Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help in this question. please do it correctly and 100% 3 5 points Azure Enterprises acquired 90 percent of Brown Corporation's voting common

I need help in this question. please do it correctly and 100%

image text in transcribed

image text in transcribed

image text in transcribed

3 5 points Azure Enterprises acquired 90 percent of Brown Corporation's voting common stock on January 1, 20X3. for $342000. At that date, the fair value of the noncontrolling Interest of Brown Corporation was $38.000. Immediately after Azure acquired its ownership. Brown purchased 70 percent of Coral Company's stock for $140.000. The fair value of the noncontrolling Interest of Coral Company was $60,000 at that date. During 20x3, Azure reported operating Income of $210,000 and paid dividends of $95,000. Brown reported operating Income of $160,000 and paid dividends of $65.000. Coral reported net income of $70.000 and paid dividends of $15.000. At January 1, 20X3, the stockholders' equity sections of the balance sheets of the companies were as follows: 1 Azure Enterprises Brown Corporation Coral Company Connon Stock $290, eee $188,888 $116.ece Additional Paid-In Capital 160,eee 60,880 68,eee Retained Earnings 370,eee 140,000 30,eee Total Stockholders' Equity $828,eee $380,000 $ 2ee, eee Required: a. Prepare the journal entries recorded by Brown for its Investment in Coral during 20X3. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) No Answer is not complete. General Journal Investment in Coral Company stock Cash Debit Event 1 Credit . B 2 Cash Investment in Coral Company stock Olo 3 Investment in Coral Company stock Income from Coral Company lo b. Prepare the joumal entries recorded by Azure for its Investment In Brown during 20X3. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) No Event Answer is not complete. General Journal Investment in Brown Corporation stock Cash Debit Credit . 1 B 2 Cash Investment in Brown Corporation stock olol 3 Investment in Brown Corporation stock Income from Brown Corporation loo c. Prepare the consolidation entries related to Brown's Investment in Coral and Azure's Investment In Brown that are needed in preparing consolidated financial statements for Azure and its subsidiaries at December 31, 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Accounts Debit Credit Event 1 . Common stock Additional paid-in capital Retained earnings Income from Coral Company NCI in Nl of Coral Company Dividends declared Investment in Coral Company NCI in NA of Coral Company OOOOOOOO B 2 Common stock Additional paid-in capital Retained earnings Income from Brown Corporation NCI in NI of Brown Corporation Dividends declared Investment in Brown Corporation NCI in NA of Brown Corporation OOOOOOOO

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

International Financial Accounting And Reporting

Authors: Ciaran Connolly

2nd Edition

0903854724, 978-0903854726

More Books

Students also viewed these Accounting questions