Week 4 - Given Data P04-32 Sam Corporation outstanding...

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Given Data P04-32 Sam Corporation outstanding common stock 80% acquired by Father, Inc. Cash paid by Father, Inc. for $680,000 Sam Corporation shares Book value of Sam Corporation 600,000 Use this template to comp Sam accounts values on 1/1/09 Book Fair Step 1: Complete purchase pri Value Value Step 2: Complete Journal Entr Land $60,000 $225,000 Step 3: Input journal entries in Buildings and equipment 275,000 250,000 Step 4: Complete consolidated (10-year remaining life) Copyright (20-year life) 100,000 200,000 Notes payable (due in 8 years) 130,000 120,000 Father, Sam Inc. Corporation 12/31/2009 12/31/2009 Revenues $(1,360,000) $(540,000) Cost of goods sold 700,000 385,000 Depreciation expense 260,000 10,000 Amortization expense - 5,000 Interest expense 44,000 5,000 Equity in income of Sam (105,000) - Net income $(461,000) $(135,000) Retained earnings, 1/1/0 (1,265,000) (440,000) Net income (461,000) (135,000) Dividends paid 260,000 65,000 Retained earnings, 12/31/09 $(1,466,000) $(510,000) Current assets $965,000 $528,000 Investment in Sam 733,000 - Land 292,000 60,000 Buildings and equipment (net) 877,000 265,000 Copyright - 95,000 Total assets $2,867,000 $948,000 Accounts payable $(191,000) $(148,000) Notes payable (460,000) (130,000) Common stock (300,000) (100,000) Additional paid-in capital (450,000) (60,000) Retained earnings (1,466,000) (510,000) Total liabilities and equity $(2,867,000) $(948,000) Note: Credits are indicated by parentheses.
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This note was uploaded on 01/13/2011 for the course ACCT AC555 taught by Professor George during the Spring '10 term at DeVry Chicago.

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Week 4 - Given Data P04-32 Sam Corporation outstanding...

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