Ch 3 activity hoyle 3rd

Ch 3 activity hoyle 3rd - Ch 3 activity 3-1. Matthews Co....

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Ch 3 activity 3-1. Matthews Co. obtained all of the common stock of Jackson Co. on January 1, 2009. As of that date, Jackson had the following trial balance: During 2009, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2010, Jackson reported net income of $132,000 while paying dividends of $36,000. Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 in cash. As of January 1, 2009, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000 and its equipment was appraised at $216,000. Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years. Matthews decided to use the equity method for this investment. Required: (A.) Prepare consolidation worksheet entries for December 31, 2009. (B.) Prepare consolidation worksheet entries for December 31, 2010.
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Jaynes Inc. obtained all of Aaron Co.'s common stock on January 1, 2009, by issuing 11,000
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This note was uploaded on 02/23/2010 for the course ACCT 20842 taught by Professor Henry during the Spring '10 term at CSU San Bernardino.

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Ch 3 activity hoyle 3rd - Ch 3 activity 3-1. Matthews Co....

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