Prepare the journal entry to record williams corp

Reference no: EM13698240

Williams Corporation acquired all of Cobb Company's outstanding stock on January 1, 2014 in exchange for for 10,000 shares of Williams Corp $6 par value Common Stock that was trading at $60 a share at the date of acquisition. Cobb's accounting records showed net assets (net book value)on that date of $470,000. Equipment on the Cobb's books with a 5-year life was undervalued by $60,000. Any
excess fair value attributable to the consideration paid was considered to be goodwill with an indefinite life. Williams Corp. also paid legal and accounting consultants $50,000 to close the acquisition.
Cobb Co. reports net income in 2014 of $150,000 and paid dividends of $20,000. Williams uses the Equity Method to account for its investment

a. Prepare the journal entry to record Williams Corp the acquisition of Cobb Co. on 1/1/2014. Answer in space provided PROB 1_TAB_1
b. Prepare an Fair Value Allocation of Purchase Price Schedule for this acquition as of 1/1/2014. Answer in space provided PROB 1_TAB_1
c. Prepare an Excess Amortization Schedule for this acquition as of 1/1/2014. Answer in space provided PROB 1_TAB_1
d. Complete an analysis of Williams Corp Investment in Cobb Co. for the period 1/1/2014 to 12/31/2014. Answer in the space provided PROB 1_TAB_1
e. Prepare Consolidation Worksheet Entries for year ending December 31, 2014. Answer PROB 1_TAB_2
All entries should be labeled appropriately and should have explanations for the purpose of each entry
Note the Consolidation Entries are to be posted below the Consolidation Worksheet on PROB 1_TAB_2.
f. Prepare Consolidation Worksheet for the year ending December 31, 2014. Answer PROB 1_TAB_2
Be sure to post all Consolidation Entries from step e. above

Reference no: EM13698240

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