Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completio Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7, for $216,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9, Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates Indicated are as follows: 20X7 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) $ 44,000 57,000 78,000 350,000 Total Assets Accounts Payable Bonds Payable $ 529,000 Liabilities & Equities Common Stock Retained Earnings Total Liabilities & Equities December 31 20X8 20X9 $ 64,000 105,000 155,000 205,000 $ 74,000 97,000 108,000 330,000 $ 609,000 $ 114,000 105,000 155,000 235,000 $ 94,000 127,000 168,000 310,000 $ 699,000 $ 154,000 105,000 155,000 285,000 $ 529,000 S 609 000 $ 699,000 Split paid dividends of $21,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements. Required: a. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x8. b. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20X9. c. Prepare the consolidation entries needed as of December 31, 20X9, to complete a worksheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x9. Balance in investment account $ 361,000
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completio Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7, for $216,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9, Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates Indicated are as follows: 20X7 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) $ 44,000 57,000 78,000 350,000 Total Assets Accounts Payable Bonds Payable $ 529,000 Liabilities & Equities Common Stock Retained Earnings Total Liabilities & Equities December 31 20X8 20X9 $ 64,000 105,000 155,000 205,000 $ 74,000 97,000 108,000 330,000 $ 609,000 $ 114,000 105,000 155,000 235,000 $ 94,000 127,000 168,000 310,000 $ 699,000 $ 154,000 105,000 155,000 285,000 $ 529,000 S 609 000 $ 699,000 Split paid dividends of $21,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements. Required: a. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x8. b. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20X9. c. Prepare the consolidation entries needed as of December 31, 20X9, to complete a worksheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x9. Balance in investment account $ 361,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completio
Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7, for $216,000. At that date, the fair
value of the noncontrolling interest was $144,000. On January 1, 20X9, Peel purchased an additional 20 percent of Split's common
stock for $100,000. Summarized balance sheets for Split on the dates Indicated are as follows:
20X7
Assets
Cash
Accounts Receivable
Inventory
Buildings & Equipment (net)
$ 44,000
57,000
78,000
350,000
Total Assets
Accounts Payable
Bonds Payable
$ 529,000
Liabilities & Equities
Common Stock
Retained Earnings
Total Liabilities & Equities
December 31
20X8
20X9
$ 64,000
105,000
155,000
205,000
$ 74,000
97,000
108,000
330,000
$ 609,000
$ 114,000
105,000
155,000
235,000
$ 94,000
127,000
168,000
310,000
$ 699,000
$ 154,000
105,000
155,000
285,000
$ 529,000
S 609 000
$ 699,000
Split paid dividends of $21,000 in each of the three years. Peel uses the equity method in accounting for its investment in Split and
amortizes all differentials over 10 years against the related investment income. All differentials are assigned to patents in the
consolidated financial statements.
Required:
a. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x8.
b. Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20X9.
c. Prepare the consolidation entries needed as of December 31, 20X9, to complete a worksheet.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C
Compute the balance in Peel's Investment in Split Products Company Stock account on December 31, 20x9.
Balance in investment account
$ 361,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education