Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 4, Problem 4.11.4E
To determine
Introduction: Consolidation is the merger or acquisition of small companies into a single large one. In financial accounting, consolidation means an aggregation of financial statements of a group company/different entities and reported at a group level.
To choose: The best option
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b. Prepare all consolidation entries needed to prepare consolidated statements
for 20X5. Note: If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.a. Prepare all journal entries that Pizza recorded
during 20×5 related to its investment in Slice. Note: If no entry is required for a
transaction/event, select "No journal entry required" in the first account field. View
transaction listPizza Corporation acquired 80 percent ownership of Slice Products Company
on January 1, 20X1, for $151,000. On that date, the fair value of the noncontrolling interest
was $37,750, and Slice reported retained earnings of $46,000 and had $95,000 of common
stock outstanding Pizza has used the equity method in accounting for its investment in
Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Item
Pizza Corporation Slice Products Company Debit Credit Debit Credit Cash and Receivables
$ 86,000 $ 67,000 Inventory 277,000…
Required information
(The folowing information applies to the questions displayed below.]
Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the
merger agreement, the companies reported the following data:
Seaworthy Rope Company
Book
Value
Pumpworks
Fair
Balance
Sheet Items
Assets
Cash &
Receivables
Inventory
Land
Plant &
Equipment
Less:
Accumulated (131,000)
Depreciation
Total Assets$ 601,000
Liabilities
& Equities
Current
Liabilities
Fair
Value
Book Value
Value
$ 189,000
$109,000
$ 19,000
$ 19,000
107,000
107,000
168,000
160,000
29,000
9,000
41,000
14,000
409,000
309,000
219,000
123,000
picture
picture
(71,000)
$746,000
$205,000
$197,000
$ 77,000
$ 77,000
$ 28,000
$ 28,000
Capital
Stock
Capital in
Excess of
327,000
73,500
22,000
7,000
Par Value
Retained
Earnings
Total
Liabilities $ 601,000
& Equities
175,000
96,500
$205,000
Pumpworks has 10,900 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy
has 4,900 shares…
1. what is the basis for consolidation?2. is goodwill being remeasured to fair value at each reporting period? if false, what is the correct answer?3.a. Before consolidation, entity A's retained is how much? 3.b.he consolidated earning is how much?this is the scenario for #3a and b:entity A acquired 90% interest in ENtity B on January 1, 20x1 when entity B's net assets had a fair value of 100. On December 31, 20x2, Entity B's net assets increased to 200 after adjustments for acquisition date fair values, net of depreciation.
Chapter 4 Solutions
Advanced Financial Accounting
Ch. 4 - When is the carrying value of the investment...Ch. 4 - What is a differential? How is a differential...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - Prob. 4.6QCh. 4 - Prob. 4.7QCh. 4 - Prob. 4.8QCh. 4 - Prob. 4.9QCh. 4 - Prob. 4.10Q
Ch. 4 - Prob. 4.11QCh. 4 - What determines whether the balance assigned to...Ch. 4 - What does the termpushdown accountingmean?Ch. 4 - Under what conditions is push-down accounting...Ch. 4 - Prob. 4.15QCh. 4 - Prob. 4.2CCh. 4 - Prob. 4.3CCh. 4 - Prob. 4.4CCh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10.1ECh. 4 - Prob. 4.10.2ECh. 4 - Prob. 4.10.3ECh. 4 - Prob. 4.10.4ECh. 4 - Prob. 4.10.5ECh. 4 - Prob. 4.11.1ECh. 4 - Prob. 4.11.2ECh. 4 - Prob. 4.11.3ECh. 4 - Prob. 4.11.4ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18.1ECh. 4 - Prob. 4.18.2ECh. 4 - Prob. 4.18.3ECh. 4 - Prob. 4.18.4ECh. 4 - Prob. 4.18.5ECh. 4 - Prob. 4.18.6ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24AECh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Consolidated Balance Sheet Powder Company spent...Ch. 4 - Prob. 4.29PCh. 4 - Prob. 4.30PCh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32PCh. 4 - Prob. 4.33PCh. 4 - Prob. 4.34PCh. 4 - Prob. 4.35PCh. 4 - Prob. 4.36PCh. 4 - Prob. 4.37AP
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