Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2011, by issuing 9,000
Question:
The following figures come from the individual accounting records of these two companies as of December 31, 2011:
The following figures come from the individual accounting records of these two companies as of
December 31, 2012:
a. What balance does Hayness Investment in Turner account show on December 31, 2012, when the equity method is applied?
b. What is the consolidated net income for the year ending December 31, 2012?
c. What is the consolidated equipment balance as of December 31, 2012? How would this answer be affected by the investment method applied by the parent?
d. If Haynes has applied the initial value method to account for its investment, what adjustment is needed to the beginning of the Retained Earnings on a December 31, 2012, consolidation worksheet?
How would this answer change if the partial equity method had been in use? How would this answer change if the equity method had been inuse?
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik