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PaVin acquires all of Stabler's outstanding shares on January 1 , 2 0 1 8 , for $ 5 1 0 , 0 0 0
PaVin acquires all of Stabler's outstanding shares on January for $ in cash. Of this amount, $ was attributed to equipment with a year remaining life and $ was assigned to trademarks expensed over a year perlod. Pavin applies the partial equity method so that Income is accrued each period based solely on the earnings reported by the subsidlary. On January Pavin reports $ in bonds outstanding with a carrying amount of $ Stabler purchases half of these bonds on the open market for $ During Pavin begins to sell merchandise to Stabler. During that year, Inventory costing $ was transferred at a price of $ All but $at sales price of these goods were resold to outside partles by yearend. Stabler still owes $ for Inventory shipped from Pavin during December. The following financlal figures are for the two companles for the year ending December Dividends were both declared and pald during the current year. tablePAVIN AND STABLERConsolidation WorksheetFor Year Ending December Pavin,Stabler,Consolidation Entries, tableConsolidatedTotalsAccountsDebit,CreditRevenues$Cost of goods sold,,ExpensesInterest expensebonds,,Interest incomebond investment,,Loss on extinguishment of bonds,,Equity in Stabler's income,,Net income,Retained earnings, PavinRetained earnings, StablerNet income,,Dividends declared,,Retained earnings, $Cash and receivables,$sInventoryInvestment in Stabler,,Investment in Pavin bonds,,Land buildings, and equipment netTrademarksTotal assets,$Accounts payable,,Eonds payable,,Discount on bonds,,ofCommon stock,,Retained earnings,,Total liabilites and stockholders' equity,$sS
PaVin acquires all of Stabler's outstanding shares on January for $ in cash. Of this amount, $ was attributed to equipment with a year remaining life and $ was assigned to trademarks expensed over a year perlod. Pavin applies the partial equity method so that Income is accrued each period based solely on the earnings reported by the subsidlary.
On January Pavin reports $ in bonds outstanding with a carrying amount of $ Stabler purchases half of these bonds on the open market for $
During Pavin begins to sell merchandise to Stabler. During that year, Inventory costing $ was transferred at a price of $ All but $at sales price of these goods were resold to outside partles by yearend. Stabler still owes $ for Inventory shipped from Pavin during December.
The following financlal figures are for the two companles for the year ending December Dividends were both declared and pald during the current year.
tablePAVIN AND STABLERConsolidation WorksheetFor Year Ending December Pavin,Stabler,Consolidation Entries,
tableConsolidatedTotalsAccountsDebit,CreditRevenues$Cost of goods sold,,ExpensesInterest expensebonds,,Interest incomebond investment,,Loss on extinguishment of bonds,,Equity in Stabler's income,,Net income,Retained earnings, PavinRetained earnings, StablerNet income,,Dividends declared,,Retained earnings, $Cash and receivables,$sInventoryInvestment in Stabler,,Investment in Pavin bonds,,Land buildings, and equipment netTrademarksTotal assets,$Accounts payable,,Eonds payable,,Discount on bonds,,ofCommon stock,,Retained earnings,,Total liabilites and stockholders' equity,$sS
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