On January 1, 2024, Marigold Company purchased 8.568 shares of Swifty Company's common stock for $123,000....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, Marigold Company purchased 8.568 shares of Swifty Company's common stock for $123,000. Immediately after the stock acquisition, the statements of financial position of Marigold and Swifty appeared as follows: Assets Cash Accounts receivable Inventory Investment in Swifty Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable. Common stock, $10 par value Other contributed capital Retained earnings Total Marigold $39.070 57.650 42.760 123.000 166.480 (49.410) $379,550 $16.690 38.220 119,450 145,280 59.910 $379.550 Swifty $20.190 29,760 22.680 111,840 (21,420) $163,050 $26.400 107,100 16,480 13.070 $163,050 (b) Prepare a consolidated balance sheet workpaper as of January 1, 2024. Cash Accounts Receivable Inventory Investment in Swifty Difference between Implied and Book Value Plant Assets Accumulated Depreciation Total Current Liabilities Mortgage Note Payable Common Stock: Marigold Company Swifty Company Other Contributed Capital Marigold Company 39,070 57,650 42,760 123.000 166,480 (49.410) 379.550 16,690 38,220 119,450 Swifty Company 20,190 29,760 22,680 111,840 (21,420) 163,050 26.400 MARIGOLD COMPANY AND SUBSIDIARY SWIFTY Consolidated Balance Sheet Workpaper January 1, 2024 107,100 $ Debit Eliminations $ Credit Noncontrolling Interest Consolidated Balance On January 1, 2024, Marigold Company purchased 8.568 shares of Swifty Company's common stock for $123,000. Immediately after the stock acquisition, the statements of financial position of Marigold and Swifty appeared as follows: Assets Cash Accounts receivable Inventory Investment in Swifty Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable. Common stock, $10 par value Other contributed capital Retained earnings Total Marigold $39.070 57.650 42.760 123.000 166.480 (49.410) $379,550 $16.690 38.220 119,450 145,280 59.910 $379.550 Swifty $20.190 29,760 22.680 111,840 (21,420) $163,050 $26.400 107,100 16,480 13.070 $163,050 (b) Prepare a consolidated balance sheet workpaper as of January 1, 2024. Cash Accounts Receivable Inventory Investment in Swifty Difference between Implied and Book Value Plant Assets Accumulated Depreciation Total Current Liabilities Mortgage Note Payable Common Stock: Marigold Company Swifty Company Other Contributed Capital Marigold Company 39,070 57,650 42,760 123.000 166,480 (49.410) 379.550 16,690 38,220 119,450 Swifty Company 20,190 29,760 22,680 111,840 (21,420) 163,050 26.400 MARIGOLD COMPANY AND SUBSIDIARY SWIFTY Consolidated Balance Sheet Workpaper January 1, 2024 107,100 $ Debit Eliminations $ Credit Noncontrolling Interest Consolidated Balance
Expert Answer:
Answer rating: 100% (QA)
Step 1 Identify the amounts from both companies separate balance sheets The first step is to identify the balances of all relevant accounts from both ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
VR-X issued 100,000 common stocks at par value of $12 to expand its business 3 years ago specialized in interior design services. The company has just paid a dividend of $2 per share and predicts for...
-
What strategies can organizations employ to proactively identify and mitigate budgetary risks, such as cost overruns, revenue shortfalls, and unforeseen contingencies, in order to safeguard financial...
-
Consider the problem of making change for n cents using the fewest number of coins. Assume that each coin's value is an integer. 2. Suppose that the available coins are in the denominations that are...
-
What is the principle of corresponding states?
-
How do regulators want banks to use derivatives - for what purpose?
-
Diana Corporation provides the following information for 2017: Calculate the total manufacturing costs incurred in 2017. Beginning inventory of direct materials, 1/1/2017 Purchases of direct...
-
Change from Fair Value to Equity On January 1, 2010, Sandburg Co. purchased 25,000 shares (a 10% interest) in Yevette Corp. for $1,400,000. At the time, the book value and the fair value of Yevettes...
-
Find resultant of the force system shown 500 N 1000 N 60 30 45 100 N 200 N
-
To keep track of office furniture, computers, printers, and so on, the FOUNDIT Company uses the table structure shown in Table P6.5. a. Given that information, write the relational schema and draw...
-
In relation to initial recognition: a) How would the initial recognition of the above transactions be reported, and why? b) What factors are used to determine the cost that can be capitalized and...
-
In order to prepare an audit on CSR and risk, perform some research on what should be audited in both CSR and risk. Find at least 3 outside sources for each and ensure they're listed in a references...
-
Has Knowledge Management come and gone? There was a time when Knowledge Management was the next big thing. Is it still? Having read many articles on beyond Knowledge Management, has Knowledge...
-
How can mindfulness, along with neuroscience/neuroleadership help a leader focus his or her followers? Please not that you do not have to cite the articles or include the references. It should...
-
For a MARR of 12%, which one of the two mutually exclusive machines should be selected? The increase in costs and benefits trend does not change when a new machine is put into action (The cost keep...
-
Peter's Pawnshop was recently audited, which disclosed a second set of books. A substantial sales tax understatement was determined for the audit period. Peter did not file his final return for the...
-
1. Anne is employed as a chief financial officer in Bee Sdn Bhd. Anne is entitled to leave passage benefits as per her employment contract. In January 2021, she went to Korea as part of her leave...
-
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85? Select one: O a. $325 O b. $5,500 O c. $2,750 O d. $1,175
-
Since the early 1990s, woodstove sales have declined from 1,200,000 units per year to approximately 100,000 units per year. The decline has occurred because of (1) stringent new federal EPA...
-
Refer to Problem 8.25 for Stebbins Corporation for Year 1, its first year of operations. Exhibit 8.31 shows the amounts for the Canadian subsidiary for Year 2. The average exchange rate during Year 2...
-
Explain the two roles of book value of common shareholders equity in the residual income valuation approach.
-
The scientific name of a species (a) consists of two parts, the family name and the species name. (b) is always underlined. (c) is always in Latin. (d) includes only the species name.
-
Life would be impossible without bacteria because (a) they photosynthesize. (b) they function in decomposition. (c) they reproduce quickly. (d) they occupy habitats where no other organisms can...
-
Why are birds considered reptiles in an evolutionary classification system? (a) Feathers evolved from scales. (b) Birds are more similar to reptiles than was previously thought. (c) Birds are...
Study smarter with the SolutionInn App