Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of...

 

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Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of acquisition, Hisham Company reported assets and liability with book values of $840,000 and $330,000, respectively. Common stock outstanding of $160,000and retained earnings of $350,000. The book values and fair values of Hisham's assets and liabilities were identical except for land, which had increased in value by $40,000, and inventories, which has decreased by $14,000. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Madhav acquired its ownership of Hisham for $502,000. Madhav Company obtained 100 percent of Hisham Company's on January 1, 20X6. At the date of acquisition, Hisham Company reported assets and liability with book values of $840,000 and $330,000, respectively. Common stock outstanding of $160,000and retained earnings of $350,000. The book values and fair values of Hisham's assets and liabilities were identical except for land, which had increased in value by $40,000, and inventories, which has decreased by $14,000. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Madhav acquired its ownership of Hisham for $502,000.

Answer rating: 100% (QA)

1 Dr Cash 502000 Cr Hisham Co 350000 Cr Madhav Co Shar... View the full answer