Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of acquisition, Hisham Company reported assets and liability with book values of $840,000 and $330,000, respectively. Common stock outstanding of $160,000and retained earnings of $350,000. The book values and fair values of Hisham's assets and liabilities were identical except for land, which had increased in value by $40,000, and inventories, which has decreased by $14,000. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Madhav acquired its ownership of Hisham for $502,000. Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of acquisition, Hisham Company reported assets and liability with book values of $840,000 and $330,000, respectively. Common stock outstanding of $160,000and retained earnings of $350,000. The book values and fair values of Hisham's assets and liabilities were identical except for land, which had increased in value by $40,000, and inventories, which has decreased by $14,000. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Madhav acquired its ownership of Hisham for $502,000.
Expert Answer:
Answer rating: 100% (QA)
1 Dr Cash 502000 Cr Hisham Co 350000 Cr Madhav Co Shar... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
In problem 5, assume the fund increased in value by $0.30 the first month after you purchased 300 shares. a. What is your total dollar gain or loss? (Compare the total current value with the total...
-
1. Given the Figure 2 below, find the net electric field E vector at point A due to a positive charge Q 30 C and negative charge Q2-20 uC. Write down all the necessary equations and I drawings....
-
In this task, you are required to prepare a tax case analysis based on the recent controversial hearing on ABS-CBN's franchise renewal in the Philippines. You are required to state the facts and make...
-
The Kay Company has the following Capital structure as at 31st March 2019. Based on Book Value Based on Market Value % Costs Debentures 300,000 330,000 ...
-
The company with the common equity accounts shown here has declared a four-for-one stock split when the market value of its stock is $43 per share. The firms 75-cent per share cash dividend on the...
-
Given that Where the x's functions are orthonormal, show that the orbitals Ïi form an orthonormal set if the matrix C' of coefficients c'si is unitary. 4; = E, cix si.
-
In 2002, following its adoption of a new accounting standard issued by the FASB for the impairment of goodwill accounting, AMR Corporation, the parent company of American Airlines, conducted an...
-
The following information relates to Joachim Anderson, Realtor, at the close of the fiscal year ending December 31: 1. Joachim paid the local newspaper S335 for an advertisement to be run in January...
-
TQM was defined in the textbook as managing the entire organization so that it excels on most dimensions of products and services that are important to the organization.O trueO false
-
Moreover, we should oppose school voucher programs because any government program that lacks accountability and oversight should be prohibited. It is clear school voucher programs would lack such...
-
GPHISPAT has following two assets in portfolio and risk and weights of individual assets are given below: Textile Bank Return (%) Standard deviation (%) 16.50 17.70 8.5 10 Correlation coefficient...
-
Assume you hold a 20-month to maturity bond, with 1,000 face value, semi- annual coupons of 7% p.a., interest rate to discount is 8% p.a. compounded semi- annually. What is the clean price of the...
-
Regency Integrated Chips (RIC), a large Nashville-based technology company is evaluating a new project to manufacture a new chip. a. The project's estimated economic life is 5 years. b. RIC's...
-
Use synthetic division and the Remainder Theorem to evaluate P(c). P(x) = 6x + 5x +9, c = 11/1 P(1) =
-
Without solving, say whether the equation has two solutions, one solution, or no solution. The equation has because (x+4) = 19
-
Find the equation of the line through (-1,-2) which is perpendicular to the line y = 9. Give your answer in the form y = mx + b. Provide your answer below:
-
For an object built of unit cubes, how do we find the sizes of the faces and why
-
Maria Castigliani is head of the purchasing department of Ambrosiana Merceti, a medium-sized construction company. One morning she walked into the office and said, The main problem in this office is...
-
On January 1, 2015, Johnsonville Enterprises acquired 80 percent of Stayer Companys outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was...
-
Reimers Company acquires Rollins Corporation on January 1, 2014. As part of the agreement, the parent states that an additional $100,000 payment to the former owners of Rollins will be made in 2016,...
-
The income statement and the balance sheet are produced using a worksheet, but a consolidated statement of cash flows is not. What process is followed in preparing a consolidated statement of cash...
-
What are some potential roles for advisory councils? How can organizations use these groups effectively?
-
What can happen when an executive committee has too much power and autonomy?
-
Why would a founder decide to form a membership organization rather than choosing a self - perpetuating board? When might this structure be essential? When might it be an unnecessary challenge?
Study smarter with the SolutionInn App