Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    Chapter 3 Homework

    Uploaded by

    mzvette234
    The document provides financial information for Save Company and Spruce Company in Parts A and B. For Save, it lists common stock of $320,000, other contributed capital of $175,000, and retained earnings of $205,000. For Spruce it lists common stock of $900,000, other contributed capital of $440,000, retained earnings of $150,000, and land of $165,556. It also provides a consolidated balance sheet for Perry Company and its subsidiary Soho.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    Chapter 3 Homework

    Uploaded by

    mzvette234
    1K views4 pages
    The document provides financial information for Save Company and Spruce Company in Parts A and B. For Save, it lists common stock of $320,000, other contributed capital of $175,000, and retained earnings of $205,000. For Spruce it lists common stock of $900,000, other contributed capital of $440,000, retained earnings of $150,000, and land of $165,556. It also provides a consolidated balance sheet for Perry Company and its subsidiary Soho.

    Original Description:

    acc401 advanced accounting

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides financial information for Save Company and Spruce Company in Parts A and B. For Save, it lists common stock of $320,000, other contributed capital of $175,000, and retained earnings of $205,000. For Spruce it lists common stock of $900,000, other contributed capital of $440,000, retained earnings of $150,000, and land of $165,556. It also provides a consolidated balance sheet for Perry Company and its subsidiary Soho.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views4 pages

    Chapter 3 Homework

    Uploaded by

    mzvette234
    The document provides financial information for Save Company and Spruce Company in Parts A and B. For Save, it lists common stock of $320,000, other contributed capital of $175,000, and retained earnings of $205,000. For Spruce it lists common stock of $900,000, other contributed capital of $440,000, retained earnings of $150,000, and land of $165,556. It also provides a consolidated balance sheet for Perry Company and its subsidiary Soho.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Quintina Richmond

    Chapter 3
    3-2
    Part A
    Investment in Save
    Common Stock
    Other Contributed Capital
    Cash
    Part B
    Common Stock Save
    Other Contributed Capital Save
    Retained Earnings Save
    Investment in Save

    700,000
    400,000
    280,000
    20,000

    320,000
    175,000
    205,000
    700,000

    3-5
    Common StockSpruce
    Other Contributed CapitalSpruce
    Retained EarningsSpruce
    Land

    900,000
    440,000
    150,000
    165,556

    Investment in Spruce Company


    Treasury Stock
    Non-controlling Interest

    1,400,000
    100,000
    155,556

    Land 1,400,000/.90 (900,000 + 440,000 + 150,000 - 100,000) = 165,556


    3-2
    Part A
    100,000 /10 = 10,000 shares issued
    8,000 /10,000 = 80%
    Implied Value (100%) = 120,000/80% = 150,000.
    Implied Value of Non-controlling share = 150,000 x 20% = 30,000

    Purchase price &implied value


    Less: Book value of equity acquired:
    Common Stock
    Other Contributed captial
    Retained earnings
    Totabl book Value
    Differecnce between implied an book value
    Plant Assets

    NonControlling
    Entire
    Parent share Share
    Value
    120,000
    30,000
    150,000
    80,000
    13,200
    18,800
    112,000

    20,000
    3,300
    4,700
    28,000

    100,000
    16,500
    23,500
    140,000

    8,000
    (8,000)

    2,000
    (2,000)

    10,000
    (10,000)

    Balance

    Consolidated Balance Sheet Workpaper


    PERRY COMPANY AND SUBSIDIARY SOHO
    January 1, 2011
    part B

    Cash
    Accounts Receivable
    Inventory
    Investment in Soho
    Difference between Implied
    Value and Book Value
    Plant Assets
    Accumulated
    Depreciation
    Total
    Current Liabilities
    Mortgage Note payable
    Common Stock
    Perry Company
    Soho Company
    Other Contribute Capital
    Perry Company
    Soho Company
    Retained Earnings:
    Perry Company
    Soho Company
    Noncontrolling Interest
    Total

