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Gold Enterprises acquired 100 percent of Premium Builders stock on

Gold Enterprises acquired 100 percent of Premium Builders stock on December 31, 20X4. Balance sheet data for

Question:

Gold Enterprises acquired 100 percent of Premium Buildersâ€™ stock on December 31, 20X4. Balance sheet data for Gold and Premium on January 1, 20X5, are as follows:

At the date of the business combination, Premiumâ€™s cash and receivables had a fair value of $28,000, inventory had a fair value of $357,000, and buildings and equipment had a fair value of $92,000.

Required
a. Give all elimination entries needed to prepare a consolidated balance sheet on January 1, 20X5.
b. Complete a consolidated balance sheet worksheet.
c. Prepare a consolidated balance sheet in goodform.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Transcribed Image Text:

Gold Enterprises $80,000 150,000 430,000 167,000 $827,000 $100,000 400,000 200,000 127,000 $827,000 Premium Builders Cash & Receivables Inventory Buildings & Equipment (net) Investment in Premium Stock Total Assets 30,000 350,000 80,000 $460,000 Current Liabilities Long-Term Debt Common Stock Retained Earnings $110,000 200,000 140,000 10,000 $460.000 Total Liabilities & Stockholders Equity

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a Equity Method Entries on Gold Enterprises Books Investment in Premium Builders 167000 Ca...View the full answer

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Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

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Question Posted: May 23, 2014 11:38 AM

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