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please provide the amounts the ones are marked wrong. Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for
please provide the amounts the ones are marked wrong.
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for $344,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $86,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Company's stock for $138,000. The fair value of the noncontrolling interest of Coral Company was $92,000 at that date. During 20X3, Azure reported operating income of $270,000 and paid dividends of $95,000. Brown reported operating income of $110,000 and paid dividends of $70,000. Coral reported net income of $60,000 and paid dividends of $15,000. At January 1, 20X3, the stockholders' equity sections of the balance sheets of the companies were as follows: Common Stock Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Azure Enterprises $280,000 150,000 390,000 $820,000 Brown Corporation $170,000 70,000 190,000 $430,000 Coral Company $120,000 70,000 40,000 $ 230,000 Daripada Required: a. Prepare the journal entries recorded by Brown for its investment in Coral during 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Event General Journal Debit Credit A 1 Investment in Coral Company stock 138,000 Cash 138,000 B 2 Cash 12,000 X Investment in Coral Company stock 12,000 C 3 Investment in Coral Company stock Income from Coral Company 36,000 36,000 b. Prepare the journal entries recorded by Azure for its investment in Brown during 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is complete but not entirely correct. No Event General Journal Debit Credit A 1 Investment in Brown Corporation stock 344,000 Cash 344,000 B 2 Cash 76,000 Investment in Brown Corporation stock 76,000 C 3 116,800 Investment in Brown Corporation stock Income from Brown Corporation 116,800 c. Prepare the consolidation entries related to Brown's investment in Coral and Azure's investment in Brown that are needed in preparing consolidated financial statements for Azure and its subsidiaries at December 31, 20X3. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) X Answer is complete but not entirely correct. No Event Accounts Debit Credit 1 Common stock Additional paid-in capital Retained earnings Income from Coral Company NCI in Nl of Coral Company Dividends declared Investment in Coral Company NCI in NA of Coral Company 120,000 70,000 40,000 36,000 24,000 15,000 165,000 110,000 B 2 Common stock Additional paid-in capital Retained earnings Income from Brown Corporation NCI in Nl of Brown Corporation Dividends declared Investment in Brown Corporation NCI in NA of Brown Corporation 170,000 70,000 190,000 152,000 38,000 70,000 440,000 110,000Step by Step Solution
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