Prepare elimination entries for stock acquisition

Assignment Help Financial Accounting
Reference no: EM13705741

Assume that Big Company decides to acquire 100% Little Company for $500,000. Prepare the appropriate journal entries.

Use the equity method being this is a controlled acquisition.

1. Perform the journal entries asked.

2. Complete the consolidated worksheet.

3. Prepare the consolidated balance sheet in good form.

Prepare the journal entries for a 100% Asset Acquisition (using Cash)

Account  DR CR
Cash  $      35,000  
AR  $      10,000  
Inventory  $      65,000  
Land  $      40,000  
PP&E  $   400,000  
Patent  $               -    
Goodwill  $      50,000  
     AP    $   100,000
     Cash    $   500,000

Which accounting method is most appropriate for representing an investment of this type?Prepare the journal entries for a 100% Asset Acquisition (using Big Company Cash)

Prepare the journal entries for a 100% Acquisition by issuing 10,000 shares of Big Company Stock

Account  DR CR
Investment in Little Company $500,000  
     Cash   $500,000

Prepare Elimination Entries for Stock Acquisition

Reference no: EM13705741

Questions Cloud

Calculate the ph of a buffer : Question- Calculate the pH of a buffer made by dissolving 1 mol formic acid (hcooh) and 1.0 mol Sodium formate (HCOONa) in 1.0 L of solution (pHa = 3.74)
How long does the return trip take : Julie drives 90mi to Grandmother's house. On the way to Grandmother's, Julie drives half the distance at 25mph and half the distance at 65 mph. How long does the return trip take
Estimate what is the height of the arrow : You would like to shoot an orange out of a tree with your bow and arrow. What is the height of the arrow once it has travelled the 44.0 m horizontally to the tree
How many joules of heat are needed to raise : Question- The specific heat capacity of liquid water is 4.18 J/g-K. How many joules of heat are needed to raise the temperature of 5.00 g of water from 15.0°C to 36.5°C
Prepare elimination entries for stock acquisition : Prepare the journal entries for a 100% Asset Acquisition - Prepare the journal entries for a 100% Acquisition by issuing 10,000 shares of Big Company Stock.
Calculates the amount of moles of oxygen that reacts : Question- Using the following equation for the combustion of octane calculates the amount of moles of oxygen that reacts with 100.0 g of octane. The molar mass of octane is 114.33 g/mole. The molar mass of carbon dioxide is 44.0095 g/mole.
Find the acceleration of the objects : Two objects (49.0 and 15.0 kg) are connected by a mass less string that passes over a mass less, frictionless pulley. The pulley hangs from the ceiling. Find the acceleration of the objects
What is the particle position : A particle moving along the x-axis has its velocity described by the function vx=2t2 m/s, where t is in s. Its initial position is x0 = 1.7m at t0 = 0 s. what is the particle's position
How far up the hill will it coast : A car traveling at 25.0m/s runs out of gas while traveling up a 22.0 degree slope. How far up the hill will it coast before starting to roll back down

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Financial statement analysis general description

Financial Statement Analysis General Description

  Project the answers need to show work on a excel work sheet

the answers need to show work on a excel work sheet. the summary can be shorter than 250 words as long as good points

  Determine the dollar sales needed to generate an after-tax

determine the dollar sales needed to generate an after-tax income of 33,000.

  Develop a set of four to five criteria

then lists all the product offerings from that vendor. Hopefully, the consultants have a lot of experience with business web sites and they can help us with many of these issues. Develop a set of four to five criteria for evaluating their web sit..

  On 1st april 20x7 miller oil company purchased a pumping

on 1st april 20x7 miller oil company purchased a pumping truck. the sole consideration was a 100000 note due in one

  Calculate hawaii-blues total obligation

Calculate Hawaii-Blue's total obligation to tourists at the end of January. On what financial statement and in which section would this amount appear?

  Question the december 31 2012 condensed balance sheets of

question the december 31 2012 condensed balance sheets of pym corp. and its 90 percent-owned subsidiary sy corp. are

  What is the breakeven level of sales in units per month

Prepare a monthly income statement for Larimer Industries at a sales volume of 10,000 units, using the contribution format. Note that there is no interest or income tax expense, because Larimer is simply a division of the corporation. What is the..

  What journal entry is recorded at the end

Assuming that Tiberand owns 25 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2010 to defer the unrealized gross profit?

  Prepare entries on salza company’s books to record

In general journal form, prepare the entries on Salza Company’s books to record the effect of the pushed down values implied by the purchase of its stock by Pascal assuming that values are allocated on the basis of the fair value of Salzer Company..

  What amount should be debited to the equipment account

If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $40,000 for the contributed equipment, what amount should be debited to the equipment account?

  Distinguish between financial accounting and book-keeping

Briefly distinguish between financial accounting and book-keeping and who prepares financial statements and who is responsible for the accounting information contained in the financial statements of an economic entity?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd