Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Second time i post this question. I need help with this by 6 pm. I need total assets and total liabilites which equal total equities.
Second time i post this question. I need help with this by 6 pm. I need total assets and total liabilites which equal total equities. And i need the journal entries as normal equities methods entires. And i need the three part consolidation sheet worksheet from everything listed above if possible.
On January 1, 2021, Peanut Company acquired 90% of Snickers Corporation's common shares at underlying book value. The fair value of the noncontrolling interest was equal to 10% of the book value of Snickers at that date. Peanut uses the equity method with consolidation in accounting for its ownership of Snickers. On December 31, 2021, the trial balances of the two companies are as follows: Peanut Co. Debit Credit Snickers Corp. Debit Credit Item $120,000 225,000 $200,000 300,000 139,500 100,000 30,000 30,000 60,000 25,000 10,000 Current Assets Depreciable Assets Investment in Snickers Co. Other Expenses Depreciation Expense Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Snickers Co. $120,000 62,000 75,000 100,000 120,000 300,000 22,500 $799,500 $ 75,000 25,000 90,000 75,000 65,000 110,000 $799,500 $440,000 $440,000 Required: Prepare an Excel document with one tab for each of the following. 1. Prepare the journal entries on Peanut's books for the acquisition of Snickers on January 1, 2021, as well as any normal equity-method entry(ies) related to the investment in Snickers during 2021. 2. Prepare a three-part consolidation worksheet (as reviewed in our text, page 111, Figure 3-3) as of December 31, 2021 in good form. On January 1, 2021, Peanut Company acquired 90% of Snickers Corporation's common shares at underlying book value. The fair value of the noncontrolling interest was equal to 10% of the book value of Snickers at that date. Peanut uses the equity method with consolidation in accounting for its ownership of Snickers. On December 31, 2021, the trial balances of the two companies are as follows: Peanut Co. Debit Credit Snickers Corp. Debit Credit Item $120,000 225,000 $200,000 300,000 139,500 100,000 30,000 30,000 60,000 25,000 10,000 Current Assets Depreciable Assets Investment in Snickers Co. Other Expenses Depreciation Expense Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Snickers Co. $120,000 62,000 75,000 100,000 120,000 300,000 22,500 $799,500 $ 75,000 25,000 90,000 75,000 65,000 110,000 $799,500 $440,000 $440,000 Required: Prepare an Excel document with one tab for each of the following. 1. Prepare the journal entries on Peanut's books for the acquisition of Snickers on January 1, 2021, as well as any normal equity-method entry(ies) related to the investment in Snickers during 2021. 2. Prepare a three-part consolidation worksheet (as reviewed in our text, page 111, Figure 3-3) as of December 31, 2021 in good formStep 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