Problems to be Solved consolidation
The Reporting Entity and the Consolidation of Less-than-Wholly-Owned Subsidiaries with No Differential
P3-33 (Page 144-145)
Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:
Required
Prepare the journal entry on Peanut’s books for the acquisition of Snoopy on January 1, 20X8.
Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.
Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.
P3-34 (Page 145-146)
Consolidated Worksheet at End of the First Year of Ownership (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:
Required
Prepare any equity method entry(ies) related to the investment in Snoopy Company during 20X8.
Prepare a consolidation worksheet for 20X8 in good form.
P3-35 (Page 146)
Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Problem 3-34 summarizes the first year of Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Required
Prepare any equity method journal entry(ies)
P3-33 (Page 144-145)
Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:
Required
Prepare the journal entry on Peanut’s books for the acquisition of Snoopy on January 1, 20X8.
Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.
Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.
P3-34 (Page 145-146)
Consolidated Worksheet at End of the First Year of Ownership (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:
Required
Prepare any equity method entry(ies) related to the investment in Snoopy Company during 20X8.
Prepare a consolidation worksheet for 20X8 in good form.
P3-35 (Page 146)
Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Problem 3-34 summarizes the first year of Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Required
Prepare any equity method journal entry(ies)