Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following are preliminary financial statements

The following are preliminary financial statements for Bob Co. and Jane Co. for the year...

80.2K

Verified Solution

Question

Accounting

The following are preliminary financial statements for Bob Co. and Jane Co. for the year ending
December 31,2018 prior to Bob's acquisition of Jane.
On December 31,2018(subsequent to the preceding statements), Bob exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Jane. Bobs stock on that date has a fair value of $60 per share. Bob was willing to issue 10,000 shares of stock because Jane's land was appraised at $204,000. Bob also paid $14,000 to several attorneys and accountants who assisted in creating this combination.
Required
Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31,2018 at date of acquisition. Prepare in Excel.
Steps:
1. Prepare journal entries to record the acquisition on Bobs records.
2. Prepare a post-acquisition (after acquisition) column of accounts for Bob Co.
3. Prepare consolidation journal entries (S) and (A).
4. Prepare a worksheet to produce a consolidated balance sheet as of the acquisition date
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Distinguish among the following groups of archaea: extreme halophiles, extreme thermophiles, and methanogens. Compare and contrast viruses...

Chemistry
1.2K views

Classify each statement about effective nuclear charge, Zeff, as true or false. -Effective nuclear charge increases from...

Psychology
1.2K views

Consider shaping and chaining procedures. You need to train a teenager to take a public bus to...

Basic Math
1.2K views

According to a study done by a university? student, the probability a randomly selected individual will...

Basic Math
1.2K views

Conduct a hypothesis testing to the claim about a population proportion.A supplier of digital memory...

Calculus
1.2K views

Solve the equation Write the answer in terms of the natural logarithm 8x 1 2...

Calculus
1.2K views

Sketch the region enclosed by the given curves y cos x y sin 2x 0...

Accounting
1.2K views

Sonos is a maker of wireless internet-enabled speaker systems. It was founded in California in...

Accounting
1.2K views

Homework ACC-690 Module Three Quiz Problem Two The Fratilo Co. had three operating segments with...

Accounting
1.2K views

El 1 de enero de 2017, Pinnacle Corporation intercambi $3,527,500 en efectivo por el 100...

Finance
1.2K views

Fred Andrews (less than 65, not blind, married but his wife left town on February...

Finance
1.2K views

Select monthly data for the past five years of any 10 stocks from the S&P...