Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jean and John Inc had the following balance sheets on August 31, 2021. just before acquisition: Cash Accounts Receivable Inventory Plant and Equipment (net)

Jean and Inhn Inr had the followine halanre sheete no Alıpuct.31 2021, just before acquisition:

Required: Calculate the following balances on the date of acquisition for the following accounts, that would appear on the co  

Jean and John Inc had the following balance sheets on August 31, 2021. just before acquisition: Cash Accounts Receivable Inventory Plant and Equipment (net) Goodwill Total Assets Accounts Payable Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Jean Inc. (carrying value) (carrying value) $1,200,000 $ 400,000 $ 240,000 $ 860,000 $10,000 $2,800,000 $1,500,000 $ 600.000 $ 500,000 $ 110,000 John Inc. $2,800,000 $300,000 $ 64,000 $ 80,000 $256,000 $ 20,000 $720,000 $300,000 $240,000 $ 60,000 $120,000 $720,000 Required: Calculate the following balances on the date of acquisition for the following accounts, that would appear on the consolidated Balance Sheet, given the following information below: On August 31 2021, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for a cash consideration of $400,000. You were given the following fair values for John Inc. on the date of acquisition: Inventory - $60,000 Plant & Equipment - $350,000 Bonds Payable $210,000 Here are the accounts to calculate the balance for (given information above). Goodwill (18 marks) Non-controlling interest (3 marks). Common Shares (2 marks) . .. . Cash (2 marks)

Step by Step Solution

3.38 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions

Question

What is the difference between the body and the mind?

Answered: 1 week ago