Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's...
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Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers. Required: . Record all the necessary worksheet entries. : Complete the consolidation income statement for Pawl and Snab at 31 of December 2014. * Complete the consolidation retained earnings for Pawl and Snab at 31 of December 2014 . Complete the consolidation balance sheet for Pawl and Snab at 31 of December 2014. Eliminations Consol- Pawl Snab Debit Credit idated INCOME STATEMENT Sales 60,000 $22.000 Income of Snab 3,510 Cost of Sales Depreciation Expense other Expenses Noncontro1ling Interest Share 13,000) 9,500) 2,000) 3,000) 23,000) 6,100) $ 3,400 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net 25,510 25, 0০০ s30, 0০0 25,510 3,400 ( 15,000) 3,000) 35,510 $30.400 26,520 $ 7,000 22,000 10,000 Inventories 20,000 14.000 Land Equipment and Buildings-net Investment in Snab Corporation Goodwill 27,000 42,000 70,000 38,000 72,810 S238,330 S111,000 FOTAL ASSETS LIAB. & EQUITY Accounts payable s Capital Stock Retained Earnings Noncontrolling Interest 32,820 $50, 600 170,000 30,000 35,510 30,400 FOTAL LIAB. 6 EQUITY 238,330 s111,000 Pawl Corporation acquired 90% of Snab Corporation on January 1, 2014 for $72,000 cash when Snab's stockholders' equity consisted of $30,000 of Capital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets and liabilities and the book value was allocated to a plant asset with a remaining 10-year straight-line life that was overvalued on the books by $5,000. The remainder was attributable to goodwill. The separate company statements for Pawl and Snab appear in the first two columns of the partially completed consolidation working papers. Required: . Record all the necessary worksheet entries. : Complete the consolidation income statement for Pawl and Snab at 31 of December 2014. * Complete the consolidation retained earnings for Pawl and Snab at 31 of December 2014 . Complete the consolidation balance sheet for Pawl and Snab at 31 of December 2014. Eliminations Consol- Pawl Snab Debit Credit idated INCOME STATEMENT Sales 60,000 $22.000 Income of Snab 3,510 Cost of Sales Depreciation Expense other Expenses Noncontro1ling Interest Share 13,000) 9,500) 2,000) 3,000) 23,000) 6,100) $ 3,400 Net income Retained Earnings 1/1 Add: Net income Less: Dividends Retained Earnings 12/31 BALANCE SHEET Cash Accounts Receivable-net 25,510 25, 0০০ s30, 0০0 25,510 3,400 ( 15,000) 3,000) 35,510 $30.400 26,520 $ 7,000 22,000 10,000 Inventories 20,000 14.000 Land Equipment and Buildings-net Investment in Snab Corporation Goodwill 27,000 42,000 70,000 38,000 72,810 S238,330 S111,000 FOTAL ASSETS LIAB. & EQUITY Accounts payable s Capital Stock Retained Earnings Noncontrolling Interest 32,820 $50, 600 170,000 30,000 35,510 30,400 FOTAL LIAB. 6 EQUITY 238,330 s111,000
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Related Book For
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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