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acc_401_wk_3_homework_chapter_4

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Exercise problems
4-2
Step 1
Prepare Work paper entries that would be made in the preparation of a consolidated statement
statements work paper on December 31, 2013.
Step 2

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4-3
Step 1
(A)
Equity method is used by P Company to account for its investment in S Company. The balance is
investment account at the beginning of year is $532,000, which is calculated as follows.
Step 2
For this purpose, the partial equity method as well as complete equity method in the same entries
because the price paid for S Company is 95% of book value of S Company.
And, no asset adjustments and no excess amortization would be considered. Equity income also under
two methods will be same.

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Exercise problems 4-2 Step 1 Prepare Work paper entries that would be made in the preparation of a consolidated statement statements work paper on December 31, 2013. Step 2 4-3 Step 1 (A) Equity method is used by P Company to account for its investment in S Company. The balance is investment account at the beginning of year is $532,000, which is calculated as follows. Step 2 For this purpose, the partial equity method as well as complete equity method in the same entries because the price paid for S Company is 95% of book value of S Company. And, no asset adjustments and no excess amortization would be considered. Equity income also under two methods will be same. PROBLEMS 4-18 Step 1 Consolidated statement of cash flows using the indirect for the year ended December 31, 2011 can be prepared as follows. Step 2 Step 3 4-19 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 ...
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