Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $710,000 in cash. Of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $710,000 in cash. Of this amount, $55,000 was attributed to equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2018. Pavin reports $550.000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500. During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35.000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $58,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler. Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accor Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity payable $ $ $ $ $ Pavin (815,000) 480,000 150,000 61,000 B 8 (133,750) (257,750) (370,000) (257,750) 180,000 (447,758) 242,000 200,000 787,758 8 270,000 8 $ 1,419,750 $ 113,000) (550,000) 25,000 (334,000) (447,750) $ (1,419,750) Stabler $ (555,000) 265,000 183,500 8 (27,250) 8 8 $ (133,750) $ (411,000) (133,750) 102,000 $ (442,750) $ 60,000 112,000 8 268,750 566,000 0 $ 1,006,750 $ (294,000) (125,000) 8 (145,000) (442,750) $(1,006,750) Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries Into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered.as.positive. Negative amounts for the Consolidated Totals.column.should be entered with a minus.slan.... Accounts Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin Land, buildings, and equipment (net) Trademarks PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Pavin S (815,000) $ 480,000 150,000 61,000 $ S S 0 0 (133,750) (257,750) $ (370,000) (257,750) 180,000 (447,750) S 242,000 $ 200,000 707,750 0 270,000 0 Stabler (555,000) 265.000 183,500 0 (27,250) 0 0 (133,750) (411,000) (133,750) 102,000 (442,750) 60,000 112,000 0 268,750 566,000 0 1,008,750 (294,000) (125,000) Total assets S 1,419,750 S Accounts payable (113,000) Bonds payable (550,000) Discount on bonds 25,000 Common stock (334,000) (145,000) Retained earnings (447,750) (442,750) Total liabilities and stockholders' equity S (1,419,750) S (1,006,750) S 0 Consolidation Entries Credit Debit 0 S 0 Consolidated Totals $ S S S 0 0 0 0 0 Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $710,000 in cash. Of this amount, $55,000 was attributed to equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2018. Pavin reports $550.000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500. During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35.000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $58,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler. Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accor Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity payable $ $ $ $ $ Pavin (815,000) 480,000 150,000 61,000 B 8 (133,750) (257,750) (370,000) (257,750) 180,000 (447,758) 242,000 200,000 787,758 8 270,000 8 $ 1,419,750 $ 113,000) (550,000) 25,000 (334,000) (447,750) $ (1,419,750) Stabler $ (555,000) 265,000 183,500 8 (27,250) 8 8 $ (133,750) $ (411,000) (133,750) 102,000 $ (442,750) $ 60,000 112,000 8 268,750 566,000 0 $ 1,006,750 $ (294,000) (125,000) 8 (145,000) (442,750) $(1,006,750) Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries Into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered.as.positive. Negative amounts for the Consolidated Totals.column.should be entered with a minus.slan.... Accounts Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin Land, buildings, and equipment (net) Trademarks PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Pavin S (815,000) $ 480,000 150,000 61,000 $ S S 0 0 (133,750) (257,750) $ (370,000) (257,750) 180,000 (447,750) S 242,000 $ 200,000 707,750 0 270,000 0 Stabler (555,000) 265.000 183,500 0 (27,250) 0 0 (133,750) (411,000) (133,750) 102,000 (442,750) 60,000 112,000 0 268,750 566,000 0 1,008,750 (294,000) (125,000) Total assets S 1,419,750 S Accounts payable (113,000) Bonds payable (550,000) Discount on bonds 25,000 Common stock (334,000) (145,000) Retained earnings (447,750) (442,750) Total liabilities and stockholders' equity S (1,419,750) S (1,006,750) S 0 Consolidation Entries Credit Debit 0 S 0 Consolidated Totals $ S S S 0 0 0 0 0
Expert Answer:
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these finance questions
-
Pavin acquires all of Stablers outstanding shares on January 1, 2009, for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned...
-
Pavin acquires all of Stabler's outstanding shares on January 1, 2011, for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned...
-
Pavin acquires all of Stabler's outstanding shares on January 1, 2009 for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned...
-
Elm Corp. makes two products: C and D. The following data have been summarized: Indirect manufacturing cost information includes the following: The company plans to manufacture 250 units of each...
-
1. Find the magnetic field at 0.250 m from a long wire carrying a current of 15.0 A. 2. Find the magnetic field at 0.500 m from a long wire carrying a current of 7.50 A. 3. What is the current in a...
-
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Amber paid for the lathe by...
-
Which corporate characteristic is a disadvantage? a. Double taxation b. Mutual agency c. Limited liability d. None of the above
-
For each of the following independent cases, identify the missing value(s). Precision Sample estimate Reliability Precision interval Sampling risk 20 56 95% 10 80 D) 75 to 85 10% 98% 111 to 131 IF)
-
7. [6 Marks]. (a). From the set of vectors {(1, 2, 1), (4, 5, 6), (4, 3, 10), (5, 3, 5), (2, 4,-2)} select two pairs of vectors that are perpendicular to each other. (b) Are any of these vectors...
-
Direct Co sells an item whose demands over the next 4 months are 100, 140, 210, and 180 units, respectively. The company can stock just enough supply to meet each month's demand, or it can overstock...
-
3. Yvonne and Tanya each make regular deposits into an annuity. Yvonne deposits $150 at the end of each month at 8% per year compounded monthly Tanya deposits $450 at the end of each quarter at 8%...
-
A rectangular wing with a NACA 1412 airfoil section spans the test section of a wind tunnel. The test speed is 176 f/s. The wing is at an angle of attack of 4 degrees. The span of the airfoil is 3...
-
A baseball (m = 145g) traveling 33 m/s moves a fielder's glove backward 26 cm when the ball is caught. Part A What was the average force exerted by the ball on the glove? Express your answer to two...
-
As you meet with the team to discuss the Paris expansion, you learn that there is a need for some further work onboarding new employees who will be joining the team in Paris. With the rapid growth of...
-
Background: We are doing a project in which we are consulting for ABC company about the economy in Viet Nam , they want to know all the information about (the size of the economy, per capita income,...
-
A force F of magnitude 5.20 units acts on an object at the origin in a direction = 52.0 above the positive x-axis. (See the figure below.) A second force F of magnitude 5.00 units acts on the object...
-
Address the needs of clients 3 based on the corresponding data and answer the question. The theme is to calculate present value, future value and annuity. Here are examples of needs. they felt that...
-
What is the ideal number of children to have? This question was asked on the Sullivan Statistics Survey I. Draw a dot plot of the variable Children from theSullivanStatsSurveyI data set at...
-
On January 1, 2012, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in Great Britain for consideration paid of 52,000,000 British pounds (), which was equal to fair...
-
Assuming that MNC entered into a forward contract to sell 10 million South Korean won on December 1, 2013, as a fair value hedge of a foreign currency receivable, what is the net impact on its net...
-
On December 1, 2013, a state government awards a city government a grant of $1 million to be used specifically to provide hot lunches for all schoolchildren. No money is received until June 1, 2014....
-
Canada's Wonderland is an amusement park in Vaughan, Ontario. Over 3.5 million people visit Wonderland each year between May and October. It covers 330 acres and has more than 200 rides and...
-
The accounts of Custom Pool Service, Inc., follow with their normal balances at June 30, 2020. The accounts are listed in no particular order. Prepare the company's trial balance at June 30, 2020,...
-
Refer to exercise E2-17. Record the transactions in the journal of Joseph Ohara Dental Clinic Ltd. List the transactions by date, and give an explanation for each transaction. Exercise 2-17 Joseph...
Study smarter with the SolutionInn App