Reference no: EM13498282
Problem VI Alutto Consolidated
On June 30, 2012, Alutto Corporation gained control of Poon Industries by purchasing 60 percent of Poon's outstanding $5 par value common stock for $9 per share. On that date, Poon Industries owed Alutto Corporation $15,000 it had borrowed by giving a promissory note to Alutto. Alutto Corporation owed Poon Industries $7,000 for merchandise purchased on account during June 2012. At the time of purchase, the book value of Poon's assets and liabilities approximated fair value.
The condensed balance sheet for Alutto Corporation as of June 30, 2012 (after the investment in Poon Industries was recorded) appears below. Assume that all Poon Industries' stock was originally issued at $5 per share.
Alutto Corporation
Balance Sheet as of June 30, 2012
|
Cash
|
$ 10,000
|
|
Accounts receivable (net)
|
22,000
|
|
Notes receivable
|
15,000
|
|
Inventories
|
15,000
|
|
Investment in Poon Industries
|
54,000
|
|
Equipment (net)
|
70,000
|
|
Buildings and land (net)
|
140,000
|
|
Total assets
|
$326,000
|
|
|
|
|
Accounts payable
|
$ 17,000
|
|
Common stock
|
183,000
|
|
Retained earnings
|
126,000
|
|
Total liabilities and equities
|
$326,000
|
Alutto Consolidated uses the "entity" method of accounting for subsidiaries.The condensed consolidated balance sheet for Alutto Consolidated (including its subsidiary) as of June 30, 2012 appears below:
Alutto Consolidated
Balance Sheet as of June 30, 2012
|
Cash
|
$ 19,000
|
|
Accounts receivable (net)
|
39,000
|
|
Notes receivable
|
15,000
|
|
Inventories
|
31,000
|
|
Equipment (net)
|
145,000
|
|
Buildings and land (net)
|
190,000
|
|
Goodwill
|
10,000
|
|
Total assets
|
$449,000
|
|
|
|
|
Accounts payable
|
$ 27,000
|
|
Mortgage payable
|
77,000
|
|
Noncontrolling interest
|
36,000
|
|
Common stock
|
183,000
|
|
Retained earnings
|
126,000
|
|
Total liabilities and equities
|
$449,000
|
REQUIRED:
Prepare Poon Industries' balance sheet as of June 30, 2012 on the answer sheet presented on the next page. If an account should not appear on Poon's balance sheet, put XXX in the blank for the account on the answer sheet.
Hint 1: How many shares of Poon Industries did Alutto purchase on June 30, 2012?
Hint 2: Using your answer to Hint 1, how many shares of Poon Industries have been issued?
Hint 3: Using your answer to Hint 2, what is the balance in Poon's Common Stock account on June 30, 2012?
|
Explain the empirical and molecular formula of acyclovir
: What is the empirical and molecular formula of Acyclovir (MW 225).( C, 42.67%) - ( H, 4.92% )- (N, 31.10%)- (O, 21.31%)...........Weights: C=12.0; H=1.008; N=14.0; O=16.0
|
|
Evaluate the indicated quantities for a system
: Calculate the indicated quantities for a system consisting of 1 mol of N2 gas. Assume ideal gas behavior. a) The gas initially at 10 atm pressure is expaneded tenfold in volume against a constant external pressure of 1 atm, all at 298 k. Calculate ..
|
|
Pick two theoretical perspectives
: Pick two theoretical perspectives
|
|
Explain the solutions of hcl and naoh and must determine
: You are given solutions of HCl and NaOH and must determine their concentrations. You use 26.6 mL of NaOH to titrate 100. mL of HCl and 21.4 mL of NaOH to titrate 50.0 mL of 0.0796 M H2SO4. Find the unknown concentrations. NaOH
|
|
How many shares of poon industries did alutto purchase
: Prepare Poon Industries' balance sheet as of June 30, 2012 on the answer sheet presented on the next page. If an account should not appear on Poon's balance sheet, put XXX in the blank for the account on the answer sheet.
|
|
Calculate by how much is the column compressed
: A 4.1-m-tall, 30-cm-diameter concrete column supports a 2.0×10^5kg load. By how much is the column compressed
|
|
By what percent does the length of the legs decrease
: A three-legged wooden bar stool made out of solid Douglas fir has legs that are 2.5cm in diameter.When a 65 man sits on the stool, by what percent does the length of the legs decrease
|
|
Evaluate the kilocalories that each slice of cake contains
: If one slice of chocolate cake contains 35g of carbohydrate, 15g of fat and 5g of protein, calculate the kilocalories that each slice of cake contains.
|
|
Compute the magnitude of the impulse delivered to the floor
: A 0.2kg steel ball is dropped straight down onto a hard horizontal floor and bounces straight up. Determine the magnitude of the impulse delivered to the floor by the steel vessel
|