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Assume Rose, Inc., paid $453,000 to acquire all the common

Assume Rose, Inc., paid $453,000 to acquire all the common stock of Mountain Corporation, and Mountain owes

Question:

Assume Rose, Inc., paid $453,000 to acquire all the common stock of Mountain Corporation, and Mountain owes Rose $175,000 on a note payable. Immediately after the purchase on September 30, 2010, the two companies balance sheets follow.

Mountain Rose Assets $ 60,000 $ 59,000 Cash. Accounts receivable, net.. 194,000 86,000 Note receivable from Mountain 175

Requirement

1. Prepare the worksheet for the consolidated balance sheet of Rose, Inc.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Transcribed Image Text:

Mountain Rose Assets $ 60,000 $ 59,000 Cash. Accounts receivable, net.. 194,000 86,000 Note receivable from Mountain 175,000 Inventory. . Investment in Mountain. Plant assets, net... 305,000 458,000 453,000 403,000 $1,590,000 524,000 $1,127,000 Total. Liabilities and Stockholders' Equity Accounts payable. Notes payable. Other liabilities ... $ 122,000 $ 67,000 410,000 312,000 295,000 268,000 216,000 556,000 Common stock.. Retained earnings... 286,000 $1,590,000 185,000 $1,127,000 Total.

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Rose Inc Consolidation Work Sheet September 30 2010 ELIMINATION CONSOLID...View the full answer

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Question Posted: Dec 10, 2012 04:21 AM

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