Part a. Use the data for the Peer Company acquisition of the Sight Company to prepare...

  

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Part a. Use the data for the Peer Company acquisition of the Sight Company to prepare the consolidation entries (Journal Entries) for December 31 of year one. For clarity, use the entry labels like S. A, I and so on. Part b. Use the data for the Peer Company acquisition of the Sight Company to prepare the consolidation entries (Journal Entries) for December 31 of year two. Peer Company acquired of the common stock of Sight Company January 1, year one, for The consideration given was proportional to Sight' fair value. On that date, Sight had the following trial balance: account Additional paid in capital debit credit $100,000 Building (12-year life) $250,000 Common stock 170,000 Current assets 170,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) 300,000 Retained earnings 1/year 1 120,000 Totals $690,000 $690,000 During year one, Sight reported net income of During year one, Sight paid dividends of During year two, Sight reported net income of During year two, Sight paid dividends of On January 1, year one, fair values of certain Sight's accounts were: Land Building Equipment $122,000 $265,000 $172,000 There was no impairment of any goodwill arising from the acquisition. Please use Equity method for Peer to account for its acquisition of Sight Company. 75% $450,000 $50,000 $30,000 $80,000 $40,000 Part a. Use the data for the Peer Company acquisition of the Sight Company to prepare the consolidation entries (Journal Entries) for December 31 of year one. For clarity, use the entry labels like S. A, I and so on. Part b. Use the data for the Peer Company acquisition of the Sight Company to prepare the consolidation entries (Journal Entries) for December 31 of year two. Peer Company acquired of the common stock of Sight Company January 1, year one, for The consideration given was proportional to Sight' fair value. On that date, Sight had the following trial balance: account Additional paid in capital debit credit $100,000 Building (12-year life) $250,000 Common stock 170,000 Current assets 170,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) 300,000 Retained earnings 1/year 1 120,000 Totals $690,000 $690,000 During year one, Sight reported net income of During year one, Sight paid dividends of During year two, Sight reported net income of During year two, Sight paid dividends of On January 1, year one, fair values of certain Sight's accounts were: Land Building Equipment $122,000 $265,000 $172,000 There was no impairment of any goodwill arising from the acquisition. Please use Equity method for Peer to account for its acquisition of Sight Company. 75% $450,000 $50,000 $30,000 $80,000 $40,000

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Part a Consolidation Entries for December 31 of Year One 1 Eliminate the Investment in Sight Company ... View the full answer