -190,000 Cost of goods sold 150,000 65,000 Depreciation & Amort. Expense 140,000 57,000 Equity in subsidiary earnings -66,000 -0- Net income -261,000 -68,000 Retained earnings 1/1 -659,000 -98,000 Net income (above) -261,000 -68,000 Dividends paid 175,500 40,000 Retained earnings 12/31 -744,500 -126,000 Current assets 268,000 75,000 Investment in Paws Co. 216,000 -0- Land 427,500 58,000 Buildings and equipment (net) 713,000 161,000 Formula -0- -0- Goodwill 0 0 Total assets 1.624.500 294,000 Liabilities -190,000 -103,000 Common stock -600,000 -60,000 Additional paid-in capital -90,000 -5,000 Retained earnings 12/31 -744,500 -126,000 Total liabilities and equity -1,624,500 -294,000 Credit Consolidated Jester Company acquired all of Paws with a Cause Company's voting stock on January 1, 2019, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14 per share). As of that date, Paws had stockholders' equity totaling $105,000. Land shown on Paws accounting records was undervalued by $5,000. Equipment (with a five-year life) was undervalued by $5,000. A secret formula developed by Paws appraised at $20,000 with an estimated life of 20 years. Following are the separate financial statements for the two companies for the year ending December 31, 2023 (this is the 5th year) Accounts Jester Co. Paws Co. Debit Revenues -485,000 -190,000 Cost of goods sold 150,000 65,000 Depreciation & Amort. Expense 140,000 57,000 Equity in subsidiary earnings -66,000 -0- Net income -261,000 -68,000 Retained earnings 1/1 -659,000 -98,000 Net income (above) -261,000 -68,000 Dividends paid 175,500 40,000 Retained earnings 12/31 -744,500 -126,000 Current assets 268,000 75,000 Investment in Paws Co. 216,000 -0- Land 427,500 58,000 Buildings and equipment (net) 713,000 161,000 Formula -0- -0- Goodwill 0 0 Total assets 1.624.500 294,000 Liabilities -190,000 -103,000 Common stock -600,000 -60,000 Additional paid-in capital -90,000 -5,000 Retained earnings 12/31 -744,500 -126,000 Total liabilities and equity -1,624,500 -294,000 Credit Consolidated
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
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