SUNY Co. acquired 100% of the common stock of Albany Co. on January 1, 2010 for $600,000 (cash). As of that date, Albany Co. had the following trial balance.

Debit Credit

Accounts Payable Cr. 60,000

Accounts Receivable Dr.50,000

Additional paid in capital Cr.60,000

Buildings net )20 year life) Dr. 140,000

Cash and short term investments Dr.70,000

Common stock Cr.300,000

Equipment net(8 year life) Dr. 240,000

Inventory Dr, 110,000

Land Dr. 90,000

Long term liabilities (mature 12/31/12) Cr.180,000

Retained earnings 1/1/10 Cr.120,000

Supplies Dr. 20,000

Totals Dr. 720,000 Cr.720,000

As of Jan. 1, 2010, the fair values of Albany's Buildings and Land are $190,000 and $112,000, respectively. Also on this date, Albany's has a patent with a fair value of $72,000 and 10 years remaining useful life. This patent has zero book value. There is no allocation to goodwill.

During 2010, Albany reported net income of $100,000 while paying dividends of $10,000. SUNY Co. decided to use the equity method for this investment.

Prepare consolidation worksheet entries [A][S][I][D][E] for December 31, 2010.

Answer rating: 100% (QA)

Answer Debit Credit Accounts Payable Cr 60000 Accounts Receivable Dr50000 Additi... View the full answer