Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $298,200.
Fantastic news! We've Found the answer you've been seeking!
Question:
Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $298,200. On that date, the noncontrolling interest had a fair value of $127,800 and the book value of Square's net assets was $390,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired.
Transcribed Image Text:
PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20x9 Square Company Debit $ 89,000 122,000 255,000 Plaza Corporation Debit Item Credit Credit Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in Square Company Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Square Company Accounts Payable Common Stock Retained Earnings $ 85, 300 205,000 275,000 299,652 186,000 28,000 23,000 136,000 18,000 5,000 $ 314,000 55,652 52,000 183,000 497, 300 $214, 000 26,000 166,000 219,000 $625,000 $625,000 Total $1,101,952 $1,101,952 On January 1, 20x9, Plaza's inventory contained $46,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. During 20X9, Square soid inventory costing $55,000 to Plaza for $80,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20x9 Square Company Debit $ 89,000 122,000 255,000 Plaza Corporation Debit Item Credit Credit Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in Square Company Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Square Company Accounts Payable Common Stock Retained Earnings $ 85, 300 205,000 275,000 299,652 186,000 28,000 23,000 136,000 18,000 5,000 $ 314,000 55,652 52,000 183,000 497, 300 $214, 000 26,000 166,000 219,000 $625,000 $625,000 Total $1,101,952 $1,101,952 On January 1, 20x9, Plaza's inventory contained $46,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. During 20X9, Square soid inventory costing $55,000 to Plaza for $80,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
* Incorrect. In the cross (or vector) product q = 1 F = -241+ -8.0 + 64k = -6.0 +2.0 +2.0k B = B + B + B What then is B in unit-vector notation if Bx = By? B = =qvx B we know that i 16 + i 16 ..t i 4...
-
A 14 ft long W14 x 99 beam-column is part of a braced frame and there are transverse loads between the ends, and supports service load of Ps= 340 kips service moment Ms = 250 ft- kips about strong...
-
A company is translating account balances from another currency into dollars for its December 31, 20X5 statement of financial position and its calendar year 20X5 earnings statement and statement of...
-
A transparent rod 30.0 cm long is cut flat at one end and rounded to a hemispherical surface of radius 10.0 cm at the other end. A small object is embedded within the rod along its axis and halfway...
-
No sport generates as many statistics as baseball. Reporters, managers, and fans argue and discuss strategies on the basis of these statistics. An article in Chance (A Statistician Reads the Sports...
-
Using the method of Sec. 10.8, solve Prob. 10.32. Problem 10.32: For the mechanism shown, block A can move freely in its guide and rests against a spring of constant 2.5 kN/m that is undeformed when...
-
In the corporate social responsibility highlight regarding Starbucks on page 528 in this chapter, it was stated that Starbucks believes in measuring and monitoring the company's CSR progress. The...
-
Explain whether the following instrument is negotiable. March 1, 2011 One month from date, I, James Jimson, hereby promise to pay Edmund Edwards: Six thousand, Seven hundred Fifty ($6,750.00)...
-
Click and drag on elements in order Summarize the document flow, or steps, in a voucher system by placing the following actions in their correct order of occurrence
-
Computers R Us, is a manufacturer of computer keyboards. The requirements over a typical six-month period are as follows; Demand per month. 1: 600 2: 600 3: 450 4: 750 5: 900 6: 300 The current...
-
Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. (Click the icon to view the data.) Total manufacturing overhead...
-
Emily and Alex run a car share company, Get and Go Pty Ltd . They are the only shareholders and executive directors. Emily is the managing director. When Emily and Alex set the company up in May 2 0...
-
On a day when the wind is blowing toward the south at 5 m/s, a runner jogs east at 6 m/s. What is the velocity (speed and direction) of the air relative to the runner? speed m/s
-
Part 1 A free - standing ambulatory care clinic averages $ 1 2 0 in charges per patient. Variable costs are approximately $ 2 0 per patient, and fixed costs are about 1 . 8 million per year. Using...
-
Suppose you deposit $100 in one year, $200 in two years and $300 in three years. How much will you have in three years at 8% interest?
-
3. Jade is deciding how much to work in 2020. She derives utility from consumption,C, but she also really likes taking leisure time L. She must divide her available hours between work and leisure....
-
Consider the function below. (Give your answers correct to three decimal places. If you need to use -co or co, enter -INFINITY or INFINITY.) h(x)=x52x3 + x (a) Find the intervals of increase. (Enter...
-
Imagine a sound wave with a frequency of 1.10 kHz propagating with a speed of 330 m/s. Determine the phase difference in radians between any two points on the wave separated by 10.0 cm.
-
A zero coupon bond with a par value of $100 matures in five years. (a) What is the price of the bond if the yield to maturity is 5 per cent? (b) What is the price of the bond if the yield to maturity...
-
Find the present yield to maturity on government securities with maturities of one year, five years and ten years in the Financial Times. How has the yield curve changed since 2010 as shown in the...
-
Bond 1 has an annual coupon rate of 6 per cent and Bond 2 has an annual coupon of 12 percent. Both bonds mature in one year and have a par value of 100. If the yield to maturity on bonds of this risk...
Study smarter with the SolutionInn App