Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE COMPLETE ALL CHARTS ANS SHOW WORK!! Cunsuination Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. c. Prepare a

PLEASE COMPLETE ALL CHARTS ANS SHOW WORK!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Cunsuination Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. c. Prepare a consolidated balance sheet in good form. Note: Amounts to be deducted should be indicated with a minus sign. Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be Indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Lonsuination Worksheet Entries Record the entry to eliminate the intercompany accounts. Note: Enter debits before credits. Phone Corporation acquired 70 percent of Smart Corporation's common stock on December 31,204, for $91,000. At that date, the fair value of the noncontrolling interest was $39.000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of the business combination, the book values of Smart's assets and liabilities approximated fair value except for inventory. which had a fair value of $91,000, and bulidings and equipment, which had a fair value of $205,000. At December 31,204, Phone reported accounts poyable of $13,700 to $ mort, which reported an equal amount in its accounts recelvable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Phone Corporation acquired 70 percent of Smart Corporation's common stock on December 31,204, for $91,000. At that date, the fair value of the noncontrolling interest was $39,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: At the date of the business combination, the book values of Smart's assets and liabilities approximated fair value except for inventory. which had a fair value of $91,000, and buildings and equipment, which had a fair value of $205,000. At December 31,204, Phone reported accounts payable of $13,700 to $ mart, which reported an equal amount in its accounts recelvable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries D Note: Enter debits before credits. Cunsulluation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits

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

Fundamentals Of Cost Accounting

Authors: T.R.Sikka

7th Edition

8130918706, 978-8130918709

More Books

Students also viewed these Accounting questions

Question

5. What are the other economic side effects of accidents?

Answered: 1 week ago