Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe

image text in transcribed
image text in transcribed
in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1,201. The purchase price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000 30% of this inventory is on hand in the Monroe inventory at December 31, 20x3. In addition, inventory sold at a profit of $5,000 was in the inventory of Monroe at December 31,202. Below are the balances of accounts of Monroe and Adams at December 31, 203. Investment in A \begin{tabular}{|lcc|} \hline Goodwill & & \\ \hline Land & 100,000 & 100,000 \\ \hline Building (net) & 120,000 & 100,000 \\ \hline & & $800,000 \\ & & \\ \hline & & \\ \hline Accounts Payable & $126,000 & $50,000 \\ \hline Capital Stock & 600,000 & 460,000 \\ \hline Non-Controlling Interest & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions