Prepare a Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare a Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards. The fair value of Marble Falls net fixed assets are $2,675,000. Big Lake aquired 100% of Marble Falls for Fair value of fixed assets Balance Sheet prior to acquistion Current assets fixed assets, net Liabilties Common Stock Paid in Capital Retained Earnings Account Fair Vaue of assets 1. Determine the Fair Value of Marble Falls' net assets. 2. Calculate Goodwill Big Lake Purchase Price Fair value of assets Goodwill 4,250,000 4,500,000 350,000 7,500,000 500,000 400,000 Fair Value 3,750,000 2,675,000 Marble Falls 500,000 1,675,000 125,000 1,525,000 525,000 2. Prepared journal entries on Big Lake's Books Worksheet Initial purchase less equity balances difference less goodwill Step up in Net assets a. Prepare purchase entry b. Prepare consolidated journal entry to consolidate equity accounts c. Prepare consolidated journal entry to consolidate assets 3.Prepare Consolidated balance Sheet Current assets Fixed Assets Investment in Marble Falls Good will Total Debit Liabilites Common Stock Paid in Capital Retained Earnings Total Big Lake Marble Falls Credit Debit Credit Consolidated balances Prepare a Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards. The fair value of Marble Falls net fixed assets are $2,675,000. Big Lake aquired 100% of Marble Falls for Fair value of fixed assets Balance Sheet prior to acquistion Current assets fixed assets, net Liabilties Common Stock Paid in Capital Retained Earnings Account Fair Vaue of assets 1. Determine the Fair Value of Marble Falls' net assets. 2. Calculate Goodwill Big Lake Purchase Price Fair value of assets Goodwill 4,250,000 4,500,000 350,000 7,500,000 500,000 400,000 Fair Value 3,750,000 2,675,000 Marble Falls 500,000 1,675,000 125,000 1,525,000 525,000 2. Prepared journal entries on Big Lake's Books Worksheet Initial purchase less equity balances difference less goodwill Step up in Net assets a. Prepare purchase entry b. Prepare consolidated journal entry to consolidate equity accounts c. Prepare consolidated journal entry to consolidate assets 3.Prepare Consolidated balance Sheet Current assets Fixed Assets Investment in Marble Falls Good will Total Debit Liabilites Common Stock Paid in Capital Retained Earnings Total Big Lake Marble Falls Credit Debit Credit Consolidated balances
Expert Answer:
Answer rating: 100% (QA)
1 Determine the Fair Value of Marble Falls net assets Account Current Assets ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2020, Purat Corporation acquired 75,000 shares of $10 par value common stock out of the 100,000- outstanding stock of Super Corporation. Purat common stock at January 1, 2020 was...
-
Ormond Co. acquired all of the outstanding common stock of Daytona Co. on January 1, 2014. Ormond Co. gave shares of its common stock with a fair value of $312 million in exchange for 100% of the...
-
The balance sheet of Imperial Plc and its two subsidiaries Metric plc and Quantum plc as at 31 December 2019 were as follows: Balance sheets at 31 December 2020 Non-current assets Tangible assets...
-
Using a resource-based view, explain why some firms improve their economic performance by adopting a CSR strategy, whereas others achieve no results or damaging results.
-
1. Did the Huangs tender performance on the contract? Why or why not? 2. Did Ko tender performance on the contract? Why or why not? 3. Did a breach of contract occur? Explain.
-
The ability to remember specific skills and the order in which they are used is known as procedural memory. Because driving involves procedural memory, why is it so unsafe to use a cell phone while...
-
In Exercises 1 to 4, it may be helpful to draw a figure such as Figure 5.5. Figure 5.5. Using the normal curve table, determine the area of the standard normal distribution that is greater than the...
-
A more intensive, and extensive, monitoring system is needed in project management than in a functional organization. Why?
-
Mason and John operate a computer consulting service as a general partnership. Their partnership agreement states that each partner's share of the profits will be prorated according to the number of...
-
On 1 January 20x1, Delphi Company issued 4% convertible bonds with a face value of $10,000,000 at par. The bond matured on 31 December 20x5. The bond was convertible into ordinary shares of Delphi...
-
5 Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format...
-
Parts of a program are given to you below. You must now read through and understand this code - what is the goal of the program? Afterwards, fill in the blanks so that the program is complete. import...
-
1. (10 points) Consider sending a large file of size 8MB from source to destination. Assume there are two packet switches between a source host and a destination host. The bandwidth of each link is...
-
Algorithm A[1...n] 1. for in down to 2 2. 3. 4. 5. for j=1 to i-1 temp = A[j+1] A[j+1] = A[j] A[j] = temp (a) Execute Algorithm for A = <2,5,6,7,11,2,3> show the content of the array A after each...
-
How much life insurance does Magdalena have to report as taxable income?
-
However, before they can be replaced the current machines must go through the proper retirement and transition process. As an IT professional you have been assigned to a team who is responsible for...
-
Donna redeems a 10% off coupon at her local nursery. After buying azaleas, bougainvillea, and bags of potting soil, her checkout price before tax is $217.95. How much would she have paid without the...
-
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
-
Using the following key, identify the effects of the following transactions or conditions on the various financial statement elements: I ¼ increases; D ¼ decreases; NE ¼ no...
-
Eli Lilly and Company produces pharmaceutical products for humans and animals. Exhibit 7.18 includes a footnote excerpt from the annual report of Lilly for the period ending December 31, 2004....
-
Lexington Corporation acquired all of the outstanding common stock of Chalfont, Inc., on January 1, 2013. Lexington gave shares of its no par common stock with a market value of $504 million in...
-
Which of Yellows statements regarding the factors affecting the selection of a trading strategy is correct? A. Statement 1 B. Statement 2 C. Statement 3 Robert Harding is a portfolio manager at...
-
To fill the remaining portion of the ABC order, Yellow is using: A. an arrival price trading strategy. B. a TWAP participation strategy. C. a VWAP participation strategy. Robert Harding is a...
-
Given the parameters for the benchmark given by Harding, Yellow should recommend a benchmark that is based on the: A. arrival price. B. time-weighted average price. C. volume-weighted average price....
Study smarter with the SolutionInn App