Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for...
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Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $301,700. On that date, the noncontrolling interest had a fair value of $129,300 and the book value of Square's net assets was $395,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired. PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20X9 Item Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in Square Company Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Square Company Accounts Payable Common Stock Retained Earnings Total Plaza Corporation Debit Credit Square Company Debit Credit $ 95,300 $ 99,000 218,000 117,000 278,000 258,000 304,552 183,000 32,000 27,000 133,000 22,000 4,000 $ 303,000 $203,000 47,252 55,000 27,000 186,000 165,000 546,600 238,000 $1,137,852 $1,137,852 $633,000 $633,000 On January 1, 20X9, Plaza's Inventory contained $46,000 of unrealized Intercompany profits recorded by Square. Square's Inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20x8 inventories to unrelated companies in 20X9. During 20X9, Square sold Inventory costing $42,000 to Plaza for $67,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Entry A 1 Common stock Retained earnings Answer is not complete. Accounts Income from Square Company NCI in NI of Square Company Dividends declared Investment in Square Company NCI in NA of Square Company Debit 165,000 Credit 238,000 47,252 4,000 B 2 Land Goodwill 14,000 22,000 Investment in Square Company 25,200 NCI in NA of Square Company 10,800 3 D 4 Investment in Square Company NCI in NA of Square Company Cost of goods sold Sales Cost of goods sold Inventory Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $301,700. On that date, the noncontrolling interest had a fair value of $129,300 and the book value of Square's net assets was $395,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired. PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20X9 Item Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in Square Company Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Square Company Accounts Payable Common Stock Retained Earnings Total Plaza Corporation Debit Credit Square Company Debit Credit $ 95,300 $ 99,000 218,000 117,000 278,000 258,000 304,552 183,000 32,000 27,000 133,000 22,000 4,000 $ 303,000 $203,000 47,252 55,000 27,000 186,000 165,000 546,600 238,000 $1,137,852 $1,137,852 $633,000 $633,000 On January 1, 20X9, Plaza's Inventory contained $46,000 of unrealized Intercompany profits recorded by Square. Square's Inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20x8 inventories to unrelated companies in 20X9. During 20X9, Square sold Inventory costing $42,000 to Plaza for $67,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Entry A 1 Common stock Retained earnings Answer is not complete. Accounts Income from Square Company NCI in NI of Square Company Dividends declared Investment in Square Company NCI in NA of Square Company Debit 165,000 Credit 238,000 47,252 4,000 B 2 Land Goodwill 14,000 22,000 Investment in Square Company 25,200 NCI in NA of Square Company 10,800 3 D 4 Investment in Square Company NCI in NA of Square Company Cost of goods sold Sales Cost of goods sold Inventory
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Related Book For
Advanced Financial Accounting
ISBN: 9781260772135
13th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
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