Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Question
Chapter 3, Problem 36P
a.
To determine
Determine and explain the account balances of Investment in Company J (on Company T’s individual financial records) as of December 31, 2018.
b.
To determine
Determine and explain the account balances of Equity in Subsidiary Earnings (on Company T’s individual financial records) as of December 31, 2018.
c.
To determine
Determine and explain the account balances of Consolidated Net Income (on Company T’s individual financial records) as of December 31, 2018.
d.
To determine
Determine and explain the account balances of Consolidated Equipment (net) as of December 31, 2018.
e.
To determine
Determine and explain the account balances of Consolidated Buildings (net) as of December 31, 2018.
f.
To determine
Determine and explain the account balances of Consolidated
g.
To determine
Determine and explain the account balances of Consolidated Common stock (net) as of December 31, 2018.
h.
To determine
Determine and explain the account balances of Consolidated
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Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2016, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on Jasmine’s financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition, Jasmine reported the following:
Net Income
Dividends Declared
2016
$
50,000
$
10,000
2017
60,000
40,000
2018
30,000
20,000
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow:
Tyler Company
Jasmine Company
Revenues—operating
$
(310,000
)
$
(104,000
)
Expenses
198,000
74,000
Equipment (net)
320,000
50,000
Buildings (net)
220,000
68,000
Common stock
(290,000
)
(50,000
)
Retained earnings, 12/31/18…
Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2016, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on Jasmine’s financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition, Jasmine reported the following:
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow:
Determine and explain the following account balances as of December 31, 2018:
a. Investment in Jasmine Company (on Tyler’s individual financial records).
b. Equity in Subsidiary Earnings (on Tyler’s individual financial records).
c. Consolidated Net Income.
d. Consolidated Equipment (net).
e. Consolidated Buildings (net).
f. Consolidated Goodwill (net).
g. Consolidated Common Stock.
h. Consolidated Retained…
Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2022, for $206,000 in cash. Jasmine had a book
value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on
Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition,
Jasmine reported the following:
Year
2822
2023
2024
Net Income
$ 50,000
60,000
30,000
Dividends
Declared
$ 10,000
40,000
20,000
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two
companies as of December 31, 2024, follow:
Accounts
Revenues-operating
Expenses
Equipment (net)
Buildings (net)
Common stock
Retained earnings, 12/31/24
Tyler Company
$ (310,000)
198,000
320,000
220,000
a. Investment in Jasmine Company
b. Equity in Subsidiary Earnings
c. Consolidated Net Income
d. Consolidated Equipment (net)
e. Consolidated Buildings (net)…
Chapter 3 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - When a parent company applies the initial value...Ch. 3 - Several years ago, Jenkins Company acquired a...Ch. 3 - Benns adopts the equity method for its 100 percent...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Paar Corporation bought 100 percent of Kimmel,...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - If no legal, regulatory, contractual, competitive,...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - What is Phoenixs consolidated retained earnings...Ch. 3 - On its December 31, 2018, consolidated balance...Ch. 3 - Prob. 13PCh. 3 - Herbert, Inc., acquired all of Rambis Companys...Ch. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Following are selected account balances from...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - On January 1, 2017, Pinnacle Corporation exchanged...Ch. 3 - Following are selected accounts for Mergaronite...Ch. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39APCh. 3 - Prob. 40APCh. 3 - Prob. 1DYSCh. 3 - FASB ASC AND IASB RESEARCH CASE A vice president...Ch. 3 - Prob. 4DYSCh. 3 - Prob. 5DYS
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