Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Prepare Consolidated worksheet for 2021 On January 1, 2020, Panther, Inc., issued securities with a total fair value of $618,000 for 100 percent of Stark
Prepare Consolidated worksheet for 2021
On January 1, 2020, Panther, Inc., issued securities with a total fair value of $618,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination Although Stark's book value at the acquisition date was $338,000, the fair value its trademarks was assessed to be $72,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $208,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. In 2020, Stark sold Panther inventory costing $107,500 for $215,000. As of December 31, 2020, Panther had resold 68 percent of this inventory. In 2021, Panther bought from Stark $178,000 of inventory that had an original cost of $89,000. At the end of 2021, Panther held $48,000 (transfer price) of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $111,800 and recorded a gain of $19,800 on the sale. Stark still owes Panther $77,200 (current liability) related to the land sale. At the end of 2021, Panther and Stark prepared the following statements for consolidation Stark Corporation $ (396,000 207,800 89,000 a Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equip. (net) Patented technology Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity Panther, Inc. $ (884,200) 380,400 208,200 (19,800) (63,800) $ (379,200) $ (378,500) (379,200) 103,600 $ (654,100) $ 141,000 429,300 790,600 $ (99,200 $ (322,200) (99,200) 37,500 $ (383,900) $ 192,000 136,600 881,600 $ 2,242,500 $ (855,600) (400,000) (332, 800) (654,100) $ (2,242,500) 71,900 347,000 154,800 $ 902, 300 $ (295,900) (190,000) (32,500) (383,900) $ (902,300) PANTHER AND STARK Consolidation Worksheet For the Year Ending December 31, 2021 Consolidatio Accounts Panther Stark Debit Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net income Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equipment (net) Patented technology Total assets Liabilities Common stock Additional paid-in capital Retained earnings 12/31/21 Total liabilities and equity $ (884,200) $ (396,000) 380,400 207,800 208,200 89,000 (19,800) 0 (63,800) 0 $ (379,200)| $ (99,200) $ (378,500) $ (322,200) (379,200) (99,200) 103,600 37,500 $ (654,100) $ (383,900) $ 141,000 $ 192,000 429,300 136,600 790,600 0 0 71,900 881,600 347.000 0 154,800 $ 2,242,500 $ 902,300 $ (855,600) $ (295,900) (400,000) (190.000) (332,800) (32,500) (654,100) (383,900) S(2.242,500) $ (902,300) $ 0 Required B PANTHER AND STARK Consolidation Worksheet Year Ending December 31, 2021 Consolidation Entries Panther Stark Debit Credit Consolidated Totals (884,200) $ (396,000) 380,400 207,800 208,200 89,000 (19,800) 0 (63,800) 0 (379,200) $ (99,200) (378,500) $ (322,200) (379,200) (99,200) 103,600 37,500 (654,100) $ (383,900) 141,000 $ 192,000 429,300 136,600 790,600 0 0 71,900 881,600 347,000 0 154,800 2,242,500 $ 902,300 (855,600) $ (295,900) (400,000) (190,000) (332,800) (32,500) (654,100) (383,900) (2.242,500) $ (902,300) $ 0 $ Required B
Prepare Consolidated worksheet for 2021
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e1643e2844_419669e1643597aa.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e1644a08e3_420669e164433e42.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e164567288_420669e1644e22c9.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e16461fa3e_421669e1645a1996.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started