Glover Chemical purchased 100 percent of the outstanding stock of Ward Supply on December 31 for $100,000
Question:
Glover Chemical purchased 100 percent of the outstanding stock of Ward Supply on December 31 for $100,000 cash. As of that date, the FMVs of the inventory and fixed assets of Ward equaled $70,000 and $125,000, respectively. Assume that information to complete the following consolidated work sheet, which already reflects the entry recorded at acquisition.
Adjustments and Eliminations Consolidated Dr. Cт. Accounts Glover Ward Balance Sheet Cash 73,000 110,000 220,000 100,000 615,000 30,000 1,148,000 230,000 10,000 40,000 60,000 Accounts receivable Inventory Investment in subsidiary Fixed assets Goodwill 120,000 Total assets 70,000 80,000 70,000 10,000 Accounts payable Long-term notes 80,000 450,000 500,000 118,000 Common stock Retained earnings Total liabilities and shareholders' equity 230,000 1,148.000
Step by Step Answer:
Adjustments and Eliminations Consolidated Accounts Glover Ward Debit Credit Balance Sheet Cash 73000 ...View the full answer
Related Video
This video is about ways to attempt consolidated balance sheet questions. since the unconsolidated financial statements of parent and subsidiary companies are prepared separately, consolidating the balance sheets of both companies is critical and sometimes becomes complex. the tutorial will guide students on to how questions on attempting questions on consolidated financial statements in an easier yet more effective way.
Students also viewed these Accounting questions
-
On January 1, 2013, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $862,900 cash. At January 1, 2013, Sedonas net assets had a total carrying amount of $622,500....
-
On September 1, 2011, A Company purchased 100 percent of the voting stock of B Company for $480,000 in cash. The separate condensed balance sheets immediately after the purchase were as follows:...
-
On January 1, 2014, Company P purchased 100 percent of the outstanding voting shares of Company S in the open market for $ 80,000 cash. On that date, the separate statements of financial position...
-
The following is the ending balances of accounts at December 31, 2018, for the Weismuller Publishing Company. Additional Information: 1. Prepaid expenses include $120,000 paid on December 31, 2018,...
-
Rotech Co. began operations in January 2011. The information below is for Rotech Co.'s operations for the three months from January to March (the first quarter) of 2012: Expenses for Quarter 1...
-
A $1,000 par value bond that pays interest annually just paid $106 in interest. What is the coupon rate? Q2) A 09.60% coupon, 21-year annual bond is priced at $986. What is the current yield for...
-
For each of the following situations, calculate the standard error of the mean \(s \mathrm{X}^{-}\). a. \(s=7.00 ; N=49\) b. \(s=2.50 ; N=14\) c. \(s=8.90 ; N=23\) d. \(s=25.61 ; N=54\)
-
Consider the following data for the assembly division of Cranberry Watches, Inc., The assembly division uses the weighted- average method of process costing. aDegree of completion: direct materials,...
-
1. Is Integrated Marketing campaign truly integrated and how to establish Promotion Mix reflect on your understanding of IMC and how it fits with Marketing (particularly marketing mix and the 4Ps. ...
-
Consider the following MAILORDER relational schema describing the data for a mail order company. PARTS(Pno, Pname, Qoh, Price, Olevel) CUSTOMERS(Cno, Cname, Street, Zip, Phone) EMPLOYEES(Eno, Ename,...
-
Maxwell Industries paid $18 per share for 80 percent of the 10,000 outstanding shares of Kendall Hall. The balance sheet of Kendall Hall and additional market value information follow. a. Compute the...
-
O'Leary Enterprises began investing in short-term equity securities in 2011. The following information was extracted from its 2011 internal financial records. Houser and Miller were classified as...
-
In Exercises verify that the infinite series diverges. n=1 n n+1
-
Write a Hoare logic proof (decorated program) to show that the given Hoare triple holds and the program always terminates (hint: what is a ranking function?). 10 Ay>0} 2 int r = x; 3 int q = 0%; 4...
-
Examine key criteria related to stock investments. Understand a company's business, operating strategy, and financial performance, as well as the industry within which a company operates Evaluate a...
-
Based on the information that you have learned in the module, you have been asked to create a PowerPoint presentation that provides the procedures for using both of the methods. In addition, you...
-
Monopolist will expand output only in the elastic portion of its demand curve. Why?
-
Explain what are the effects of a strong or weak dollar upon business.
-
The transcontinental railroads completed in the 1860s, 1870s, and 1880s all bypassed the ____. a) Northeast b) Midwest c) South d) mountain states e) Far West
-
Consider the activities undertaken by a medical clinic in your area. Required 1. Do you consider a job order cost accounting system appropriate for the clinic? 2. Identify as many factors as possible...
-
On the Forbes 2018 list of the Worlds Billionaires, Jeff Bezos, founder and CEO of Amazon, ranks at the top with a net worth of $112 billion. Does this richest man in the world face scarcity, or does...
-
Garmen Oil Company recently discovered an oil field on one of its properties in Texas. In order to extract the oil, the company purchased drilling equipment on January 1, 2017, for $800,000 cash and...
-
Webb Net Manufacturing purchased a new net weaving machine on January 1, 2015, for $500,000. The new machine has an estimated life of five years and an estimated salvage value of $100,000. It is...
-
The following financial information was taken from the records of Frederickson and Peffer. a. Reconstruct the entry that recorded the sale of equipment during 2017. b. How much equipment was...
-
Provide References In September of 2015, the EPA issued Volkswagen ( OTCPK:VLKAY ) a notice of violation of the Clean Air Act of 1963. The EPA accused the Volkswagen Group of intentionally...
-
2. Find c such that A is invertible 1 0 A= -1 -1 3 1 0 2c -4]
-
Futura Company purchases the 4 0 , 0 0 0 starters that it installs in its standard line of farm tractors from a supplier for the price of $ 8 . 4 0 per unit. Due to a reduction in output, the company...
Study smarter with the SolutionInn App