Prepare in general journal form the workpaper entries

Assignment Help Financial Accounting

Reference no: EM13122535

Q. Park Company purchased 90% of the stock of Salt Company on January 1, 2009, for 465,000, an amount equal to 15,000 in excess of the book value of equity acquired. this excess payment relates to an undervaluation of Salt Company's land. On the date of purchase, Salt Company's retained earning blanace was $50,000. The remainder of the stockholders' equity consists of no-par comon stock. During 2013 Salt Company declared dividends in the amount of $10,000, and reported net income of $40,000. The retained earnings balance Salt Company on December 31, 2012 was $160,000, Park Companyuses the cost method to record it investment.
Required:

Prepare in general journal form the workpaper entries that would be made int he preparation of a consolidated statements workpaper on December 31,2013.

Reference no: EM13122535

Questions Cloud

Find the probability that the second card is a spade : If two cards are drawn without replacement from a deck, find the probability that the second card is a spade, given that the first card was a spade.

Illustrate what you learned about accounting practices : illustrate what you've learned about accounting practices and policies, how can you incorporate this type of analysis and awareness into your professional work in a way that enhances

Find the probability of three from town a and 2 from town b : At the first tri-city meeting, there were 8 people from town A, 7 people from town B, and 5 people from town C

Illustrate what is the difference between optimistic project : Illustrate what is the difference between optimistic projection and stretching the truth? Illustrate what kinds of checks and balances could you put into place to insure ethical behavior and accountability for both yourself and your employees?

Prepare in general journal form the workpaper entries : Prepare in general journal form the workpaper entries that would be made int he preparation of a consolidated statements workpaper.

What was the account balance at the end of specific year : At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $80,000 were made at the end of each year from the seventh through the tenth years. what was the account balance at the end of the tenth..

Illustrate what is the amount of character of butte gain : Butte sold a machine to a machine dealer for $50,000. Butte bought the machine for $55,000 several years ago and has claimed $12,500 of depreciation expense on the machine. Illustrate what is the amount of character of Butte's gain or loss?

Effect on the tax basis of each partner partnership : orders stationery and other office supplies in the amount of $300. Before the partnership pays for the supplies but after the partnership has taken title and possession of the supplies, is there any effect on the tax basis of each partner's partne..

Original cost of the computer to stark : Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost (present value) of the computer to Stark?

User Account

All Pages