50.1K

Verified Solution

Link Copied!

Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 20X2, for $424,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Round reported net income of $85,000 for 202 and paid dividends of $23,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31,202, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 20X2, for $424,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Round reported net income of $85,000 for 202 and paid dividends of $23,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 20X2, for $424,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Round reported net income of $85,000 for 202 and paid dividends of $23,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31,202, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1, 20X2, for $424,000. At that date, the book values and fair values of Round's assets and liabilities were equal. Round reported the following summarized balance sheet data: Round reported net income of $85,000 for 202 and paid dividends of $23,000. Required: a. Give the journal entries recorded by Trim Corporation during 20X2 on its books if Trim accounts for its investment in Round using the equity method. b. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Complete this question by entering your answers in the tabs below. Give the consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits

Answer & Explanation Solved by verified expert

See Answer