Reference no: EM132472816
Point 1: Assume that a parent company acquires its subsidiary on 1/1/xx, by exchanging 41,500 shares of its $1 par value common stock, with a market value on acquisition date of $36 per share, for all of the outstanding voting shares of the subsidiary. You have been charged with preparing the consolidation of these two entities at 12/31/xx.
Point 2: On acquisition date (1/1/xx), all of the subsidiary's assets and liabilities had fair values equaling their book values except PPE assets are undervalued by $81,000 (depreciation =$5,400 per year), the subsidiary has an unrecorded patent with a fair value of $261,000 (amortization = $32,625 per year) and the parent records $162,000 of goodwill in the transaction.
Submission Requirements:
Question 1: Prepare the consolidated balance sheet at 12/31/xx by placing the appropriate entries in their respective debit/credit column cells.
Question 2: Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is a [C], [E] or [A] or [D] entry.
Question 3: Use Excel formulas to derive the Consolidated column amounts and totals.
Question 4: Using the "Home" key in Excel, go to the "Styles" area and highlight the [C], [E], [A] and [D]cell entries in different shades.
Attachment:- parent company.rar
Prepare a flexible factory overhead cost budget
: Prepare a flexible factory overhead cost budget for the Press Department for November for 10,000, 12,000, and 14,000 hours of production.
|
Describe absorption costing and variable costing
: Describe absorption costing and variable costing. Which method is more consistent with cost volume profit analysis? Please explain.
|
What is the anticipated warranty repair cost
: How can determine if line speed is positively or negatively correlated with warranty costs, defect, inspection hours? What is anticipated warranty repair cost?
|
Create and post to the ledger accounts
: Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
|
Prepare the consolidated balance sheet
: Prepare the consolidated balance sheet at 12/31/xx by placing the appropriate entries in their respective debit/credit column cells.
|
Prepare Income Statement and Statement of Retained Earnings
: Given the financial statements of Grove Company. Prepare an Income Statement, Statement of Retained Earnings and a Classified Balance Sheet for Grove Company
|
Journalize the entry to record the addition of direct labor
: Create and Journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15.
|
Journalize the entry to record the addition of factory
: Journalize the entry to record the addition of factory overhead to Work in Process for the period December 16 through December 31.
|
Prepare condensed single-step income statement
: Prepare condensed single-step income statement. Blue Spruce is a private company that prepares financial statements in accordance with ASPE.
|