Express Corporation Balance Sheet February 28, 2015 Assets Liabilities and Equity $ 60,000 Current liabilities. 80,000 Bonds payable 40,000 Common stock ($10 par). 300,000 Paidin capital in excess of par $ 50,000 100,000 50,000 250,000 70,000 Accounts receivable Inventory Land.. Buildings Accumulated depreciation-buildings . (120,000) Retained earnings . Equipment . Accumulated depreciation-equipment (60,000) 220,000 Total assets. . $ 520,000 Total liabilities and equity $520,000
On March 1, 2015, Penson Enterprises purchases an 80% interest in Express Corporation for $320,000 cash. Express Corporation has the following
Penson Enterprises receives an independent appraisal on the fair values of Express Corporation’s assets and liabilities. The controller has reviewed the following figures and accepts them as reasonable:
Inventory . . . . . . . . . . . . . . . . . . . 100,000
Land. . . . . . . . . . . . . . . . . . . . . . . 50,000
Buildings . . . . . . . . . . . . . . . . . . . 200,000
Equipment . . . . . . . . . . . . . . . . . . 162,000
Current liabilities . . . . . . . . . . . . . 50,000
Bonds payable . . . . . . . . . . . . . . 95,000
1. Record the investment in Express Corporation.
2. Prepare the value analysis schedule and the determination and distribution of excess schedule.
3. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of acquisition.
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