Chapter06_XL - Student Name: Class: Problem 06-39 DAVIS,...

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Student Name: Class: Problem 06-39 DAVIS, INCORPORATED General Journal Part a. Account Debit Credit Part b. Account Debit Credit
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Given Data P06-39 Number of shares of Maxwell acquired by Davis 16,000 Maxwell's total stockholders' equity: Common stock ($10 par value) $200,000 Additional paid-in capital 230,000 Retained earnings 370,000 Total $800,000 Part a. Number of shares issued by Maxwell 5,000 Issue price per share $50 Shares purchased by Davis - Part b. Number of shares issued by Maxwell 4,000 Issue price per share $25 Shares purchased by Davis -
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Student Name: Class: Problem 06-42 FRED, INC. AND Herman CORPORATION - Allocation of acquisition price 1/1/09 Consideration transferred $312,000 Noncontrolling interest fair value 208,000 Acquisition date fair value $520,000 Correct! Book value acquired 300,000 Fair value in excess of book value $220,000 Annual Excess cost allocated to accounts Life Excess based on fair value: (years) Amortizations Patents 90,000 12 $7,500 Customer list $130,000 10 13,000 Total Correct! $20,500 Correct! a. Consolidation entries *TL Investment in Herman 7,000 Correct! Land 7,000 (To eliminate unrealized gain created by previous intercompany transfer) *G Retained earnings, 1/1/11 Correct! Cost of goods sold (To remove unrealized inventory gain from prior year so it can be realized in current year) S Common stock (Herman) 100,000 Correct! Retained earnings, 1/1/11 (Herman) Investment in Herman Noncontrolling interest in Herman (To eliminate Herman's stockholders' equity accounts and record beginning year balance for noncontrolling interest) A Patents 75,000 Correct! Customer list
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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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Chapter06_XL - Student Name: Class: Problem 06-39 DAVIS,...

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