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ONLY complete parts A and B, I already did part C #9 Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1,201,
ONLY complete parts A and B, I already did part C #9
Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1,201, for $300,000. On that date, Steak reported retained earnings of $90,000 and had $120,000 of common stock outstanding. Prime has used the equity-method in accounting for its investment in Steak. The trial balances for the two companies on December 31,205, appear below: Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $90,000 more than the book value Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $30,000 of intercorporate receivables and payables at the end of 205. Required: a. Prepare all journal entries that Prime recorded during 205 related to its investment in Steak. b. Prepare all consolidating entries needed to prepare consolidated statements for 205, c. Prepare a three-part worksheet as of December 31,205. Prepare all consolidating entries needed to prepare consolidated statements for 205. c. Prepare a three-part worksheet as of December 31,205. Complete this question by entering your answers in the tabs below. Prepare all journal entries that Prime recorded during 205 related to its investment in Steak. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record Prime Corporation's share of Steak Products' 205 income. B Record Prime Corporation's 100\% share of Steak Products 205 dividend. c Record the amortization of the excess acquisition price. Note: journal entry has been entered Complete this question by entering your answers in the tabs below. Prepare all consolidating entries needed to prepare consolidated statements for 205. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accou A Record the basic consolidation entry. B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany accounts. E Record the accumulated depreciation consolidation entry. Note: = journal entry has been enteredStep by Step Solution
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