Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please be sure of your answers Post Delivery Service acquired at book value 80 percent of the voting shares of Script Real Estate Company. On

image text in transcribedimage text in transcribed

please be sure of your answers

Post Delivery Service acquired at book value 80 percent of the voting shares of Script Real Estate Company. On that date, the fair value of the noncontrolling interest was equal to 20 percent of Script's book value. Script Real Estate reported common stock of $280,000 and retained earnings of $100,000. During 203, Post Delivery provided courier services for Script Real Estate in the amount of $21,000. Also during 203, Script Real Estate purchased land for $5,000. It sold the land to Post Delivery Service for $22,000 so that Post Delivery could build a new transportation center. Post Delivery reported $52,000 of operating income from its delivery operations in 20X3. Script Real Estate reported net income of \$53,000 and paid dividends of \$12,000 in 203. Required: a. Compute consolidated net income for 203. Answer is complete and correct. b. Prepare all journal entries recorded by Post Delivery Service related to its investment in Script Real Estate assuming Post uses the fully adjusted equity method in accounting for the investment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Prepare all consolidation entries required in preparing a consolidation worksheet as of December 31, 203. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fiel

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

Audit Of Tax Regularity And Efficiency

Authors: Mohamed Aziz Boussaid

1st Edition

6206215865, 978-6206215868

More Books

Students also viewed these Accounting questions

Question

Prepare an ID card of the continent Antarctica?

Answered: 1 week ago

Question

What do you understand by Mendeleev's periodic table

Answered: 1 week ago