Only need help with Part C.
Prepare a Computation and Allocation Schedule for the Difference between Book Value and the alue Implied by the Purchase Price Non- Controlling Share Parent Entire Share Value 244100 61025 Purchase Price and Implied Value 305125 Book Value of Equity Acquired Less 175520 43880 219400 Difference Between Implied and Book Value 17145 68580 85725 Land 15600 3900 19500 Balance 13245 52980 66225 13245 Goodwill 52980 66225 Balance C 0 C
Prepare the entry to be made on the books of Plutonium Corporation to record its investment in Sulfurst Inc. in its retained earnings: Assume that during the first two years after acquisition of Sulfurst Inc., Sulfurst reports the following changes Retained earnings, January 1, 2017 $101,700 Net income, 2017 36,700 Less: dividends, 2017 (25,800) 47,900 Net income, 2018 Less: dividends, 2018 (22,500) Retained earnings, December 31, 2018 $138,000 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Ent Account Titles and Explanation Debit Credit Investment in Subsidiary 244100 Cash 244100
Prepare journal entries undeer each remaining life amounts.) f the following methods to record the information above on the books of Plutonium Corporation for the years 2017 and 2018, assuming that alll depreciable assets have a not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the 20 years. (Credit account titles are automatically indented when amount is entered. (1) Plutonium uses the cost method to account for its investment in Sulfurst. Date Account Titles and Explanation Credit Debit 2017 Cash 20640 Dividend Income 20640 2018 Cash Dividend Income (2) Plutonium uses the partial equity method to account for its investment in Sulfurst. Date Account Titles and Explanation Debit Credit 2017 Investment in Subsidiary Equity in Subsidiary Income (To record equity income (loss) Cash Investment Subsidiary (To record dividend income) 2018 Investment Subsidiary
Equity in Subsidiary Income (To record equity income (loss)) Cash Investment in Subsidiary (To record dividend income) (3) Plutonium uses the complete equity method to account for its investment in Sulfurst. Date Account Titles and Explanation Debit Credit 2017 Investment in Subsidiary Equity in Subsidiary Income (To record equity income (loss)) Cash Investment in Subsidiary (To record dividend income) 2018 Investment in Subsidiary 38320 Equity in Subsidiary Income 38320 (To record equity income (loss) Cash 18000 Investment in Subsidiary 18000 (To record dividend income)
Homework Answers
| Date | Account title | Debit | credit |
| 2017 | Investment in subsidiary | 29360 | |
| Equity in subsidiary income (36700*80%) | 29360 | ||
| cash | 20640 | ||
| Investment in subsidiary (25800*80%) | 20640 | ||
| 2018 | Investment in subsidiary | 38320 | |
| Equity in subsidiary income (47900*80%) | 38320 | ||
| cash | 18000 | ||
| Investment in subsidiary (22500*80%) | 18000 |
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Only need help with Part C.
On January 1, 2017, Plutonium Corporation acquired 80% of the...
Herbert, Inc. acquired all of Rambis Company’s outstanding stock on January 1, 2017 for $ 574,000...
Herbert, Inc. acquired all of Rambis Company’s outstanding stock
on January 1, 2017 for $ 574,000 in cash. Annual excess
amortization of $ 12,000 results from this transaction. On the date
of the takeover, Herbert reported retained earnings of $ 400,000,
and Rambis reported a $ 200,000 balance. Herbert reported internal
income of $ 40,000 in 2017 and $ 50,000 in 2018 and paid $ 10,000
in dividends each year. Rambis reported net income of $ 20,000 in
2017 and...
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. ...
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $266,600 cash The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutonium's experts Sulfurst Inc.'s Sulfurst Inc. Market Value Book Values Current assets $83,000 $83,000 Property, plant & equipment 79,600 159,400 $322,000 $108,300 91,000 21,600 101,100 $322,000 Land 101,500 Building & machinery (net) 159,400 Total assets Total liabilities...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $352,500. On that date, Sales Company's stockholders' equity consisted of common stock, $100,400; other contributed capital, $40,500; and retained earnings, $143,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $153,600 and declared and paid a $50,300 dividend....
