Prepare Jean Inc consolidated balance sheet

Assignment Help Financial Accounting
Reference no: EM133099242

Question - Jean and John Inc had the following balance sheets on August 31, 2019:

 

Jean Inc.

John Inc.

John Inc.

 

(carrying value)

(carrying value)

(fair value)

Cash

$1,200,000

$300,000

$300,000

Accounts Receivable

$ 400,000

$ 64,000

$ 64,000

Inventory

$ 240,000

$ 80,000

$ 60,000

Plant and Equipment (net)

$ 860,000

$256,000

$300,000

Trademark


$ 20,000

$ 36,000

Total Assets

$2,700,000

$720,000


Accounts Payable

$1,500,000

$300,000

$300,000

Bonds Payable

$ 600,000

$240,000

$210,000

Common Shares

$ 500,000

$ 60,000


Retained Earnings

$ 100,000

$120,000


Total Liabilities and Equity

$2,700,000

$720,000


On August 31, 2019, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for cash consideration of $400,000.

Assuming the above balance sheets were prepared immediately before the acquisition, prepare Jean Inc's consolidated balance sheet on the date of acquisition using the Fair Value Enterprise Method.

Reference no: EM133099242

Questions Cloud

Demonstrate awareness of the enzymatic transformations : Demonstrate awareness of the enzymatic transformations of biosynthesis and Describe modern methods for engineering metabolic pathways
Determine the total ordering and carrying costs of Material : The ordering cost is P500 while the cost to carry the inventory is 20% of the material costs. Determine the total ordering and carrying costs of Material 123
Prepare the journal entry to record Sonic acquisition : Sonic's Book Values approximated their Fair Values on that date. Prepare the journal entry to record Sonic's acquisition of Jackson's Shares
Understand the dynamic nature of many metal complexes : Understand the dynamic nature of many metal complexes, and relate this to observed reactivity patterns
Prepare Jean Inc consolidated balance sheet : Assuming the above balance sheets were prepared immediately before the acquisition, prepare Jean Inc's consolidated balance sheet on the date of acquisition
Underpin the design of imaging agents : Understand how spectroscopic techniques can be used to underpin the design of imaging agents - pros and cons of different classes of metal complex species
Strategies of stereoselective alkene functionalization : Recognize where organocatalysis can be applied in synthesis and which strategies in this area are available - significant benefit to a desired reaction outcome
Prepare a balance sheet and statement of revenues : Based on your entries, prepare a balance sheet and statement of revenues, expenditures, and changes in fund balance for the general fund
What is the firm dividend : The price of its new preferred stock is $61 and its flotation cost is $2.00. The cost of new preferred stock is 15%. What is the firm's dividend

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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