"Worksheet, blocks, control with first block, merchandise sales."

Anonymous
timer Asked: Jul 1st, 2018
account_balance_wallet $30

Question description

Finish the excel template given the two items given. Answer only question 7-2. This is a very simple assignment. Need it by 12am eastern time.

Exercise 7-2 Determination and Distribution of Excess Schedule Company Value Parent Price NCI Worksheet Distribution Amortization /year Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Retained Earnings Total Equity Interest Acquired Book Value Excess of Cost over Book Value Accounts Adjusted Total 0 Analysis of 20% Interest, January 1, 2017 Baker Corporation and Subsidiary Hardee Company Consolidated Balance Sheet December 31, 2019 Assets Total Assets Liabilities and Stockholders' Equity Total Liabilities and Stockholders' Equity
Part 1 COMBINED CORPORATE ENTITIES 422 Required AND CONSOLIDATIONS 1. Prepare an analysis for the second purchase of Sharon stock by Palmer Company on December 31, 2013. 2. Prepare the worksheet necessary to produce the consolidated financial statements of Palmer Company and its subsidiary as of December 31, 2015. Include an income distribution schedule. Problem 7-2 (LO 2) Worksheet, blocks, control with first block, merchandise sales. On January 1, 2015, James Company purchases 70% of the common stock of Craft Company for $245,000. On this date, Craft has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. On May 1, 2016, James Company purchases an additional 20% of the common stock of Craft Company for $92,000. Net income and dividends for two years for Craft Company are as follows: Net income for year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends, declared in December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 2016 $60,000 20,000 $90,000 30,000 In 2016, the net income of Craft from January 1 through April 30 is $30,000. On January 1, 2015, the only tangible asset of Craft that is undervalued is equipment, which is worth $20,000 more than book value. The equipment has a remaining life of four years, and straight-line depreciation is used. Any remaining excess is goodwill. In the last quarter of 2016, Craft sells $50,000 in goods to James, at a gross profit rate of 30%. On December 31, 2016, $10,000 of these goods are in James’s ending inventory. The trial balances for the companies on December 31, 2016, are as follows: Inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment in Craft Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Buildings and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Intangibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bonds Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Long-Term Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Stock—James. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Paid-In Capital in Excess of Par—James . . . . . . . . . . . . . . . . . . . . . . . Retained Earnings—James . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Stock—Craft. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Paid-In Capital in Excess of Par—Craft . . . . . . . . . . . . . . . . . . . . . . . . Retained Earnings—Craft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiary Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends Declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . James Company Craft Company 100,000 126,000 * 50,000 350,000 (100,000) 20,000 (120,000) 50,000 180,000 50,000 320,000 (60,000) (40,000) (100,000) (200,000) (200,000) (100,000) (214,000) (520,000) 300,000 121,000 * 50,000 0 (50,000) (100,000) (190,000) (450,000) 260,000 100,000 30,000 0 * To be calculated and inserted. Required 1. Using this information, prepare a determination and distribution of excess schedule. Prepare an analysis of the later purchase of a 20% interest. 2. James Company carries the investment in Craft Company under the simple equity method. In general journal form, record the entries that would be made to apply the equity method in 2015 and 2016. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 07/01/2018 - RS0000000000000000000001059680 (Jackie Cohen) - Advanced Accounting Chapter 7 SPECIAL ISSUES IN ACCOUNTING FOR AN INVESTMENT IN A SUBSIDIARY 423 3. Compute the balance that should appear in Investment in Craft Company and in Subsidiary Income on December 31, 2016 (the second year). Fill in these amounts on James Company’s trial balance on the worksheet for 2016. 4. Complete the worksheet for consolidated financial statements for 2016. Problem 7-3 (LO 2) Worksheet, blocks, control with first block, loans, fixed asset sales, intercompany merchandise. During 2017, Away Company acquires a controlling interest in Stallward, Inc. Trial balances of the companies at December 31, 2017, are as follows: Away Company Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment in Stallward, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . Property, Plant, and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . Deferred Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Patents and Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retained Earnings, January 1, 2017. . . . . . . . . . . . . . . . . . . . . Sales and Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiary Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administrative and Selling Expenses . . . . . . . . . . . . . . . . . . . . . Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends Declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,500 100,000 200,000 3,000 4,500 924,000 469,200 1,250,000 (500,000) 25,000 (425,000) (300,000) (1,605,000) (1,800,000) (43,200) (3,000) 1,350,000 251,000 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stallward, Inc. 78,000 100,000 125,000 500,000 (150,000) 50,000 (80,000) (75,000) (5,000) (100,000) (400,000) (750,000) 525,000 174,000 3,000 5,000 0 0 The following information is available regarding the transactions and accounts of the two companies: a. An analysis of the investment in Stallward, Inc., account follows: Description January 1, 2017 . . . . . . . . . . . . . . . . . Investment September 30, 2017 . . . . . . . . . . . . . Investment Total . . . . . . . . . . . . . . . . . . . . . . . . . December 31, 2017 . . . . . . . . . . . . . . 90% of Stallward income for 2017 December 31, 2017 . . . . . . . . . . . . . . 90% of Stallward dividends for 2017 Total . . . . . . . . . . . . . . . . . . . . . . . . . Amount Interest Acquired $325,000 105,000 70% 20% $430,000 90% 43,200 (4,500) $468,700 b. The net income of Stallward, Inc., for the nine months ended September 30, 2017, is $25,000. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 07/01/2018 - RS0000000000000000000001059680 (Jackie Cohen) - Advanced Accounting

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Wow this is really good.... didn't expect it. Sweet!!!!

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