On January 5, 2018, Alpha Inc. acquired 80% of the outstanding voting shares of Beta Inc. for
Question:
Required:
1. Prepare the entries for adjustments and eliminations required to prepare the consolidated balance sheet immediately after acquisition under the acquisition method.
2. Prepare the consolidated balance sheet immediately after acquisition.
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...
Beta Alpha Book Value Falr Value Assets Current assets Fixed assets, net Investment in Beta $1,750,000 500,000 500,000 5,000,000 ,625,000 2,000,000 2,000,000 Total Assets $8,750,000 $2,125,000 $2,500,000 Beta Alpha Book Value Falr Value Liabilities Current Liabilities 250,000 125,000 125,000 Stockholders' Equity Common stock Capital in excess of par Retained earnings Total Stockholders' Equity 7,000,000 500,000 1,500,000 500,000 2,000,000 Total Liabilities and Stockholders' Equity $8,750,000 $2.125,000 8,500,000 2
Step by Step Answer:
Requirement 1 The elimination entries that Alpha should make in its consolidating worksheet are give...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Related Video
This video is about ways to attempt consolidated balance sheet questions. since the unconsolidated financial statements of parent and subsidiary companies are prepared separately, consolidating the balance sheets of both companies is critical and sometimes becomes complex. the tutorial will guide students on to how questions on attempting questions on consolidated financial statements in an easier yet more effective way.
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