Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 26P
a.
To determine
Prepare worksheet entries to consolidate these two companies as of December 31, 2018.
b.
To determine
Compute the net income attributable to the non-controlling interest for 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
On January 1, 2018, Sledge had common stock of $270,000 and retained earnings of $410,000. During that year, Sledge reported sales of $280,000, cost of goods sold of $145,000, and operating expenses of $55,000.
Â
On January 1, 2016, Percy, Inc., acquired 80 percent of Sledge's outstanding voting stock. At that date, $75,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $35,000 to an undervalued building (with a 10-year remaining life).
Â
In 2017, Sledge sold inventory costing $15,000 to Percy for $30,000. Of this merchandise, Percy continued to hold $9,000 at year-end. During 2018, Sledge transferred inventory costing $15,750 to Percy for $35,000. Percy still held half of these items at year-end.
Â
On January 1, 2017, Percy sold equipment to Sledge for $19,500. This asset originally cost $31,000 but had a January 1, 2017, book value of $12,000. At the time of transfer, the equipment's remaining life was estimated to be five years.…
On January 1, 2018, Sledge had common stock of $120,000 and retained earnings of $260,000. During that year, Sledge reported sales of $130,000, cost of goods sold of $70,000, and operating expenses of $40,000.On January 1, 2016, Percy, Inc., acquired 80 percent of Sledge’s outstanding voting stock. At that date, $60,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $20,000 to an undervalued building (with a 10-year remaining life).In 2017, Sledge sold inventory costing $9,000 to Percy for $15,000. Of this merchandise, Percy continued to hold $5,000 at year-end. During 2018, Sledge transferred inventory costing $11,000 to Percy for $20,000. Percy still held half of these items at year-end.On January 1, 2017, Percy sold equipment to Sledge for $12,000. This asset originally cost $16,000 but had a January 1, 2017, book value of $9,000. At the time of transfer, the equipment’s remaining life was estimated to be five years.Percy has…
On January 1, 2024, Sledge had common stock of $130,000 and retained earnings of $270,000. During that year, Sledge reported sales of $140,000, cost of goods sold of $75,000, and operating expenses of $41,000.
On January 1, 2022, Percy, Incorporated, acquired 70 percent of Sledge's outstanding voting stock. At that date, $61,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $21,000 to an undervalued building (with a 10-year remaining life).
In 2023, Sledge sold inventory costing $11,200 to Percy for $16,000. Of this merchandise, Percy continued to hold $6,000 at year-end. During 2024, Sledge transferred inventory costing $12,600 to Percy for $21,000. Percy still held half of these items at year-end.
On January 1, 2023, Percy sold equipment to Sledge for $12,500. This asset originally cost $17,000 but had a January 1, 2023, book value of $9,200. At the time of transfer, the equipment's remaining life was estimated to be five years.…
Chapter 5 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Use the same information as in problem (5) except...Ch. 5 - Angela, Inc., holds a 90 percent interest in Corby...Ch. 5 - Prob. 8PCh. 5 - Thomson Corporation owns 70 percent of the...Ch. 5 - Prob. 10PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - What is the consolidated total for inventory at...Ch. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Akron, Inc., owns all outstanding stock of Toledo...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Following are financial statements for Moore...Ch. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 1DYSCh. 5 - Hamilton Hawks Players Association and Mr....
Knowledge Booster
Similar questions
- On January 1, 2024, Sledge had common stock of $130,000 and retained earnings of $270,000. During that year, Sledge reported sales of $140,000, cost of goods sold of $75,000, and operating expenses of $41,000. On January 1, 2022, Percy, Incorporated, acquired 70 percent of Sledge's outstanding voting stock. At that date, $61,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $21,000 to an undervalued building (with a 10-year remaining life). In 2023, Sledge sold inventory costing $11,200 to Percy for $16,000. Of this merchandise, Percy continued to hold $6,000 at year-end. During 2024, Sledge transferred Inventory costing $12,600 to Percy for $21,000. Percy still held half of these items at year-end. On January 1, 2023, Percy sold equipment to Sledge for $12,500. This asset originally cost $17,000 but had a January 1, 2023, book value of $9,200. At the time of transfer, the equipment's remaining life was estimated to be five years.…arrow_forwardOn January 1, 2021, Sledge had common stock of $280,000 and retained earnings of $420,000. During that year, Sledge reported sales of $290,000, cost of goods sold of $150,000, and operating expenses of $56,000.  On January 1, 2019, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $76,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $36,000 to an undervalued building (with a 10-year remaining life).  In 2020, Sledge sold inventory costing $21,700 to Percy for $31,000. Of this merchandise, Percy continued to hold $5,000 at year-end. During 2021, Sledge transferred inventory costing $21,600 to Percy for $36,000. Percy still held half of these items at year-end.  On January 1, 2020, Percy sold equipment to Sledge for $20,000. This asset originally cost $32,000 but had a January 1, 2020, book value of $12,200. At the time of transfer, the equipment's remaining life was estimated to be five years.…arrow_forwardOn January 1, 2021, Sledge had common stock of $180,000 and retained earnings of $320,000. During that year, Sledge reported sales of $190,000, cost of goods sold of $100,000, and operating expenses of $46,000. On January 1, 2019, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $66,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $26,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $14,700 to Percy for $21,000. Of this merchandise, Percy continued to hold $6,000 at year-end. During 2021, Sledge transferred inventory costing $13,000 to Percy for $26,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $15,000. This asset originally cost $22,000 but had a January 1, 2020, book value of $10,200. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has…arrow_forward
