Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please ONLY do parts A and B I already did part C myself #9 Prime Corporation acquired 100 percent ownership of Steak Products Company on

image text in transcribed

image text in transcribed

image text in transcribed

please ONLY do parts A and B I already did part C myself #9

Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1,201, for $300,000. On that date, Steak reported retained earnings of $90,000 and had $120,000 of common stock outstanding. Prime has used the equity-method in accounting for its investment in Steak. The trial balances for the two companies on December 31,205, appear below: Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $90,000 more than the book value. Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10 -year period. 2. There was $30,000 of intercorporate receivables and payables at the end of 205. Required: a. Prepare all journal entries that Prime recorded during 205 related to its investment in Steak. b. Prepare all consolidating entries needed to prepare consolidated statements for 205. c. Prepare a three-part worksheet as of December 31, 205. Prepare all journal entries that Prime recorded during 205 related to its investment in Steak. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record Prime Corporation's share of Steak Products' 205 income. B Record Prime Corporation's 100% share of Steak Products' 205 dividend. C Record the amortization of the excess acquisition price. Note : = journal entry has been entered Prepare all consolidating entries needed to prepare consolidated statements for 205. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the basic consolidation entry. B Record the amortized excess value reclassification entry. C Record the excess value (differential) reclassification entry. D Record the entry to eliminate the intercompany accounts. E Record the accumulated depreciation consolidation entry. Note:O = journal entry has been entered

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

Winning Compliance Auditing With Gung Fu Fighting Philosophy

Authors: Phillip Lee

1st Edition

B0CBD8KT6P, 979-8223104414

More Books

Students also viewed these Accounting questions

Question

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago

Question

2. Identify the purpose of your speech

Answered: 1 week ago