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

Entry C1: To record the adjustment for the subsidiary stock transaction:Explanation:…

Answered: 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…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

See similar textbooks

Related questions

Q: If I tried to use this method when doing other problems will all the negatives always be…

A: No, not necessarily. In standard costing problems, negative variances can be either favorable or…

Q: Not sure what i'm doing wrong.

A: Direct labor cost budget shows the total direct labor cost and number of direct labor hours needed…

Q: It says that step a is wrong. That those are not the right ROI's. Is there another way to solve that…

A: Introduction:- Return on investment indicates how well an investment performed in comparison to the…

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: my instructor advises this answer is incorrect

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Part B is incorrect please provide correct answer. I provided feedback long ago and it still hasn't…

A: An accounting theory known as revenue recognition specifies the timing and procedures for when and…

Q: I don't understand where the number 19.88798 comes from

A: In this question we are provided with the factor table. Hence we will have to use the values in the…

Q: not sure why, but that is not the correct solution to the question.

A: Present value With future value (FV), periodic interest rate (r) and period (n), the present value…

Q: The solution is showing as not correct. not sure where you got some of those number either.

A: Here discuss about the details of calculation of taxable income which can be differentiated from…

Q: Wrong Answer. There is nothing in the question that isn't in English

A: Marika Katz bought a new blazer and insured it with compulsory insurance 10/20/5.10/20/5…

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: Please assist, the answer of 230292 is not correct.

A: Income Statement - Income Statement includes income earned and expenses incurred during the…

Q: How can a poorly designed database result in unintentional loss of critical records?

Q: Which of the following is the maximum misstatement that can exist in an account before it is…

A: MisstatementThe difference between the required amounts in the presentation or disclosure and the…

Q: The period set is arbitrary. It to understand

A: Payback period is the no. of years required to recover the initial amount invested.

Q: am a little confused by the account names you have writen for the journal entries. Could you explain…

A: Journal Entry - This is basically a primary books in which business transactions are recorded, every…

Q: percentage method

A: Income Tax refers to the amount paid to the government by the businesses and individuals on the…

Q: s

A: Interim reporting : An interim statement is a financial report that covers a period of less than a…

Q: I have the exact same question but it says that general journal entries g and j are incorrect

A: Cost bifurcation of Gymnasium Building and Value of Gym Equipment: Total Cost= $56000

Q: How can the owners be disclaimers?

A: A disclaimer is a term utilized to define or restrict the range of duties and rights enforceable in…

Q: Does differential analysis require journal entries? Why or why not?

A: When choosing between multiple possible actions, differential analysis implies that we take into…

Q: What are the calculations at the end of bii) and c) as it cuts off and I am unable to see it?

A: Here, Particulars Values Face value of UK Bond (FV) £ 1,000.00 Yield to Maturity (RATE) 6%…

Q: INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) $ 27,587 17,589 1,422 $ 8,576…

A: Free cash flows are the amount of cash from operations after incurring capital expenditures. It is…

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: the answer is wrong and i still couldnt get past the question.

A: Horizontal Analysis - Under Horizontal Analysis two years ledgers are compared of the same company.…

Q: the last one is showing wrong

A: Answer 3) When a special order circumstance occurs, management must compute the necessary costs to…

Q: Is there a different format for Maufacturing account? I am not familliar with this lay out

A: Statement of Cost of Goods Manufactured is a statement prepared under managerial accounting. It…

Q: ot correct, some calculations are wrong, can you try again

A: Since the payments are made in the beginning of the period, the formula used will be an annuity due.…

Question

The nswer for this entry keeps showing as wrong. I am not sure where I am going wrong.

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

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

See solution Check out a sample Q&A here