Chapter_06_XLSol

Chapter_06_XLSol - Student Name: Instructor Class:...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 06-39 DAVIS, INCORPORATED General Journal Part a. Account Debit Credit Investment in Maxwell 32,000 Additional paid-in capital 32,000 Part b. Account Debit Credit Additional paid-in capital 40,000 Investment in Maxwell 40,000
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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: Instructor Class: McGraw-Hill/Irwin 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 8,000 Correct! Cost of goods sold 8,000 (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) 292,000 Investment in Herman 235,200 Noncontrolling interest in Herman 156,800 (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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Chapter_06_XLSol - Student Name: Instructor Class:...

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