Prepare a consolidated statement of financial position for Parker Company and subsidiary on January 2, 2020. On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares ofPocket Company for $1,470,000. After the purchase, the statements of financial position of thetwo companies appeared as follows:ParkerPocketCompanyCompanyAssetsLand$280,000$595,000$105,000$175,000$525,000$280,000$1,470,000$35,000$70,000$2,555,000 $1,120,000Buildings (net)EquipmentInvestment in Pocket 's ordinary sharesAccounts Receivable$70,000$70,000Current assetsTotalsLiabilities and EquityShare capital-ParkerShare capital PocketRetained earnings-ParkerRetained earnings-PocketNotes PayableAccounts Payable$1,295,000$700,000$840,000$210,000$105,000$105,000$2,555,000 $1,120,000$210,000$210,000TotalsAn analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 asfollows:AssetsLandFair value$420,000Buildings (net)EquipmentAccounts Receivable$735,000$280,000$70,000$70,000Cash

The consolidated statement shows the financial position of a group, when the acquired shares are…

On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Company Pocket Company Assets Land Buildings (net) Equipment Investment in Pocket 's ordinary shares $175,000 $525,000 $280,000 $1,470,000 $35,000 $280,000 $595,000 $105,000 Accounts Receivable $70,000 Current assets $70,000 $70,000 Totals $2,555,000 $1,120,000 Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings Pocket Notes Payable Accounts Payable Totals $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Fair value $420,000 $735,000 Assets Land Buildings (net) Equipment $280,000 Accounts Receivable $70,000 $70,000 Cash

On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Company Pocket Company Assets Land Buildings (net) Equipment Investment in Pocket 's ordinary shares $175,000 $525,000 $280,000 $1,470,000 $35,000 $280,000 $595,000 $105,000 Accounts Receivable $70,000 Current assets $70,000 $70,000 Totals $2,555,000 $1,120,000 Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings Pocket Notes Payable Accounts Payable Totals $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Fair value $420,000 $735,000 Assets Land Buildings (net) Equipment $280,000 Accounts Receivable $70,000 $70,000 Cash

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 24E

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