Stick Corporation is a wholly owned subsidiary of Point Corporation. Point acquired ownership of Stick on...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657b46625a18_8466657b4661fccc.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657b4665ce47_8466657b466567c0.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657b4669460e_8466657b4668ec4c.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6657b466d2af5_8466657b466cda5a.jpg)
Transcribed Image Text:
Stick Corporation is a wholly owned subsidiary of Point Corporation. Point acquired ownership of Stick on January 1, 20X3, for $28,000 above Stick's reported net assets. At that date, Stick reported common stock outstanding of $60,000 and retained earnings of $90,000. The differential is assigned to equipment with an economic life of seven years at the date of the business combination. Stick reported net income of $30,000 and paid dividends of $12,000 in 20X3. Required: a. Prepare the journal entries recorded by Point Corporation during 20X3 on its books if Point accounts for its investment in Stick using the equity method. b. Prepare the consolidating entries needed at December 31, 20X3, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entries recorded by Point Corporation during 20X3 on its books if Point accounts for its investment in Stick using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Stick Corporation is a wholly owned subsidiary of Point Corporation. Point acquired ownership of Stick on January 1, 20X3, for $28,000 above Stick's reported net assets. At that date, Stick reported common stock outstanding of $60,000 and retained earnings of $90,000. The differential is assigned to equipment with an economic life of seven years at the date of the business combination. Stick reported net income of $30,000 and paid dividends of $12,000 in 20X3. Required: a. Prepare the journal entries recorded by Point Corporation during 20X3 on its books if Point accounts for its investment in Stick using the equity method. b. Prepare the consolidating entries needed at December 31, 20X3, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entries recorded by Point Corporation during 20X3 on its books if Point accounts for its investment in Stick using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Inflation and Exchange Rates suppose the current exchange rate for the Polish zloty is Z 3.18. The expected exchange rate in three years is Z 3.27. What is the difference in the annual inflation...
-
What is a major difference between a distributable reserve and a non-distributable reserve? a. Non-distributable reserves can be used to pay a dividend but distributable reserves cannot b....
-
In 1931, Pepsi was almost broke. The Great Depression hit it hard, and Coke had most of the duopoly market for soft drinks in the United States. Pepsi tried many things: marketing campaigns, label...
-
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit...
-
Let X be a normal random variable with a mean of 5 and a standard deviation of 10. Find P(-20 < x < 15). 0.3413 O 0.4938 O 0.3085 0.8351
-
For fluids with small viscosity coefficients, please explain why the viscous effect in the flow near the wall cannot be ignored.
-
How does the drag coefficient of an airfoil with ideal steady compressible flow vary with the Mach number and lift-drag ratio of the incoming flow?
-
How does the lift coefficient of an airfoil with ideal steady compressible flow vary with the Mach number of the incoming flow and why?
-
Please indicate the conditions of the separation point in the boundary layer. Why does the resistance of the object flow around increase significantly after the boundary layer is separated?
-
Why is the velocity distribution in the boundary layer near the object surface unstable under the reverse pressure gradient, and there is a velocity inflection point in the boundary layer?
-
How do they differ from the Food Service in the Restaurant Operation? 300 or 500 0r 700 words
-
Alpha AG is wholly owned by Mr Alpha and Beta AG is wholly owned by Mr Beta. The key figures for the two companies are as follows: Alpha acquires Beta. Calculate the shareholdings (as a percentage)...
-
When negotiating, is agreement first reached on the relative value or on the calculation method?
-
Can the success of a merger be judged by looking at the change in share price of the companies when the merger is announced?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App