Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 202, for...
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Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 202, for $410,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Assets $ Accounts 702,000 Payable $ 102,000 Bonds Payable 190,000 Common Stock 118,000 Retained 292,000 Earnings $ $ Total Total 702,000 702,000 Round reported net income of $79,000 for 20X2 and paid dividends of $19,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A B C Record the initial investment in Round Corporation. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry view consolidation entries > Consolidation Worksheet Entries > A B Record Trim Corp.'s 100% share of Round Corp.'s 20X2 income. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries < A B Record Trim Corp.'s 100% share of Round Corp.'s 20X2 dividend. Note: Enter debits before credits. Event 3 General Journal Debit Credit Record entry Clear entry view consolidation entries Required A Required B Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 202, for $410,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Assets $ Accounts 702,000 Payable $ 102,000 Bonds Payable 190,000 Common Stock 118,000 Retained 292,000 Earnings $ $ Total Total 702,000 702,000 Round reported net income of $79,000 for 20X2 and paid dividends of $19,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A B C Record the initial investment in Round Corporation. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry view consolidation entries > Consolidation Worksheet Entries > A B Record Trim Corp.'s 100% share of Round Corp.'s 20X2 income. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries < A B Record Trim Corp.'s 100% share of Round Corp.'s 20X2 dividend. Note: Enter debits before credits. Event 3 General Journal Debit Credit Record entry Clear entry view consolidation entries Required A Required B Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries A Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry view consolidation entries
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a Journal entries by Trim Corporation during 20X2 using the equity method 1 ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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