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    Account Debit Credit

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    McKenzie W
    Marshall Company acquired Tucker Company. The fair value of Tucker's assets was $515,000. Marshall recorded a gain of $115,000 on the acquisition. Goodwill of $60,000 was recorded, which was allocated to inventory ($5,000), buildings ($30,000), and land ($20,000) through consolidation entries. The consolidated financial statements combined the accounts of Marshall and Tucker, after eliminating the investment in Tucker ($515,000).

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    Account Debit Credit

    Uploaded by

    McKenzie W
    22 views4 pages
    Marshall Company acquired Tucker Company. The fair value of Tucker's assets was $515,000. Marshall recorded a gain of $115,000 on the acquisition. Goodwill of $60,000 was recorded, which was allocated to inventory ($5,000), buildings ($30,000), and land ($20,000) through consolidation entries. The consolidated financial statements combined the accounts of Marshall and Tucker, after eliminating the investment in Tucker ($515,000).

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    accounting

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    2-29

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    Marshall Company acquired Tucker Company. The fair value of Tucker's assets was $515,000. Marshall recorded a gain of $115,000 on the acquisition. Goodwill of $60,000 was recorded, which was allocated to inventory ($5,000), buildings ($30,000), and land ($20,000) through consolidation entries. The consolidated financial statements combined the accounts of Marshall and Tucker, after eliminating the investment in Tucker ($515,000).

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    22 views4 pages

    Account Debit Credit

    Uploaded by

    McKenzie W
    Marshall Company acquired Tucker Company. The fair value of Tucker's assets was $515,000. Marshall recorded a gain of $115,000 on the acquisition. Goodwill of $60,000 was recorded, which was allocated to inventory ($5,000), buildings ($30,000), and land ($20,000) through consolidation entries. The consolidated financial statements combined the accounts of Marshall and Tucker, after eliminating the investment in Tucker ($515,000).

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Fair Value Assets $ 515,000 20000+90000+140000+180000+220000+50000-40000-200000+5000+30000+2000

    Less: FV Consideration $ 400,000 200000+(20000*10)


    = Gain on Purchase $ 115,000

    Account Debit Credit


    Investment in Tucker $ 515,000
    LT Liabilities $ 200,000
    CS ($1 par) $ 20,000
    APIC $ 180,000 200000-20000
    Gain on investment $ 115,000

    Account Debit Credit


    Service Expense $ 30,000
    Cash $ 30,000
    APIC $ 12,000
    Cash $ 12,000

    FV Consideration $ 400,000
    Less: BV $ (460,000)
    = Excess BV $ (60,000)
    ALLOCATIONS
    Inventory $ 5,000
    Buildings $ 30,000
    Land $ 20,000 $ 55,000
    40000-200000+5000+30000+20000
    Marshall Company Tucker Company Consolidation Entries
    Debit
    Cash $ 18,000 $ 20,000
    Receivables $ 270,000 $ 90,000
    Inventory $ 360,000 $ 140,000 $ 5,000
    Land $ 200,000 $ 180,000 $ 20,000
    Buildings $ 420,000 $ 220,000 $ 30,000
    Equipment $ 160,000 $ 50,000
    Investment in Tucker $ 515,000 $ -

    Total Assets $ 1,943,000 $ 700,000

    Accounts Payable $ (150,000) $ (40,000)


    LT Liabilities $ (630,000) $ (200,000)
    CS $ (130,000) $ (120,000) $ (120,000)
    APIC $ (528,000) $ -
    RE $ (505,000) $ (340,000) $ (340,000)

    Total L+SE $ (1,943,000) $ (700,000) $ (515,000)

    18000=60000-30000-12000
    460000=515000-5000-30000-20000
    55000=5000+20000+30000
    630000=430000+200000 LT Liabilities issued
    130000=110000+(20000 stocks issued*1 par)
    528000=360000+((20000 stocks * 10 fv)-(20000*1 par)) - 12000
    505000=1943000-150000-630000-130000-528000
    340000=700000-40000-200000-120000
    Consolidation Entries Consolidation Totals
    Credit
    $ 38,000
    $ 360,000
    $ 505,000
    $ 400,000
    $ 670,000
    $ 210,000
    $ 460,000
    $ 55,000
    $ 2,183,000

    $ (190,000)
    $ (830,000)
    $ (130,000)
    $ (528,000)
    $ (505,000)

    $ 515,000 $ (2,183,000)

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