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Hi I am having trouble with this question can someone help me out. On 1 January 2023, Puttup Company acquired 75% of the outstanding common

Hi I am having trouble with this question can someone help me out.

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On 1 January 2023, Puttup Company acquired 75% of the outstanding common stock of Shuttup, Inc, in exchange for $843,750 cash. As of the acquisition date, Puttup estimated Shuttups total fair value to be $1,125,000, which includes the noncontrolling interest. Shuttups book value at the time of acquisition was $690,000.

Three items on Shuttups books were identified to have fair values different from their book values. The amounts are on the spreadsheet along with 31 December 2023 balances for both companies.

Puttup uses the equity method to account for its investment in Shuttup. There were no intra-entity receivables or payables outstanding at year-end.

Required: Prepare the consolidation worksheet for Puttup and Shuttup for 2023 in the spreadsheet. Use formulas as much as possible. Include the following:

  1. Reconciliation of fair value to book value acquired
  2. Amortization schedule for undervalued assets
  3. All required consolidation entries in general journal format. You may enter these starting on row 38 below the account balances. Identify each entry using the letter system S, A, I, D, E.
  4. The complete consolidation worksheet, including the noncontrolling interest. Again, identify entries S, A, I, D, E, and any others necessary in columns D and F.
\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline 1 & & & & \multicolumn{2}{|c|}{ Consolidation Entries } & Noncontrolling Interest & Consolidated Totals & \\ \hline 6 & Amortization expense & - & 28,000.00 & & & & 28,000.00 & Prope \\ \hline 11 & & & & & & & - & \\ \hline 21 & Goodwill & & & 1,290,000.00 & & & 1,290,000.00 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline 2 & Accounts & Puttup & Shuttup & Debit & Credit & Noncontrolling Interest & Consolidated Totals \\ \hline 28 & Accounts payable & (142,000.00) & (145,000.00) & & & & (287,000.00) \\ \hline \multicolumn{8}{|l|}{29} \\ \hline \multicolumn{8}{|l|}{30} \\ \hline 31 & Common stock & (300,000.00) & (120,000.00) & & & & (420,000.00) \\ \hline 32 & Additional paid-in capital & (1,275,000.00) & (40,000.00) & & & & (1,315,000.00) \\ \hline 33 & Retained earnings 12/31 (above) & (1,553,000.00) & (845,000.00) & & (2,186,750.00) & & (2,186,750.00) \\ \hline 34 & Total liab. and stockholders' equity & (3,270,000.00) & (1,150,000.00) & 2,023,000.00 & (3,676,750.00) & & (4,208,750.00) \\ \hline 35 & Noncontrolling interest & & & & & 241,250.00 & \\ \hline \multicolumn{8}{|l|}{36} \\ \hline 37 & Noncontrolling interest & & & & & & \\ \hline 38 & Net Assets of Shuttup (Equity) & 965,000.00 & & & & & \\ \hline 39 & Share of Noncontrolling interest (100\%-75\%) & 25.00 & & & & & \\ \hline 40 & Noncontrolling interest & 241,250.00 & & & & & \\ \hline \multicolumn{8}{|l|}{41} \\ \hline 42 & Goodwill & & & & & & \\ \hline 43 & Fair value of consideration paid & 1,140,000.00 & & & & & \\ \hline 44 & NIC at acquisition & (30,000.00) & & & & & \\ \hline 45 & Less Shuttup's net assets at acquisition & (120,000.00) & & & & & \\ \hline 46 & Goodwill & 1,290,000.00 & & & & & \\ \hline \multicolumn{8}{|l|}{47} \\ \hline 48 & Consolidated Retained Earnings & & & & & & \\ \hline 49 & Retained Earnings of Puttup & (1,553,000.00) & & & & & \\ \hline 50 & Retained Earnings of Shuttup attributed to Puttup & (633,750.00) & & & & & \\ \hline 51 & Consolidated Retained Earnings & (2,186,750.00) & & & & & \\ \hline 52 & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular}

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