    Perry
    Company
    39,000
    53,000
    42,000
    120,000

    Soho
    Company
    19,000
    31,000
    25,000

    Eliminations
    Debit
    Credit

    Noncontrolling Consolidated
    Interest
    Balance
    58,000
    84,000
    67,000

    120,000
    10,000
    10,000

    10,000

    160,000

    110,500

    280,500

    (52,000)
    362,000

    (19,500)
    166,000

    -71,500
    528,000

    18,500
    40,000

    26,000

    44,500
    40,000

    120,000

    120,000
    100,000

    100,000

    135,000

    135,000
    16,500

    16,500

    48,500

    48,500
    23,500

    362,000

    166,000

    23,500
    160,000

    30,000
    160,000

    3-5
    Part A
    Pat Company Cash balance, 12/31/2010
    Less: Cash used in the acquisition of Solo
    Pat Company Cash balance after acquisition

    $540,000
    236,000
    $304,000

    Consolidated Cash balance, 1/1/2011


    Less: Pat Company Cash balance after acquisition
    Difference
    Less: Cash transfer unrecorded by Solo
    Solo's cash balance, 1/1/2011

    $352,000
    304,000
    48,000
    10,000
    $38,000

    30,000

    30,000
    418,000

    Part B
    $285,000
    Part C
    Total stockholders equity
    Add: Accounts payable of Solo Company of intercompany
    payables eliminated in consolidation
    Add: Long-term liabilities of Solo Company
    Total assets of Solo Company 1/1/2011

    $285,000
    110,000
    85,000
    $480,500

    3-9
    Part A
    Problem 3-9

    Purchase price &implied value


    Less: Book value of equity acquired:
    Common Stock
    Other Contributed captial
    Retained earnings
    Less: Treasurey Stok
    Totabl book Value
    Differecnce between implied an book value
    Plant Assets
    Balance

    NonControlling
    Parent share Share
    Total Value
    5,800,000
    6,444,444
    6,444,444
    4,725,000
    356,400
    1,732,500
    (1,080,000)
    5,733,900
    66,100
    (66,100)
    0

    525,000
    5,250,000
    39,600
    396,000
    192,500
    1,925,000
    (120,000) (1,200,000)
    637,100
    6,371,000
    7,344
    (7,344)
    0

    73,444
    (73,444)
    0

    Pope Company and Subsidiary Worksheet, January 1, 2009


    part B

    Cash
    Accounts Receivable
    Notes Receivable
    Inventory
    Investment in Sun Company
    Difference between Implied
    Value and Book Value
    Plant Assets
    Accumulated Depreciation
    Total
    Current Liabilities
    Mortgage Note payable
    Common Stock
    Perry Company
    Soho Company
    Other Contribute Capital
    Perry Company
    Soho Company
    Retained Earnings:
    Perry Company
    Soho Company
    Noncontrolling Interest
    Total

    Pope
    Company
    297,000
    432,000
    90,000
    1,980,000
    5,800,000

    Sun
    Company
    165,000
    468,000

    Eliminations
    Debit
    Credit

    Noncontrolling
    Interest

    90,000
    1,447,000

    3,427,000
    5,800,000

    5,730,000
    1,575,000
    15,904,000

    3,740,000
    908,000
    6,728,000

    698,000
    2,250,000

    247,000
    110,000

    73,444
    73,444

    73,444
    9,543,444
    2,483,000
    22,632,000
    945,000
    2,270,000

    90,000

    4,500,000

    4,500,000
    5,250,000

    5,250,000

    5,198,000

    5,198,000
    396,000
    (1,200,000)

    396,000

    1,925,000

    1,925,000

    1,200,000

    3,258,000

    15,904,000

    Consolidated
    Balance
    462,000
    900,000

    3,258,000

    6,728,000

    7,807,888

    644,444
    7,807,888

    644,444

    644,444
    16,815,444

    You might also like