Banner Corporation acquired 100 percent of Drawer Company's common at underlying book value. At the acquisition...
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Banner Corporation acquired 100 percent of Drawer Company's common at underlying book value. At the acquisition date, the book value and fair value of all Drawer's assets and liabilities were equal. Banner use the equity method in accounting for the investment. Balance sheet information provided by the companies at December 31, 20X8, is as follow: Required Cash Account Receivable Inventory Fixed Assets (net) Investment in Drawer Company Stock Total Debit Account Payable Note Payable Common Stock Retained Earnings Total Credit Banner Corporation 40,000 120,000 180,000 350,000 170,000 860,000 65,000 350,000 150,000 295,000 860,000 Drawer Company 20.000 70,000 90,000 240,000 420,000 30,000 220,000 90,000 80,000 420,000 Prepare a consolidated balance sheet for Banner at December 31, 20X8 Banner Corporation acquired 100 percent of Drawer Company's common at underlying book value. At the acquisition date, the book value and fair value of all Drawer's assets and liabilities were equal. Banner use the equity method in accounting for the investment. Balance sheet information provided by the companies at December 31, 20X8, is as follow: Required Cash Account Receivable Inventory Fixed Assets (net) Investment in Drawer Company Stock Total Debit Account Payable Note Payable Common Stock Retained Earnings Total Credit Banner Corporation 40,000 120,000 180,000 350,000 170,000 860,000 65,000 350,000 150,000 295,000 860,000 Drawer Company 20.000 70,000 90,000 240,000 420,000 30,000 220,000 90,000 80,000 420,000 Prepare a consolidated balance sheet for Banner at December 31, 20X8
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Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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