Hairy Company acquired all of Bald company's common stock on January 1, 20x7 for $1,000,000. On...
Hairy Company acquired all of Bald company's common stock on January 1, 20x7 for $1,000,000. On the date of acquistion, Bald reported total asset of $1,200,000. total liablities of $200,000, common stock of $300,000, additional paid in capital of $500,000, and retained earings of $200,000.
Give the eliminating entry that would be needed in preparing a consilidated balance sheet immediately following the acquisition.
Homework Answers
The journal entry on acquisition of Bald Company's common stock for $ 1,000 000 would be:
The eliminating entry would be as follows:
A negative goodwill of $200,000 arised on account of acquisition and the same is accounted for.
Hope this is helpful!!
Add Answer to:
Hairy Company acquired all of Bald company's common stock on
January 1, 20x7 for $1,000,000. On...
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the...
need the answer to Part B only
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the date of acquisition, the book value and fair market value of S's assets and liabilities were as follows: Book Value 200,000 300,000 160,000 340,000 Fair Market Value 300,000 500,000 Land Patent (10 yrs) Common Stock Retained Earnings a) Assuming that S uses push-down accounting, prepare the elimination entries as of 1/1/19. b) If P...
On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S...
On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S Company at the book value of the shares acquired. On that date, the fair value of noncontrolling interest was equal to 40 percent of book value of S. At the time of purchase, S had common stock of $1,000,000 outstanding and retained earnings of $800,000. On December 31, 20X7, P purchased 50 percent of S's bonds outstanding which were originally issued on January 1,...
On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S...
On January 1, 20X7, P Company acquired 60 percent of the outstanding common stock of S Company at the book value of the shares acquired. On that date, the fair value of noncontrolling interest was equal to 40 percent of book value of S. At the time of purchase, S had common stock of $1,000,000 outstanding and retained earnings of $800,000. On December 31, 20X7, P purchased 50 percent of S's bonds outstanding which were originally issued on January 1,...
On January 3, 20x9, Redding Company acquired controlling interest in Frazer orporation's common stock for $344.000...
On January 3, 20x9, Redding Company acquired controlling interest in Frazer orporation's common stock for $344.000 cash. At the acquisition date, the book alues and fair values of Frazer's assets and liabilities were equal. The stockholders equity accounts of the two companies at the acquisition date are: Redding Frazer Common Stock ($5 par value) Additional Paid-In Capital Retained Earnings $500,000 300,000 350,000 $200,000 80,000 1 50,000 Total Stockholders Equity $1,150.000 S430.000 Based on the preceding information, which of the following...
Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances: Assets Liabilities and Stockholders’...
Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances: Assets Liabilities and Stockholders’ Equity Cash & Receivables $ 80,000 Accounts Payable $ 40,000 Inventory 120,000 Income Taxes Payable 60,000 Land 70,000 Bonds Payable 200,000 Buildings & Equipment (net) 480,000 Common Stock 250,000 Retained Earnings 200,000 Total Assets $ 750,000 Total Liabilities & Stockholders’ Equity $ 750,000 Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astor’s common stock on January 2,...
On January 1, 2020, Pong Company acquired 70% of the outstanding common stock of Salt Company...
On January 1, 2020, Pong Company acquired 70% of the outstanding common stock of Salt Company for $6,400,000 cash. Pong Company uses the equity method. During 2020, Salt reported $1,200,000 of net income and paid a dividend of $240,000. The stockholders' equity section of the December 31, 2019 balance sheet for Salt was as follows: Common Stock Retained Earnings $4,000,000 $5,142,857 Total Stockholders' Equity $9,142,857 Required: A. Prepare the journal entries to record the investment and the effect of Salt's...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par stock with a market value of $40 per share. Registration fees were $500,000 and legal fees were $300,000, all paid in cash. SFC's book value at the date of acquisition was $8,000,000. At the date of acquisition, all of SFC's assets and liabilities were reported at amounts approximating fair value, except that its plant and equipment was overvalued by $10,000,000. SFC also had unreported...
Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet...
Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follows: Item Pace Corporation Spin Company Cash $ 30,000 $ 25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000 ) (50,000 ) Investment in Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds Payable...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par stock with a market value of $40 per share. Registration fees were $500,000 and legal fees were $300,000, all paid in cash. SFC's book value at the date of acquisition was $8,000,000. At the date of acquisition, all of SFC's assets and liabilities were reported at amounts approximating fair value, except that its plant and equipment was overvalued by $10,000,000. SFC also had unreported...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par...
PVN Corporation acquired all of the stock of SFC Corporation by issuing 1,000,000 shares of no-par stock with a market value of $40 per share. Registration fees were $500,000 and legal fees were $300,000, all paid in cash. SFC's book value at the date of acquisition was $8,000,000. At the date of acquisition, all of SFC's assets and liabilities were reported at amounts approximating fair value, except that its plant and equipment was overvalued by $10,000,000. SFC also had unreported...
need the answer to Part B only
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the date of acquisition, the book value and fair market value of S's assets and liabilities were as follows: Book Value 200,000 300,000 160,000 340,000 Fair Market Value 300,000 500,000 Land Patent (10 yrs) Common Stock Retained Earnings a) Assuming that S uses push-down accounting, prepare the elimination entries as of 1/1/19. b) If P...
On January 3, 20x9, Redding Company acquired controlling interest in Frazer orporation's common stock for $344.000 cash. At the acquisition date, the book alues and fair values of Frazer's assets and liabilities were equal. The stockholders equity accounts of the two companies at the acquisition date are: Redding Frazer Common Stock ($5 par value) Additional Paid-In Capital Retained Earnings $500,000 300,000 350,000 $200,000 80,000 1 50,000 Total Stockholders Equity $1,150.000 S430.000 Based on the preceding information, which of the following...
On January 1, 2020, Pong Company acquired 70% of the outstanding common stock of Salt Company for $6,400,000 cash. Pong Company uses the equity method. During 2020, Salt reported $1,200,000 of net income and paid a dividend of $240,000. The stockholders' equity section of the December 31, 2019 balance sheet for Salt was as follows: Common Stock Retained Earnings $4,000,000 $5,142,857 Total Stockholders' Equity $9,142,857 Required: A. Prepare the journal entries to record the investment and the effect of Salt's...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago