User Account

All Pages

Prepare the eliminating entries required for the preparation

Assignment Help Accounting Basics
Reference no: EM132084616

On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $650,000, an amount $20,000 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings.

Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow:


Set Company		 Consolidated Balances
1/1/14 retained earnings 190,000   880,000
Net income from above 132,000   420,000
Dividends declared (50,000)  (88,000)
12/31/14 retained earnings to the balance sheet 272,000 1,212,000

Set Company's stockholders' equity is composed of common stock and retained earnings only.

Required:

Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method.

Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the equity method.

Determine the total noncontrolling interest that will be reported on the consolidated balance sheet on December 31, 2014. How does the noncontrolling interest differ between the cost method and the equity method?

Can you please explain why we use the retained earnings under the set company to complete the problem instead of the retained earnings under the consolidated balances section?

Reference no: EM132084616

Questions Cloud

According to his agreement with the spanish crown : According to his agreement with the Spanish crown, what rewards would Columbus receive if he found a water route to Asia?
Determine the payback period using the accumulated cash flow : Determine the payback period using the accumulated cash flows approach - Barker would sell it at the end of the fifth year of its useful life
Reasons for low productivity in manorial economy : What was the reasons for low productivity in manorial economy during medieval Europe?
Identify and explain the term secret of the west : Identify and explain the term "Secret of the West". Why has the West been able to dominate the world in regards to 18th-19th century
Prepare the eliminating entries required for the preparation : Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method
What is the amount of the capitalization of retained earning : What is the amount of the capitalization of retained earnings for the stock dividend - How many common shares are outstanding on each cash dividend date
Write the code for all the objects and submit hard copy : Provide the UML that shows the objects and the relationship. Write the code for all the objects and submit hard copy of the UML and the code.
How did the turks go about enacting their armenian policy : How did the Turks go about enacting their Armenian policy? Begin with the days leading up to and immediately following April 24th, 1915.
Create three variables of string data type : Create three variables of String data type, called firstName, lastName, and fullName respectively; Assign your first name to the variable firstName;

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the messimer''s final tax that should be paid

The Messimers sent her $4,000 for help with expenses and estimate that she made $4,500 more that she used for her support. Their itemized deductions are $48,350 before any reduction.

  Fixed cost are 800000 and the verable cost are 75 of unit

fixed cost are 800000 and the verable cost are 75 of unit selling price what is the break even point.minium required

  What is the tipping point

The question is - What is the tipping point? How does an owner know it is time to do something? And, what factors should be considered

  Computing taxable income for year

Assume the same facts except that loon's long-term capital gain is $100,000 (instead of $60,000. Compute Loon's taxable income for the year.

  Compute the failure to pay and failure to file penalties

Compute the failure to pay and failure to file penalties for John, who filed his 2010 income tax return on October 20, 2011

  Bumpas enterprises purchases 4562500 in goods per year

bumpas enterprises purchases 4562500 in goods per year from its sole supplier on terms of 215 net 50. if the firm

  Discuss the equipment on the date of purchase

Geddes gave the vendor a $10,800 zero-interest-bearing note for the equipment on the date of purchase

  At what average issue price were merck common shares issued

Analyzing and Computing Issue Price, Treasury Stock Cost - Using December 31, 2014 balances, at what average issue price were the Merck common shares issued

  Phases of the retirement plan

Kim is measuring her retirement plan. Assume she has $500,000 when she retires in an account that earns at an effective annual rate of 9%.

  Company production and operational costs

The company currently sells 25,000 tons of aggregate for total revenue of $5,080,000. Other data related to the company's production and operational costs follow:

  Abc construction company build a grocery store for

abc construction company build a grocery store for megagrocers. the contract provided that the contract price would be

  Property tax expense that cee & co. would record

Cee & Co.'s fiscal year begins April 1. At the beginning of its fiscal year, Cee & Co.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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