- On January 1, 2021, Sledge had common stock of $240,000 and retained earnings of $380,000. During that year, Sledge reported sales of $250,000, cost of goods sold of $130,000, and operating expenses of $52,000. On January 1, 2019, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $72,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $32,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $17,550 to Percy for $27,000. Of this merchandise, Percy continued to hold $6,000 at year-end. During 2021, Sledge transferred inventory costing $19,200 to Percy for $32,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $18,000. This asset originally cost $28,000 but had a January 1, 2020, book value of $11,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has…arrow_forwardOn January 1, 2021, Sledge had common stock of $340,000 and retained earnings of $480,000. During that year, Sledge reported sales of $350,000, cost of goods sold of $180,000, and operating expenses of $62,000. On January 1, 2019, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $82,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $42,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $24,050 to Percy for $37,000. Of this merchandise, Percy continued to hold $6,000 at year- end. During 2021, Sledge transferred inventory costing $23,100 to Percy for $42,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $23,000. This asset originally cost $38,000 but had a January 1, 2020, book value of $13,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy…arrow_forwardOn January 1, 2024, Sledge had common stock of $320,000 and retained earnings of $460,000. During that year, Sledge reported sales of $330,000, cost of goods sold of $170,000, and operating expenses of $60,000. On January 1, 2022, Percy, Incorporated, acquired 80 percent of Sledge's outstanding voting stock. At that date, $80,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $40,000 to an undervalued building (with a 10-year remaining life). In 2023, Sledge sold inventory costing $17,500 to Percy for $35,000. Of this merchandise, Percy continued to hold $9,000 at year- end. During 2024, Sledge transferred inventory costing $20,000 to Percy for $40,000. Percy still held half of these items at year-end. On January 1, 2023, Percy sold equipment to Sledge for $22,000. This asset originally cost $36,000 but had a January 1, 2023, book value of $13,000. At the time of transfer, the equipment's remaining life was estimated to be five years.…arrow_forward
- On January 1, 2021, Sledge had common stock of $260,000 and retained earnings of $400,000. During that year, Sledge reported sales of $270,000, cost of goods sold of $140,000, and operating expenses of $54,000.On January 1, 2019, Percy, Inc., acquired 80 percent of Sledge's outstanding voting stock. At that date, $74,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $34,000 to an undervalued building (with a 10-year remaining life).In 2020, Sledge sold inventory costing $15,950 to Percy for $29,000. Of this merchandise, Percy continued to hold $8,000 at year-end. During 2021, Sledge transferred inventory costing $17,000 to Percy for $34,000. Percy still held half of these items at year-end.On January 1, 2020, Percy sold equipment to Sledge for $19,000. This asset originally cost $30,000 but had a January 1, 2020, book value of $11,800. At the time of transfer, the equipment's remaining life was estimated to be five years.Percy has…arrow_forwardOn January 1, 2017, Bright Company acquired 80% of Animo Company's common stock for 280,000 cash. At that date, Animo reported common stock outstanding of 200,000 and retained earnings of 100,000 and the fair Animo's assets and liabilities were equal, except for other intangible assets, which has a fair value 50,000 greater than book value and an 8- year remaining life. Animo reported the following data for 2017 and 2018. Year Net Income Comprehensive Income 30,000 45,000 Dividends Paid 2017 2018 25,000 35,000 5,000 10,000 Bright reported separate net income from own operations of 100,000 and paid dividends of 30,000 for both years. Based on the preceding information, what is the amount of comprehensive attributable to the controlling interest in 2018?arrow_forwardOn January 1, 2018, Alamar Corporation acquired a 42 percent interest in Burks, Inc., for $185,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $337,000. During 2018, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $29,000 to Burks during 2018 for $41,000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment....... For this example what/how do you determine the Dividend Recievable amount?arrow_forward
- On January 1, 2017, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.50 per share both before and after the acquisition by Holland. Zeeland’s acquisition date balance sheet follows:On January 1, 2017, Holland assessed the carrying amount of Zeeland’s equipment (5-year remaining life) to be undervalued by $55,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $285,000. Zeeland’s acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Zeeland books showed 260,000 for net stockholder equity  Any remaining excess of Zeeland’s acquisition-date fair value over its book value was attributed to goodwill.The companies’ financial statements for…arrow_forwardOn January 1, 2017, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.50 per share both before and after the acquisition by Holland. Zeeland’s acquisition date balance sheet follows:On January 1, 2017, Holland assessed the carrying amount of Zeeland’s equipment (5-year remaining life) to be undervalued by $55,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $285,000. Zeeland’s acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland’s acquisition-date fair value over its book value was attributed to goodwill.The companies’ financial statements for the year ending December 31, 2018, follow:At year-end, there…arrow_forwardNascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015, Sea-Breeze had the following assets and liabilities:The companies’ financial statements for the year ending December 31, 2018, follow:Answer the following questions:a. How can the accountant determine that the parent has applied the initial value method?b. What is the annual excess amortization initially recognized in connection with this acquisition?c. If the parent had applied the equity method, what investment income would the parent have recorded in 2018?d. What amount should the parent report as retained earnings in its January 1, 2018, consolidated balance sheet?e. What is consolidated net income for 2018 and what amounts are attributable to the controlling and noncontrolling interests?f. Within consolidated statements at January 1,…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning