On January 1, 2022, Aronsen Company acquired 90 percent of Sledel Company's outstanding shares. Sledel had a net book value on that date of $450,000: common stock ($12 par value) of $240,000 and retained earnings of $210,000. Aronsen paid $691,200 for this Investment. The acquisition-date fair value of the 10 percent noncontrolling Interest was $76,800. The excess fair value over book value associated with the acquisition was used to increase land by $222,000 and to recognize copyrights (12-year remaining life) at $96,000. Subsequent to the acquisition, Aronsen applied the Initial value method to its Investment account. In the 2022-2023 period, the subsidiary's retained earnings Increased by $230,000. During 2024, Siedel earned Income of $94,000 while declaring $34,000 in dividends. Also, at the beginning of 2024, Siedel Issued 4,000 new shares of common stock for $52 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry. Required: Prepare the appropriate 2024 consolidation entries for these two companies. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries 2 3 5 6 Prepare Entry C1 to record the adjustment for the subsidiary stock transaction. Note: Enter debits before credits. Transaction Accounts Entry C1 Investment in Siedel Additional paid-in capital (Aronsen) Debit Credit 3,450 3,450 Record entry Clear entry view consolidation entries
On January 1, 2022, Aronsen Company acquired 90 percent of Sledel Company's outstanding shares. Sledel had a net book value on that date of $450,000: common stock ($12 par value) of $240,000 and retained earnings of $210,000. Aronsen paid $691,200 for this Investment. The acquisition-date fair value of the 10 percent noncontrolling Interest was $76,800. The excess fair value over book value associated with the acquisition was used to increase land by $222,000 and to recognize copyrights (12-year remaining life) at $96,000. Subsequent to the acquisition, Aronsen applied the Initial value method to its Investment account. In the 2022-2023 period, the subsidiary's retained earnings Increased by $230,000. During 2024, Siedel earned Income of $94,000 while declaring $34,000 in dividends. Also, at the beginning of 2024, Siedel Issued 4,000 new shares of common stock for $52 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry. Required: Prepare the appropriate 2024 consolidation entries for these two companies. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries 2 3 5 6 Prepare Entry C1 to record the adjustment for the subsidiary stock transaction. Note: Enter debits before credits. Transaction Accounts Entry C1 Investment in Siedel Additional paid-in capital (Aronsen) Debit Credit 3,450 3,450 Record entry Clear entry view consolidation entries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The nswer for this entry keeps showing as wrong. I am not sure where I am going wrong.
Transcribed Image Text:On January 1, 2022, Aronsen Company acquired 90 percent of Sledel Company's outstanding shares. Sledel had a net book value on
that date of $450,000: common stock ($12 par value) of $240,000 and retained earnings of $210,000.
Aronsen paid $691,200 for this Investment. The acquisition-date fair value of the 10 percent noncontrolling Interest was $76,800. The
excess fair value over book value associated with the acquisition was used to increase land by $222,000 and to recognize copyrights
(12-year remaining life) at $96,000. Subsequent to the acquisition, Aronsen applied the Initial value method to its Investment account.
In the 2022-2023 period, the subsidiary's retained earnings Increased by $230,000. During 2024, Siedel earned Income of $94,000
while declaring $34,000 in dividends. Also, at the beginning of 2024, Siedel Issued 4,000 new shares of common stock for $52 per
share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded
no entry.
Required:
Prepare the appropriate 2024 consolidation entries for these two companies.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.
view transaction list
Consolidation
Worksheet Entries
2
3
5
6
Prepare Entry C1 to record the adjustment for the subsidiary stock transaction.
Note: Enter debits before credits.
Transaction
Accounts
Entry C1
Investment in Siedel
Additional paid-in capital (Aronsen)
Debit
Credit
3,450
3,450
Record entry
Clear entry
view consolidation entries
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