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Spreadsheet Assignment #2 Worth 20 points, ACCT 5175/6075, Spring 2021 It is based on Chapter 5, so NCI is involved and a Differential is involved

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Spreadsheet Assignment #2 Worth 20 points, ACCT 5175/6075, Spring 2021 It is based on Chapter 5, so NCI is involved and a Differential is involved Key pages are 190 through 193. Part 3 should have the same general format style as Figure 5-2 in text. On January 1, 2021. Penguin Corporation bought 80% of the stock of Sea Gull Corporation for $700,000. The Balance Sheets of the two companies immediately after the acquisition (January 1, 2021) of Sea Gull Corp. showed the following amounts: Cash Accounts Receivable Inventory Land Buildings & Equipment - Net Trademarks Investment in Sea Gull Total Assets Penguin Sea Gull $ 130,000 S 100,000 120,000 30,000 400,000 10,000 500,000 100,000 1,000,000 420,000 0 40,000 700,000 0 2,850,000 700,000 Accounts Payable $ 420,000 80,000 Long-Term Liabilities 1.080,000 20,000 Common Stock 1,000,000 400,000 Additional Paid in Capital 50,000 Retained Earnings 350,000 150,000 Total Liabilities and Stockholders' Equity $2,850,000 700,000 On the date of acquisition the Book Value of Sea Gull equaled its Fair Market Value (FMV), except for land that had a FMV of $140,000 and the trademarks that had a FMV of 560,000. On the date of acquisition the FMV of previously unrecorded identifiable intangibles (2-year life) of Sea Gall was $40,000, and the NonControlling Interest's fair value is $175,000. Penguin uses the equity method to record its investment in Sea Gull Required 1. List all journal entries that Penguin made to record its investment in Sea gull on the date of acquisition 2. List all Elimination Entries that would need to be made in order to prepare a workpaper for the consolidated Balance sheet of Penguin and Sea gull immediately after the combination (January 1 2019) 3. Prepare a workpaper for the consolidated Balance sheet of Penguin and Sea gull immediately after the combination (January 1, 2021) Show all necessary elimination entries in their proper column. Use a letter coding system for each elimination entry Use Figure 5-2 in text for general format, and syllabus for additional formal requirements. Remember to do the format requirements in the syllabus, such as Dates Company name te parent identified Name of statement. Dollar Sans Commax and Underlines Good Spreadsheet Assignment #2 Worth 20 points, ACCT 5175/6075, Spring 2021 It is based on Chapter 5, so NCI is involved and a Differential is involved Key pages are 190 through 193. Part 3 should have the same general format style as Figure 5-2 in text. On January 1, 2021. Penguin Corporation bought 80% of the stock of Sea Gull Corporation for $700,000. The Balance Sheets of the two companies immediately after the acquisition (January 1, 2021) of Sea Gull Corp. showed the following amounts: Cash Accounts Receivable Inventory Land Buildings & Equipment - Net Trademarks Investment in Sea Gull Total Assets Penguin Sea Gull $ 130,000 S 100,000 120,000 30,000 400,000 10,000 500,000 100,000 1,000,000 420,000 0 40,000 700,000 0 2,850,000 700,000 Accounts Payable $ 420,000 80,000 Long-Term Liabilities 1.080,000 20,000 Common Stock 1,000,000 400,000 Additional Paid in Capital 50,000 Retained Earnings 350,000 150,000 Total Liabilities and Stockholders' Equity $2,850,000 700,000 On the date of acquisition the Book Value of Sea Gull equaled its Fair Market Value (FMV), except for land that had a FMV of $140,000 and the trademarks that had a FMV of 560,000. On the date of acquisition the FMV of previously unrecorded identifiable intangibles (2-year life) of Sea Gall was $40,000, and the NonControlling Interest's fair value is $175,000. Penguin uses the equity method to record its investment in Sea Gull Required 1. List all journal entries that Penguin made to record its investment in Sea gull on the date of acquisition 2. List all Elimination Entries that would need to be made in order to prepare a workpaper for the consolidated Balance sheet of Penguin and Sea gull immediately after the combination (January 1 2019) 3. Prepare a workpaper for the consolidated Balance sheet of Penguin and Sea gull immediately after the combination (January 1, 2021) Show all necessary elimination entries in their proper column. Use a letter coding system for each elimination entry Use Figure 5-2 in text for general format, and syllabus for additional formal requirements. Remember to do the format requirements in the syllabus, such as Dates Company name te parent identified Name of statement. Dollar Sans Commax and Underlines Good

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