t of Stylus Corporation’s stock on January 2, 20X3, for $85,400 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Pencil Company Stylus Corporation Book Value Fair Value Book Value Fair Value Cash $ 202,000 $ 202,000 $ 65,000 $ 65,000 Other Assets 401,000 401,000
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Pencil Company acquired 70 percent of Stylus Corporation’s stock on January 2, 20X3, for $85,400 cash. Summarized
| Pencil Company | Stylus Corporation | |||
|---|---|---|---|---|
| Book Value | Fair Value | Book Value | Fair Value | |
| Cash | $ 202,000 | $ 202,000 | $ 65,000 | $ 65,000 |
| Other Assets | 401,000 | 401,000 | 124,000 | 124,000 |
| Total Debits | $ 603,000 | $ 189,000 | ||
| Current Liabilities | $ 87,000 | 87,000 | $ 67,000 | 67,000 |
| Common Stock | 287,000 | 65,000 | ||
| 229,000 | 57,000 | |||
| Total Credits | $ 603,000 | $ 189,000 |
Required:
Prepare a consolidated balance sheet immediately following the acquisition.
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- Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,20x2. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000…Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000…Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000…
- Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000…Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet data for the two companies immediately following the acquisition TOP SUN Cash $ 49,000 $ 30,000 Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 25,000 Buildings & Equipment 277,000 235,000 Investment in Sun Corporation 198,000 Total Assets $844,000 $405,000 Accounts Payable $ 61,500 $ 28,000 Taxes Payable 95,000 37,000 Bonds Payable 280,000…Poppy Corporation owns 60 percent of Seed Company’s common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: PoppyCorporation SeedCompany Assets Cash $ 86,000 $ 31,000 Accounts Receivable 83,000 53,000 Inventory 114,000 91,000 Buildings and Equipment 680,000 350,000 Less: Accumulated Depreciation (210,000 ) (80,000 ) Investment in Seed Company Stock 138,000 Total Assets $ 891,000 $ 445,000 Liabilities and Owners’ Equity Accounts Payable $ 121,000 $ 15,000 Bonds Payable 250,000 200,000 Common Stock ($10 par value) 300,000 100,000 Retained Earnings 220,000 130,000 Total Liabilities and Owners’ Equity $ 891,000 $ 445,000 The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10…
- Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 66,000 $ 36,000 Accounts Receivable 85,000 39,000 Inventory 107,000 65,000 Buildings and Equipment (net) 224,000 151,000 Investment in Faith Corporation Stock 207,000 Total Assets $ 689,000 $ 291,000 Liabilities and Stockholders’ Equity Accounts Payable $ 82,000 $ 23,000 Notes Payable 142,000 61,000 Common Stock 99,000 43,000 Retained Earnings 366,000 164,000 Total Liabilities and Stockholders’ Equity $ 689,000 $ 291,000 At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $16,000. Required:…Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows: Pawn Sox Current assets-net $ 200,000 $ 50,000 Property, plant, and equipment-net 1,000,000 600,000 Investment in Sox 558,000 $1,758,000 $650,000 Current liabilities $ 100,000 $ 30,000 Capital stock 800,000 400,000 Retained earnings 858,000 220,000 $1,758,000 $650,000 Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values. Consolidated total assets of Pawn and Sox, at December 31, 20X1, will be ____. a. $1,785,000 b. $1,850,000 c. $2,343,000 d. $2,408,000Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4.The balance sheets of the two companies as at that date were as follows: Redcliff Ltd ABC Ltd$ $ $Current assets 240,000 28,800Non-current assets:Investment in ABC at cost 18,000Other asset 96,000 114,000 9,600Total assets 354,000 38,400Current liabilities 198,000 20,400Net assets 156,000 18,000Paid-up capital 120,000 12,000Retained profits 36,000 6,000Owners’ equity 156,000 18,000Required:Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as it 31 december 20X4.
- Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows: Pawn Sox Current assets-net $ 200,000 $ 50,000 Property, plant, and equipment-net 1,000,000 600,000 Investment in Sox 558,000 $1,758,000 $650,000 Current liabilities $ 100,000 $ 30,000 Capital stock 800,000 400,000 Retained earnings 858,000 220,000 $1,758,000 $650,000 Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values. The consolidated balance sheet of Pawn and Sox at December 31, 20X1 will show a. Investment in Sioux, $558,000. b. Capital stock, $800,000. c. Retained earnings, $1,078,000. d. Noncontrolling interest, $65,000.On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is a balance sheet data for the companies prior to the business combination and immediately following the combination: Ajax Chelsea Combined Corporation Corporation Cash $ $ 75,000 $ 35,000 $ 110,000 Accounts 92,000 30,000 122,000 receivable Inventory 45,000 43,000 98,000 Equipment (net) 420,000 150,000 620,000 Goodwill XXX Total $ 632,000 $ 258,000 XXX Assets Accounts $ 375,000 $ 125,000 $ 500,000 payable Common stock, $2 120,000 40,000 200,000 par Additional 85,000 30,000 245,000 paid-in capital Retained 52,000 63,000 XX earnings Total $ 632,000 $ 258,000 XXX Liabilities & Equity What balance in Retained earnings will the combined entity report immediately following the combination? Select one: O a. $ 52,000 O b. $ 0 O c. $ 63,000 O d. $ 115,000Elston Company Balance Sheet December 31, 2004 Assets 800,000 Liabilities 100,000 Capitalstock 400,000 Retainedearnings 300,000 Totalequities 800,000 Alley Company Balance Sheet December 31, 2004 Assets 600,000 Liabilities 150,000 Capitalstock 370,000 Retainedearnings 80,000 Totalequities 600,000 1. If Elston Company acquired a 20% interest in Alley Company on December 31, 2004 for $130,000 and the fair value method of accounting for the investment were used, the amount of the debit to Investment in Alley Company Stock would have been $90,000. $74,000. $130,000. $120,000. 2. If Elston Company acquired a 30% interest in Alley Company on December 31, 2004 for $150,000 and the equity method of accounting for the investment were used, the amount of the debit to Investment in Alley Company Stock would have been $190,000. $150,000. $120,000. $135,000. 3. If Elston Company acquired a 20% interest in Alley Company on December 31, 2003 for $90,000 and during 2005 Barnes…
