Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prince Corporation acquired 1 0 0 percent of Sword Company on January 1 , 2 0 X 7 , for $ 2 0 3 .
Prince Corporation acquired percent of Sword Company on January X for $ The trial balances for the Journal entry worksheet
B C income.
Journal entry worksheet
A
C
Record Pizza Corporation's share of Slice Company's X dividend.
Journal entry worksheet
Record the amortization of the excess acquisition price. Prince Corporation acquired percent of Sword Company on January X for $ The trial balances for the
two companies on December X included the following amounts:
On January X Sword reported net assets with a book value of $ A total of $ of the acquisition
price is applied to goodwill, which was not impaired in X
Sword's depreciable assets had an estimated economic life of years on the date of combination. The difference
between fair value and book value of tanglble assets is related entirely to buldings and equipment.
Prince used the equitymethod in accounting for its Investment in Sword.
Detalled analysis of recelvables and payables showed that Sword owed Prince $ on December X
Required:
a Prepare all journal entries recorded by Prince with regard to its investment in Sword during X
b Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for X
c Prepare a threepart consolidation worksheet as of December o Prepare all Journal entries recorded by Pince with regard to its investment in Sword during X
A
Record Prince Corporation's share of Sword Company's X income.
Record Prince Corporation's share of Sword Company's X dividend. b Prepare all consolidating entries needed to prepare bar a full set of consolidated financlal statements for
Record the basic consolidation entry.
A
Record the amortized excess value reclassification entry.
A
B
Record the excess value differential reclassification entry.
C
Record the entry to eliminate the intercompany accounts.
two companies on December X included the following amounts:
On January X Sword reported net assets with a book value of $ A total of $ of the acquisition
price is applied to goodwill, which was not impaired in X
Sword's depreciable assets had an estimated economic life of years on the date of combination. The difference
between fair value and book value of tanglble assets is related entirely to buldings and equipment.
Prince used the equitymethod in accounting for its Investment in Sword.
Detalled analysis of recelvables and payables showed that Sword owed Prince $ on December X
Required:
a Prepare all journal entries recorded by Prince with regard to its investment in Sword during X
b Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for X
c Prepare a threepart consolidation worksheet as of December
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started