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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
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 enteredStep by Step Solution
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