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On January 1 , 2 0 X 1 , Diaz Corp. acquired all of the outstanding stock of Guled, Inc. for $ 6 , 0
On January X Diaz Corp. acquired all of the outstanding stock of Guled, Inc. for $ Guled, Inc. will continue to operate as a separate legal entity with independent accounting systems. At the acquisition date, Guled, Inc. had equity balances of $ in common stock, $ in additionalpaidin capital, and $ in retained earnings. Diaz uses the equity method to account for their investment. As of the date of acquisition, all of Guled, Inc.s assets and liabilities equaled fair values with the exception of the following: Remaining Useful Life Account Book Value Fair Value Equipment $ $ Patents During X and X Guled, Inc. reported the following totals for net income and dividend declarations: Retained Earnings, January X: $ X Net Income X Dividends Retained Earnings, December X X Net Income X Dividends Retained Earnings, December X $ Requirement # Determine the balance of the Investment in Guled reported on the balance sheet as of December X in Diaz's internal accounting records. Show each item that impacts the Investment in Guled balance as of December X Investment in Guled Share of Diaz Net income Share of Diaz Net income Share of Diaz dividends Share of Diaz dividends Fair Value adjustments Equipment Fair Value adjustments Patents Investment in Gulad Requirement # Record the consolidationelimination entries necessary for consolidation purposes of Diaz and Guled for the year ended December X Account Description Debit Credit
On January X Diaz Corp. acquired all of the outstanding stock of Guled, Inc. for $ Guled, Inc. will continue to operate as a separate legal entity with independent accounting systems. At the acquisition date, Guled, Inc. had equity balances of $ in common stock, $ in additionalpaidin capital, and $ in retained earnings. Diaz uses the equity method to account for their investment. As of the date of acquisition, all of Guled, Inc.s assets and liabilities equaled fair values with the exception of the following:
Remaining Useful Life
Account Book Value Fair Value
Equipment $ $
Patents
During X and X Guled, Inc. reported the following totals for net income and dividend declarations:
Retained Earnings, January X: $
X Net Income
X Dividends
Retained Earnings, December X
X Net Income
X Dividends
Retained Earnings, December X $
Requirement #
Determine the balance of the Investment in Guled reported on the balance sheet as of December X in Diaz's internal accounting records. Show each item that impacts the Investment in Guled balance as of December X
Investment in Guled
Share of Diaz Net income
Share of Diaz Net income
Share of Diaz dividends
Share of Diaz dividends
Fair Value adjustments Equipment
Fair Value adjustments Patents
Investment in Gulad
Requirement #
Record the consolidationelimination entries necessary for consolidation purposes of Diaz and Guled for the year ended December X
Account Description Debit Credit
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