Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 31, 2014, Ping Company purchased 90% of Santos Company's common stock for $2,019,900 cash. Immediately after the acquisition, the two companies' balance sheets

image text in transcribedimage text in transcribed
On July 31, 2014, Ping Company purchased 90% of Santos Company's common stock for $2,019,900 cash. Immediately after the acquisition, the two companies' balance sheets were as follows: Cash $320,100 $15 1,200 Accounts receivable 602,400 298,200 Note receivable 101,000 0 Inventory 1,856,200 396,300 Advance to Santos Company 59,400 0 Investment in Santos Company 2,019,900 0 Plant and equipment (net) 3,022,200 1,500,800 Land 09,100 90,600 Tomi $3,070,900 $2,437,100 Accounts payable 1; 798,300 $ 139,200 Notes payable 902,600 101,000 Common stock 2,406,300 899,100 other contributed capital 2,137,100 681,800 Retained earnings 1,776,500 616,000 Total $8,070,800 $2,437,100 Santos Company has not yet recorded the $59,400 cash advance from Ping Company. Ping Company's accounts receivable include $19,000 due from Santos Company. Santos Company's $101,000 note payable is payable to Ping Company. Neither company has recorded $6,900 of interest accrued on the note from January 1 to July 31. Any difference between book value and the value implied by the purchase price relates to land. Prepare a consolidated balance sheet workpaper on July 31, 2014. {Roundanswers to Odecimalplaces, e.g. 125.) PING COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper July 31, 2014 Ping Santos Eliminations Noncontrolling Consolidated Company Company Dr. Cr. Interest Balance Cash 320,100 151,200 Accounts Receivable 602,400 298,200 Note Receivable 101,000 Inventory 1,856,200 396,300 Advance to Santos Company 59,400 Investment in Company 2,019,900 Difference between Implied & Book Value Plant and Equipment 3,022,700 1,500,800 Land 89,100 90,600 Total Assets 8,070,800 2,437,100 Accounts Payable 798,300 139,200 Notes Payable 902,600 101,000 Common Stock: Ping Company 2,406,300 Santos Company 899,100 Other Contributed Capital: Ping Company 2,187,100 Santos Company 681,800 Retained Earnings Ping Company 1,776,500 Santos Company 616,000 Noncontrolling Interest Total 8,070,800 2,437,100 Advance from Ping Company Interest Payable Interest Receivable Total Liabilities and Equity

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

Introduction To Management Accounting A User Perspective

Authors: Michael L Werner, Kumen H Jones

2nd Edition

0130327506, 9780130327505

More Books

Students also viewed these Accounting questions

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago