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part a and b please, if i could have some help. Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1,
part a and b please, if i could have some help.
Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 205, for $302,400. On that date, the noncontrolling interest had a falr value of $129,600 and the book value of Square's net assets was $396,000. The book values and falr values of Square 5 assets and lablities were equal except for lond that had a fair value $14,000 higher than book value. The amount attributed to poodwill as a result of the acqulstion is not amortized and has not been impalred. On lanuary 1, 209, Plazas inventory contained $42,000 of unrealized intercompany profits recorded by Square, Square's inventory on that date contained $15,000 of unrealized intercompany profts recorded on Plazo's books, Both companies sold their ending 20X8 laventories to unrelated companies in 209 During 209, Square sold inventory costing $43,000 to Plaza for $68,000. Plazo beld all inventory purchased from Square during 209 on December 31, 20X9, Also during 209, Plaza sold goods costing $66,600 to Square for $111,000. Square continues to hold 53720 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equily method. Requlred: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of Decomber 31,209, If no entry is required a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31,209. (If no entry Is required for a transaction/event, select "No Joumal entry required" In the first account fleld.) b. Prepare a consolidation worksheet as of December 31, 20X9. (Values in the first two columns (the "parent" and "subsidiary" belances) that are to be deducted should be Indicated with a minus slgn, while all values in the "Consolldation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all deblt entrles into one amount and enter this amount in the deblt column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) Step by Step Solution
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