Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 8,200 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $78,650. However, its equipment (with a five-year remaining life) was undervalued by $8,050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $36,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Нaynes $ (675,000) $(269,000) 503,000 Not given 90,000 Turner Revenues Expenses Investment income 157,000 Dividends declared 50,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Наynes $ (822,000) $(336,500) 526, 300 Not given 110,000 Turner Revenues Expenses Investment income 192,200 Dividends declared 30,000 310,000 Equipment 517,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? а. b. < Req A to C2 Req D > Req A to C2 Req D Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 > Prepare entry *C if the parent used the initial value method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries
Expert Answer:
Answer rating: 100% (QA)
Stepbystep solution Step 1 of 7 A a Company H obtained 100 of ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
Students also viewed these accounting questions
-
Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2011, by issuing 9,000 shares of $10 par value common stock . Hayness shares had a $15 per share fair value. On that...
-
Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2012, by issuing 9,000 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that...
-
Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2017, by issuing 9,000 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that...
-
Consider wave-free laminar condensation on a vertical isothermal plate of length L, providing an average heat transfer coefficient of h L . If the plate is divided into N smaller plates, each of...
-
What are the three primary components of the statement of owners' equity and what information is disclosed in each component?
-
5-Star Adventures Inc. financed its $1,000,000 expansion by issuing on January 1, 2020, a 5%, 10-year bond dated the same day with annual interest payments to be made each December 31. The market...
-
For each of the following situations, calculate a \(95 \%\) confidence interval for the mean ( \(\sigma\) known), beginning with the step, "Identify the critical value of \(z\)." X 50.00, X = 3.00 X...
-
1. Barring illegal activities, why do you think that employees in the organizations featured in the case do not realize themselves the dangers of loosely managing proprietary and sensitive...
-
Annual interest rates are 10%. You buy a smartphone for $300 and use it for two years. Each month, you pay a $30 fee for your asm data plan. At the end of two years, you decide to upgrade to the...
-
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school, WTI also offers training to groups in off-site locations....
-
A product that is very labor-intensive assembled at Aydin's Aero Structure eCommerce, TX has an average labor cost of $20/hr. Time for the very first unit = 10 hours The learning curve percentage is...
-
Late one Saturday evening, Joe and Mark decide to rob a local convenience store. Mark has a loaded shotgun for the robbery, but both men agree beforehand that the shotgun is only to scare the cashier...
-
BC was a private equity firm. It had funded the roll-up of multiple small businesses and appointed Mr. Rakesh as CEO to lead the newly created firm. The founders of the acquired firms had different...
-
Infobridge Private Limited is a product development company. It started with two employees and has now grown to 275 employees. This huge growth occurred because of its innovative product development...
-
An employee of a chemical company, Ariola, was concerned about some harmful carbon emissions, and increased carbon footprints which had been overlooked by environmentalists and political groups or...
-
This chapter discusses the use of job redesign to reduce turnover. Do you think this is feasible in this case? Why or why not? If so, how should the job be redesigned?
-
A differential band brake is shown in Figure. The diameter of the drum is 800 mm. The coefficient of friction between the band and the drum is 0.3 and the angle of embrace is 240. When a force of 600...
-
Recall that Chapter 8 described the binary search algorithm for finding a particular entry in an ordered list. The idea behind binary search is to begin looking in the exact center of the list. If...
-
A private not-for-profit entity sends a direct mail solicitation for monetary donations. Other information is included with the mailing. Under what conditions can the organization report part of the...
-
Download Pfizer's 2015 annual report (search Pfizer Investor Relations). Locate the firm's consolidated statement of cash flows and answer the following: Does the firm employ the direct or indirect...
-
Read the following journal article: 25 Years of State and Local Governmental Financial ReportingAn Accounting Standards Perspective, The Government Accountants Journal, Fall 1992. Or, as a second...
-
Quick return motion is incorporated in a shaper, a planer and ____.
-
Length of open belt connecting two pulleys of radii \(r_{1}\) and \(r_{2}\) and at a center distance \(D\) apart, is: (a) \(\pi\left(r_{1}+r_{2} ight)+\left(r_{1}-r_{2} ight)^{2} / D+2 D\) (b)...
-
A motor of \(5 \mathrm{~kW}\) running at \(950 \mathrm{rpm}\) is used in a riveting machine. A flywheel is attached to the machine has a mass of \(100 \mathrm{~kg}\) and radius of gyration of \(0.4...
Study smarter with the SolutionInn App