I really need help with this. There are 4 exercises (tabs). About Accounting for the Income of a Subsidiary and Asset Purchase v Stock Purchase.

Exercise 1A: Asset Purchase v Stock Purchase Frylock Inc. is thinking about undertaking vertical integration by taking over the functions performed by one of their suppliers, Meat Wad Inc. Frylock can either buy the net assets of, or 100% of the outstanding stock of Meat Wad for $600,000 plus $10,000 in direct aquisition costs. Below is financial information for Meat Wad as of 12/31/17: Meat Wad, Inc. Balance Sheet as of 12/31/17 Assets Cash A/R Inventory Trademark Net Fixed Assets Total Assets Book $ 400,000 150,000 200,000 $ 750,000 FMV ### 375,000 175,000 25,000 300,000 Liabilities A/P Notes Payable Bonds Payable Book $ 75,000 125,000 150,000 Equity Total Liabilities & O.E. 400,000 $ 750,000 FMV ### ### 170,000 A) Complete the journal entry made by Frylock to account for an asset purchase of Meat Wad on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Accounts Receivable Inventory Trademark Net Fixed Assets Goodwill Acquisition Expenses A/P Notes Payable Bonds Payable Cash Debit Credit 0 0 B) Complete the journal entry made by Meat Wad to account for the asset purchase by Frylock on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Debit Credit 0 0 Cash A/P Notes Payable Bonds Payable A/R Inventory Net Fixed Assets Gain on Sale C) Complete the journal entry made by Frylock to account for a 100% stock purchase of Meat Wad on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Investment in Meat Wad Acquisition Expenses Cash Debit Credit 0 0 Exercise 1B: Asset Purchase v Stock Purchase Frylock Inc. is thinking about undertaking vertical integration by taking over the functions performed by one of their suppliers, Meat Wad Inc. Frylock can either buy the net assets of, or 100% of the outstanding stock of Meat Wad for $850,000 plus $50,000 in direct aquisition costs. Below is financial information for Meat Wad as of 12/31/17: Meat Wad, Inc. Balance Sheet as of 12/31/17 Assets Cash A/R Inventory Trademark Net Fixed Assets Total Assets Book $ 350,000 200,000 25,000 325,000 $ 900,000 FMV ### 325,000 175,000 75,000 350,000 Liabilities A/P Notes Payable Bonds Payable Book FMV $ 100,000 $ 100,000 150,000 150,000 400,000 425,000 Equity Total Liabilities & O.E. 250,000 $ 900,000 A) Complete the journal entry made by Frylock to account for an asset purchase of Meat Wad on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Accounts Receivable Inventory Trademark Net Fixed Assets Goodwill Acquisition Expenses A/P Notes Payable Bonds Payable Cash Debit Credit 0 0 B) Complete the journal entry made by Meat Wad to account for the asset purchase by Frylock on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Cash A/P Notes Payable Bonds Payable A/R Inventory Trademark Net Fixed Assets Debit Credit Gain on Sale 0 0 C) Complete the journal entry made by Frylock to account for a 100% stock purchase of Meat Wad on 12/31/17 by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Account Investment in Meat Wad Acquisition Expenses Cash Debit Credit 0 0 31/17 by entering the r: Credit 0 /31/17 by entering color: Credit 0 n 12/31/17 by l change color: Credit 0 Exercise 2A: Accounting for the Income of a Subsidiary Meat Wad Inc., 100% owned by Frylock Inc., reports the following income and dividend results for 2017: Net Income; 1st Quarter (3/31) Dividend Declared (5/16/17) Net Income; 2nd Quarter (6/30) $75,000 $10,000 $30,000 Net Income; 3rd Quarter (9/30) Dividend Declared (12/20/17) Net Income; 4th Quarter (12/31) $25,000 $15,000 $45,000 A) Record the 2017 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Cost Method of accounting for the income of a subsidiary by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Date Account 5/16/17 Dividends Receivable Investment Income Debit Credit 12/20/17 Dividends Receivable Investment Income B) Record the 2017 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Equity Method of accounting for the income of a subsidiary by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Date Account 3/31/17 Investment in Meat Wad Investment Income 5/16/17 Dividends Receivable Investment in Meat Wad 6/30/17 Investment in Meat Wad Investment Income 9/30/17 Investment in Meat Wad Investment Income 12/20/17 Dividends Receivable Investment in Meat Wad 12/31/17 Investment in Meat Wad Investment Income Debit Credit Exercise 2B: Accounting for the Income of a Subsidiary Meat Wad Inc., 100% owned by Frylock Inc., reports the following income and dividend results for 2017: Net Income; 1st Quarter (3/31) Dividend Declared (5/16/17) Net Loss; 2nd Quarter (6/30) $50,000 $5,000 ($20,000) Net Income; 3rd Quarter (9/30) Dividend Declared (12/20/17) Net Income; 4th Quarter (12/31) $15,000 $10,000 $25,000 A) Record the 2017 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Cost Method of accounting for the income of a subsidiary by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Date Account 5/16/17 Dividends Receivable Investment Income Debit Credit 12/20/17 Dividends Receivable Investment Income B) Record the 2017 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Equity Method of accounting for the income of a subsidiary by entering the proper amounts in the gray-shaded cells. The the correct amount is entered, the cell will change color: Date Account 3/31/17 Investment in Meat Wad Investment Income 5/16/17 Dividends Receivable Investment in Meat Wad 6/30/17 Investment Loss Investment in Meat Wad 9/30/17 Investment in Meat Wad Investment Income 12/20/17 Dividends Receivable Investment in Meat Wad 12/31/17 Investment in Meat Wad Investment Income Debit Credit Credit gray-shaded cells. Credit