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the...
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted to $496,800. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: Net Income (loss) Dividend distribution 2014 2015 2016 $60,600 $53,900 ($57,200 ) 23,800 50,600 36,300 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,954,600 3,908,000 757,000 1,553,500 2,010,600 1,844,200 1,609,200 Additional data on Singer Company for the four...
Problem 17-9 On January 1, 2017, Shamrock Inc. had the following balance sheet. SHAMROCK INC. BALANCE...
Problem 17-9
On January 1, 2017, Shamrock Inc. had the following balance
sheet.
SHAMROCK INC.
BALANCE SHEET
AS OF JANUARY 1, 2017
Assets
Equity
Cash
$51,800
Common stock
$249,100
Debt investments (available-for-sale)
247,100
Accumulated other comprehensive income
49,800
Total
$298,900
Total
$298,900
The accumulated other comprehensive income related to unrealized
holding gains on available-for-sale debt securities. The fair value
of Shamrock Inc.’s available-for-sale debt securities at December
31, 2017, was $212,800; its cost was $151,800. No securities were
purchased during...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Monty...
part A part B closing enteries part C T accounts and post the shareholder's equity accounts. part D prepare...
part A
part B
closing enteries
part C
T accounts and post the shareholder's equity accounts.
part D
prepare a statement of retained earnings for the year.
part E
prepare the shareholder's equity section of the statement of
financial position at december 31.
Problem 11-4A On January 1, 2018, Sweetwater Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.86 million issued Retained earnings $2,860,000...
Herbert, Inc. acquired all of Rambis Company’s outstanding stock
on January 1, 2017 for $ 574,000 in cash. Annual excess
amortization of $ 12,000 results from this transaction. On the date
of the takeover, Herbert reported retained earnings of $ 400,000,
and Rambis reported a $ 200,000 balance. Herbert reported internal
income of $ 40,000 in 2017 and $ 50,000 in 2018 and paid $ 10,000
in dividends each year. Rambis reported net income of $ 20,000 in
2017 and...
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $266,600 cash The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutonium's experts Sulfurst Inc.'s Sulfurst Inc. Market Value Book Values Current assets $83,000 $83,000 Property, plant & equipment 79,600 159,400 $322,000 $108,300 91,000 21,600 101,100 $322,000 Land 101,500 Building & machinery (net) 159,400 Total assets Total liabilities...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Exercise 4-6 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $352,500. On that date, Sales Company's stockholders' equity consisted of common stock, $100,400; other contributed capital, $40,500; and retained earnings, $143,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $153,600 and declared and paid a $50,300 dividend....
Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time of purchase, Song Company's total stockholders' equity amounted to $496,800. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: Net Income (loss) Dividend distribution 2014 2015 2016 $60,600 $53,900 ($57,200 ) 23,800 50,600 36,300 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to...
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,954,600 3,908,000 757,000 1,553,500 2,010,600 1,844,200 1,609,200 Additional data on Singer Company for the four...
Problem 17-9
On January 1, 2017, Shamrock Inc. had the following balance
sheet.
SHAMROCK INC.
BALANCE SHEET
AS OF JANUARY 1, 2017
Assets
Equity
Cash
$51,800
Common stock
$249,100
Debt investments (available-for-sale)
247,100
Accumulated other comprehensive income
49,800
Total
$298,900
Total
$298,900
The accumulated other comprehensive income related to unrealized
holding gains on available-for-sale debt securities. The fair value
of Shamrock Inc.’s available-for-sale debt securities at December
31, 2017, was $212,800; its cost was $151,800. No securities were
purchased during...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Monty...
part A
part B
closing enteries
part C
T accounts and post the shareholder's equity accounts.
part D
prepare a statement of retained earnings for the year.
part E
prepare the shareholder's equity section of the statement of
financial position at december 31.
Problem 11-4A On January 1, 2018, Sweetwater Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 2.86 million issued Retained earnings $2,860,000...
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