On December 31, 2016, Pinta Company purchased 80% of the outstanding common stock of Snead Company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On December 31, 2016, Pinta Company purchased 80% of the outstanding common stock of Snead Company for cash. At the time of acquisition, Snead Company's balance sheet was as follows: Current assets Plant and equipment Land Total assets $ 1,680,000 1,580,000 280,000 $3,540,000 Liabilities Common stock, $10 par value Other contributed capital Retained earnings Total Treasury stock at cost, 5,000 shares Total equities $ 1,320,000 1,440,000 700,000 240,000 $3,700,000 <160,000> $3,540,000 Required: Prepare the elimination entry(s) required for the preparation of a consolidated balance sheet workpaper on December 31, 2016, assuming the purchase price of the stock was $1,670,000. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land. On December 31, 2016, Pinta Company purchased 80% of the outstanding common stock of Snead Company for cash. At the time of acquisition, Snead Company's balance sheet was as follows: Current assets Plant and equipment Land Total assets $ 1,680,000 1,580,000 280,000 $3,540,000 Liabilities Common stock, $10 par value Other contributed capital Retained earnings Total Treasury stock at cost, 5,000 shares Total equities $ 1,320,000 1,440,000 700,000 240,000 $3,700,000 <160,000> $3,540,000 Required: Prepare the elimination entry(s) required for the preparation of a consolidated balance sheet workpaper on December 31, 2016, assuming the purchase price of the stock was $1,670,000. Any difference between the value implied by the purchase price of the investment and the book value of net assets acquired relates to subsidiary land.
Expert Answer:
Related Book For
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
Aston Ltd is a luxury goods manufacturer in the process of diversifying its business. Aston Ltd has reached an agreement with Chivas Ltd, a small basic materials company, to take over Chivas Ltd. The...
-
Assume that you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been...
-
Balance sheets for P Company and S Company on August 1, 2014, are as follows: P Company S Company Cash 165500 106000 Receivables 366000 126000 Inventory 261000 108000 Investment in bonds 306000 0...
-
Is it possible to produce an iron-carbon alloy that has a minimum tensile strength of 690 MPa (100,000 psi) and a minimum ductility of 40%RA? If so, what will be its composition and microstructure...
-
The Kroger Co. reported cash income taxes paid of $ 679 million for the year ended February 1, 2014 (fiscal year 2013). In addition, it reported the following: a. What is the LIFO reserve for Kroger...
-
Based on a Survey of Consumer Payment Choice, researchers from the Federal Reserve Bank of Boston estimated that the average consumer, 18 years of age and older, held about $340 in currency. However,...
-
Following is an inventory test count working paper that documents Donald Schwab's physical inventory observations in the Hillsdale Company's roofing materials warehouse on December 31, 1999, the date...
-
Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a company that designs and manufactures kayaks. The kayak-manufacturing facility is located just a few minutes from the...
-
VideoSecu produces wall mounts for flat panel television sets. Assume the forecasted income statement for next year is as follows. Sales ($28 per unit) Cost of good sold ($19 per unit). Gross...
-
Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect...
-
On September 2, 2022, Rico began working temporarily as an administrative assistant for a professional basketball team, the Pistols. Within a couple of months, Rico began working full-time under a...
-
OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the...
-
An investor has the following assets: $ 1 2 , 0 0 0 in bonds with an expected return of 7 % . $ 1 5 , 0 0 0 in equities with an expected return of 1 5 % . $ 1 8 , 0 0 0 in real estate with an...
-
Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year Units sold this year Variable selling and...
-
American Food Services, Incorporated, acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. In payment for the...
-
You are buying a new house. Current mortgage rates are 6.5% APR. Lenders are offering 30 year mortgages with monthly payments. They require 20% down payments and will finance the remaining 80% with...
-
SAMPLE STUDENT ESSAY: "Closet Conundrum" by Jeanette Gregory 1- Identify the thesis of the essay and write it out (TWO activities). 2-What is the general subject classified in this essay? 3- What is...
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
The board of directors of Carlie Services Inc. authorized the issuance of $400,000 face value, 20-year, 7 percent bonds dated April 1, 2016, and maturing on April 1, 2036. Interest is payable...
-
Rosie Wilsman and Rosa Escobedo own The Spring Flower Shop. The partnership agreement provides that Wilsman can withdraw $5,000 a month and Escobedo $4,500 a month in anticipation of profits. The...
-
The following transactions took place at Extreme Bikers. Indicate the general ledger account numbers that would be debited and credited to record each transaction. GENERAL LEDGER ACCOUNTS...
-
The reciprocating mass, crank radius, and connecting-rod length of each of the cylinders in a two-cylinder in-line engine are given by \(m, r\), and \(l\), respectively. The crank angles of the two...
-
The force transmitted by an internal combustion engine of mass \(500 \mathrm{~kg}\), when placed directly on a rigid floor, is given by \[F_{t}(t)=(18,000 \cos 300 t+3600 \cos 600 t) \mathrm{N}\]...
-
A shaft, having a stiffness of \(3.75 \mathrm{MN} / \mathrm{m}\), rotates at \(3600 \mathrm{rpm}\). A rotor, having a mass of \(60 \mathrm{~kg}\) and an eccentricity of 2000 microns, is mounted on...
Study smarter with the SolutionInn App