To verify the answers found in Part 2 , adjust Acme's column of accounts for the journal entries in Part 1 and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date Prepare consolidated financial statements when goodwill is present This is a continuation of the prior tab ( Investments with Goodwill ) Information is repeated below On January 1 , 2 0 X 4 , Acme Corporation acquired 1 0 0 of the outstanding common stock of Coyote, a foreign company ( amounts translated to USD ) To acquire these shares, Acme issued to the owners of Coyote $ 2 0 0 , 0 0 0 in long term liabilities and 2 0 , 0 0 0 shares of common stock having a par value of $ 1 per share but a fair value of $ 2 0 per share Acme paid $ 3 0 , 0 0 0 to accountants, lawyers, and brokers for assistance in the acquisition and another $ 1 2 , 0 0 0 in connection with stock issuance costs Prior to these transactions, the balance sheets for the two companies were as follows Acme's appraisal of Coyote's fair values deemed three accounts to be undervalued Inventory by $ 5 , 0 0 0 , Land by $ 2 0 , 0 0 0 , and Buildings by $ 3 0 , 0 0 0 Acme plans to maintain Coyote's separate legal identity and to operate Coyote as a wholly owned subsidiary Show all images Show all images Show all images done loading

Question

To verify the answers found in Part 2 ,  adjust Acme's column of accounts for the journal entries in Part 1  and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date  Prepare consolidated financial statements when goodwill is present This is a continuation of the prior tab ( Investments with Goodwill )    Information is repeated below  On January 1 , 2 0 X 4 ,  Acme Corporation acquired 1 0 0    of the outstanding common stock of Coyote, a foreign company ( amounts translated to USD )    To acquire these shares, Acme issued to the owners of Coyote $ 2 0 0 , 0 0 0  in long   term liabilities and 2 0 , 0 0 0  shares of common stock having a par value of $ 1  per share but a fair value of $ 2 0  per share  Acme paid $ 3 0 , 0 0 0  to accountants, lawyers, and brokers for assistance in the acquisition and another $ 1 2 , 0 0 0  in connection with stock issuance costs  Prior to these transactions, the balance sheets for the two companies were as follows  Acme's appraisal of Coyote's fair values deemed three accounts to be undervalued  Inventory by $ 5 , 0 0 0 ,  Land by $ 2 0 , 0 0 0 ,  and Buildings by $ 3 0 , 0 0 0    Acme plans to maintain Coyote's separate legal identity and to operate Coyote as a wholly owned subsidiary  Show all images Show all images Show all images done loading

SolutionInn · Accepted Answer

The Answer is in the image, click to view ...

Question: ? To verify the answers found in Part 2 , ?adjust Acme's column of accounts for the journal entries in Part 1 ?and then prepare

Step by Step Solution

Students Have Also Explored These Related Accounting Questions!