how to create a consolidated worksheet to arrive at a consolidated balance sheet totals as of the
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how to create a consolidated worksheet to arrive at a consolidated balance sheet totals as of the acquisition by using the 3 different methods: Equity, Initial Value, and Partial-Equity Method. Use Excel and different tabs for each method Equity, Initial Value, Partial-Equity.
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Company A acquired 100% of Company B's voting stock on January 1, 2018 by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 at date of acquisition. The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5 year life) was undervalued by $5,000. A customer list that had been created internally had an estimated useful life of 20 years was valued at $20,000. Following are the financial statements for the two companies for the year ending December 31, 2018. Credit balances are indicated by (parentheses). Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods; Equity, Intial Value, and Partial Equity (use individual tabs following problem) Then, continue by preparing a consolidated worksheet for year ended Dec. 31, 2018. Include your consolidation and elimination entries in journal form with the exam. A Company B Company Revenues COGS (485,000) 160,000 Depreciation Exp 130,000 Net Income (190,000) 70,000 52,000 (68,000) R/E, 1/1 (609,000) (40,000) Net income (above) (68,000) Dividends paid 175,500 40,000 R/E, 12/31 (68,000) Cash 268,000 17,000 Trademark 427,500 58,000 Buildings & Eqp (net) 713,000 161,000 Total Assets 236,000 Liabilities (190,000) (103,000) Common Stock (600,000) (60,000) APIC (90,000) (5,000) R/E (above) (68,000) Total Liabilities & Equity (236,000) Company A acquired 100% of Company B's voting stock on January 1, 2018 by issuing 10,000 shares of its $10 par value common stock. Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 at date of acquisition. The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5 year life) was undervalued by $5,000. A customer list that had been created internally had an estimated useful life of 20 years was valued at $20,000. Following are the financial statements for the two companies for the year ending December 31, 2018. Credit balances are indicated by (parentheses). Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods; Equity, Intial Value, and Partial Equity (use individual tabs following problem) Then, continue by preparing a consolidated worksheet for year ended Dec. 31, 2018. Include your consolidation and elimination entries in journal form with the exam. A Company B Company Revenues COGS (485,000) 160,000 Depreciation Exp 130,000 Net Income (190,000) 70,000 52,000 (68,000) R/E, 1/1 (609,000) (40,000) Net income (above) (68,000) Dividends paid 175,500 40,000 R/E, 12/31 (68,000) Cash 268,000 17,000 Trademark 427,500 58,000 Buildings & Eqp (net) 713,000 161,000 Total Assets 236,000 Liabilities (190,000) (103,000) Common Stock (600,000) (60,000) APIC (90,000) (5,000) R/E (above) (68,000) Total Liabilities & Equity (236,000)
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To create a consolidated worksheet in Excel using the three different methods Equity Method Initial Value Method and PartialEquity Method to arrive at consolidated balance sheet totals you can follow ... View the full answer
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