Florida Chocolate Inc. was first opened as a sole proprietor in 2 0 x 2 under the
Fantastic news! We've Found the answer you've been seeking!
Question:
Florida Chocolate Inc. was first opened as a sole proprietor in x under the name Alexandrias Chocolates. The company produced specialty chocolate products using an old family recipe, which only the owner, Alexandria Vierra, knows. The company started as a small homebased business.
In x Alexandria decided to expand the business, opened a factory in Ft Lauderdale Florida and converted the business to a corporation named Florida Chocolate Inc. Due to the huge success of the business she decided to expand to Europe in x opening another factory in England. This factory is run by Alexandrias brother Nelson. The third factory was open in Brazil in x and is run by Alexandrias sister Laura.Project Information:
The recording currency and functional currency of Florida Chocolate Inc. is the US Dollar.
On January x Florida Chocolate Inc acquired of Brazil Cos outstanding stock to open a factory in Brazil. The following facts relate to the acquisition:
Florida Chocolate Inc paid $ cash for Brazil Co Industries.
On January x Brazil Co had the following assets and liabilities on its balance sheet: Cash $ Inventory $ Land $ Buildings & equipment $ Accounts Payable $ and Notes Payable $
Fair market values of all Brazil Co assets and liabilities approximate their costs with the exception of:
o Inventory $
o Land $
o Buildings & Equipment $
For the year ended December x Florida Chocolate Inc had the following other assets and liabilities on its balance sheet: Cash $ Inventory $ Land $ Buildings & equipment $ Accounts payable $ Notes payable $ Retained earnings before closing the income statement was $
Florida Chocolate Inc. received income from Brazil Co of $ and dividends from Brazil Co of $
Florida Chocolate Inc s sales for the year were $ Cost of goods sold was $ and its operating expenses were $
Brazil Co sales for the year were $ Cost of goods sold was $ and its operating expenses were $
Assume that net income increased Brazil Co cash balances. Dividends were paid out of Brazil Co cash balances.
Ignore amortization expense. There were no intercompany transactions between Florida Chocolate Inc. and Brazil Co during x
Due to the huge success of the business she expanded to Europe in x opening another factory in England. The recording currency of the England factory is the Euro and the functional currency is the Pound sterling. Part :
This week's assignment will be a draft of Part of the portfolio project. The final version of Part of the project is due, along with Part in their final versions, with Part as the Portfolio Project for this class.
Prepare the allocation schedule, consolidation worksheet, and journal entries for the initial consolidation with Brazil Co in x Prepare the journal entries required at year end, and the consolidation entries. Assume Brazil uses the US Dollar as their recording and functional currency.
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date: