Patel Company purchased all the outstanding common stock of Singh Company on December 31, 2011. Just before
Question:
Patel used current assets of $710,000 to acquire the stock of Singh. The excess of this purchase price over the book value of Patels net assets is determined to be attributable $20,000 to Singhs plant and equipment and the remainder to goodwill.
Instructions
(a) Prepare the entry for Patel Companys acquisition of Singh Company stock.
(b) Prepare a consolidated worksheet at December 31, 2011.
(c) Prepare a consolidated balance sheet at December 31,2011.
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...
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Related Book For
Financial Accounting
ISBN: 978-0470507018
7th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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