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I need help with the consolidated balance sheet. On the actual balance sheet portion of the question, there is another column to the right of
I need help with the consolidated balance sheet. On the actual balance sheet portion of the question, there is another column to the right of the noncontrolling interest" column that is labeled consolidated total. The column cannot be seen in this view as it did not fit in the picture.
On February 1,2024, Pharoah Company purchased 95% of the outstanding common stock of Sharon Company and 85% of the outstanding common stock of Brian Company. Immediately before the two acquisitions, balance sheets of the three companies were as follows: The following additional information is relevant. 1. One week before the acquisitions, Pharoah Company had advanced $12,500 to Sharon Company and $5,200 to Brian Company. Sharon Company recorded an increase to Accounts Payable for its advance, but Brian Company had not recorded the transaction. 2. On the date of acquisition, Pharoah Company owed Sharon Company $12,900 for purchases on account, and Brian Company owed Pharoah Company $4,300 and Sharon Company $6,000 for such purchases. The goods purchased had all been sold to outside parties prior to acquisition. 3. Pharoah Company exchanged 13,300 shares of its common stock with a fair value of $12 per share for 95% of the outstanding common stock of Sharon Company. In addition, stock issue fees of $4,000 were paid in cash. The acquisition was accounted for as a purchase. 4. Pharoah Company paid $49,300 cash for the 85% interest in Brian Company. 5. 2,750 dollars of Sharon Company's notes payable and $10,200 of Brian Company's notes payable were payable to Pharoah Company. 6. Assume that for Sharon, any difference between book value and the value implied by the purchase price relates to subsidiary land. However, for Brian, assume that any excess of book value over the value implied by the purchase price is due to overvalued buildings. Prepare a consolidated balance sheet workpaper immediately after acquisition. (Round answers to 0 decimal places, e.g. 125.) Difference between Implied and Book Value Advances to Sharon Company Advances to Brian Company Land Buildings (net) Equipment (net) Total Assets Accounts Payable Income Taxes Payable Notes Payable 12,500 5,200 31,40010,400 5,200 5,50011,200 Bonds Payable Common Stock: Pharoah Company Sharon Company Brian Company Other Contributed Capital: Pharoah Company Sharon Company Brian Company Retained Earnings Pharoah Company 100,000 433,000 146,000 43,500 222,600 12,000 39,000 121,200 Sharon Company Brian Company Noncontrolling Interest Total Liabilities and Equity 7,800 (9,300)
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