Question
please kindly help ne with this need to submit it thank you and Investor Company owns 80% of Investee Company's for 58,000. The following are
please kindly help ne with this need to submit it thank you and Investor Company owns 80% of Investee Company's for 58,000. The following are the balance sheets of Investor Company and Investee Company. The investment in Investee Company in the unconsolidated balance sheet of Investor Company is accounted using the equity method.
Investor Company
Investee Company
Adjustment
Consolidated Company
Current Assets
$41,000
$33,000
Investment
58,000
Other Assets
144,000
54,000
Goodwill
Total Assets
$243,000
$87,000
Liabilities
$95,000
$27,000
Common Stock
70,000
32,000
Retained Earnings
78,000
28,000
Non-controlling interest
Total Liabilities and Equity
$243,000
$87,000
Required:
Prepare the consolidated balance sheet for Investor Company by completing the following table.
Sunnyside Industries acquired common stock of Mooney, Inc. as an investment. Consider the following transactions. 2020: Purchase 4,000 of the common shares of Moony, Inc. for $16.00 cash per. Moony reports earnings per share of $2.50. Sunnyside receives a cash dividend of $1.90 per share from Moony, Inc. Year-end market price of Moony is $18.00 per share 2021: Sell all 4,000 shares for $16.50 per share. Required: 1) Prepare journal entries to record the above transactions, assuming that the investment in Mooney's shares is classified as passive investment in marketable securities and fair value through net income method is used. 2) Prepare journal entries to record the above transactions, assuming that the investment in Mooney's shares is classified as investment with significant influence and equity method is used
Investor Company owns 80% of Investee Company's for 58,000. The following are the balance sheets of Investor Company and Investee Company. The investment in Investee Company in the unconsolidated balance sheet of Investor Company is accounted using the equity method.
| Investor Company | Investee Company | Adjustment | Consolidated Company |
Current Assets | $41,000 | $33,000 |
|
|
Investment | 58,000 |
|
|
|
Other Assets | 144,000 | 54,000 |
|
|
Goodwill |
|
|
|
|
Total Assets | $243,000 | $87,000 |
|
|
|
|
|
|
|
Liabilities | $95,000 | $27,000 |
|
|
Common Stock | 70,000 | 32,000 |
|
|
Retained Earnings | 78,000 | 28,000 |
|
|
Non-controlling interest |
|
|
|
|
Total Liabilities and Equity | $243,000 | $87,000 |
|
|
Required:
Prepare the consolidated balance sheet for Investor Company by completing the following table.
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