PROBLEM 4-3 Consolidated Workpaper, Wholly Owned Subsidiary Perkins Company acquired 100% of Schultz...
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Accounting
PROBLEM Consolidated Workpaper, Wholly Owned Subsidiary Perkins Company acquired of Schultz Company on January for $ On December the companies prepared the following trial balances: Perkins Schultz Cash $ $ Inventory Investment in Schultz Company Land Cost of Goods Sold Other Expense Dividends Declared Total Debits $ $ Accounts Payable $ $ Capital Stock Other Contributed Capital Retained Earnings, Sales Equity in Subsidiary Income Total Credits $ $ Required: What method is being used by Perkins to account for its investment in Schultz Company? How can you tell? Prepare a workpaper for the preparation of consolidated financial statements on December Any difference between the book value of equity acquired and the value implied by the purchase price relates to goodwill.
PROBLEM
Consolidated Workpaper, Wholly Owned Subsidiary
Perkins Company acquired of Schultz Company on January for $ On December the companies prepared the following trial balances:
Perkins
Schultz
Cash $ $
Inventory
Investment in Schultz Company
Land
Cost of Goods Sold
Other Expense
Dividends Declared
Total Debits $ $
Accounts Payable $ $
Capital Stock
Other Contributed Capital
Retained Earnings,
Sales
Equity in Subsidiary Income
Total Credits $ $
Required:
What method is being used by Perkins to account for its investment in Schultz Company? How can you tell?
Prepare a workpaper for the preparation of consolidated financial statements on December Any difference between the book value of equity acquired and the value implied by the purchase price relates to goodwill.
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