Journal Entries and Calculations, accounting homework help

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Business Finance

Description

Assignment Option #2: Fundamental Journal Entries and Calculations

Using the data in the Option 2 Spreadsheet (linked at the bottom of the page), you are to:

  1. Provide the journal entry to record the asset transfer
  2. Calculate the amount of goodwill or bargain purchase.

Requirements:

Complete all work on the spreadsheet attached to this assignment. It will be your only deliverable.

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.

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Assume that Parent Company decides to acquire Sub C Assets, Liabilities & Equities Cash AR Inventory Land Plant and Equipment Less: Accumulated Depreciation Goodwill Patent Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity Sub Company Balance Sheet Book Value $40,000 $15,000 $105,000 $60,000 $400,000 -$150,000 $10,000 Fair Value $40,000 $10,000 $200,000 $100,000 $300,000 $0 $480,000 $50,000 $100,000 $60,000 $270,000 $480,000 $0 $650,000 $50,000 Assume that Parent Company decides to acquire Sub C Assets, Liabilities & Equities Cash AR Inventory Land Plant and Equipment Less: Accumulated Depreciation Goodwill Patent Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity Sub Company Balance Sheet Book Value $40,000 $15,000 $105,000 $60,000 $400,000 -$150,000 $10,000 Fair Value $40,000 $10,000 $200,000 $100,000 $300,000 $0 $480,000 $50,000 $100,000 $60,000 $270,000 $480,000 $0 $650,000 $50,000 Assume that Parent Company decides to acquire Sub C Assets, Liabilities & Equities Cash AR Inventory Land Sub Company Balance Sheet Book Value $40,000 $15,000 $105,000 $60,000 Fair Value $40,000 $10,000 $200,000 $100,000 Plant and Equipment Less: Accumulated Depreciation Goodwill Patent Total Assets AP Common Stock Additional Paid In Capital Retained Earnings Total Liabilities & Equity $400,000 -$150,000 $10,000 $300,000 $0 $480,000 $50,000 $100,000 $60,000 $270,000 $480,000 $0 $650,000 $50,000 decides to acquire Sub Company for $564,000 of debentures Prepare the consolidating journal entries for a 100% Asset Acquisition Account Amount DR decides to acquire Sub Company for $580,000 of debentures Prepare the consolidating journal entries for a 100% Asset Acquisition Account Amount DR decides to acquire Sub Company for $625,000 of debentures Prepare the consolidating journal entries for a 100% Asset Acquisition (using Cash) Account Amount DR tion CR tion CR sing Cash) CR
Purchase answer to see full attachment
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Explanation & Answer

Hi,I have completed and attached the work in an Excel file below. Kindly let me know if it is satisfactory or if you need me to work on it some more. I made use of comments as per directions.

Assume that Parent Company decides to acqui
Assets, Liabilities & Equities
Cash
AR
Inventory
Land
Plant and Equipment
Less: Accumulated Depreciation
Goodwill

Sub Company Balance Sheet
Book Value
$40,000
$15,000
$105,000
$60,000
$400,000
-$150,000
$10,000

Patent
Total Assets
AP

$0
$480,000
$50,000

Common Stock
Additional Paid In Capital
Retained Earnings
Total Liabilities & Equity

$100,000
$60,000
$270,000
$480,000

Fair Value
$40,000
$10,000
$200,000
$100,000
$300,000

$0
$650,000
$50,000

Assume tha...

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