fbpx

Accounting Assignment | College Homework Help

On January 1, 2017 Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $312.000 Stinson’s book value on that date consisted of common stock of $100.000 and retained earnings of $184 400 Also, the acquisition date for value of the 40 percent noncontrolling interest was $208,000.College Homework Help
The subsidiary held patents with a 10-year remaining life that were undervalued within the company’s accounting records by $83 200 and an unrecorded customer ist 15 year remaining e assessed ata $58 800 value Any remaining excess acquisition date fair value was assigned to goodw. Since acquiston Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred At year end, there are no Intra-entity payables or receivables Intra-entity inventory sales between the two companies have been made as follows: cost to hellroy Year 2017 Transfer Price to stinson $166,125 150,000 Ending Balance Cat transfer price). $55,375 37.700 115.100 The individual financial statements for these two companies as of December 31, 2018, and the year then ended follow cllroy.
It is the 5 $ Cost of sold Operating expenses Equity in earnings in stinson Net Income Retained earnings, 1/1/18 et Income Dividends declared Betained earnings, 12/31/18 Cash and receivables Inventory Investment in Stinson Buildings (at) (69.400) (284,300) (69,00) Patents( ) Total asts Common stock Retained earnings, 12/31/18 Total tilities and equities 5(1,548,467) .. Show how Mcllroy determined the $377467 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream intra entity profits against its share of Stinson’s income b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 2018 Complete this question by entering your answers in the tabs below. OORLD 9 a. Show how Mcllroy determined the $377.467 Investment in Stinson account balance downstream intra-entity profits against its share of Stinson’s income. b. Prepare a consolidated worksheet to determine appropriate balances for external fi Complete this question by entering your answers in the tabs below. Required A Required B Show how McElroy determined the $377,467 Investment in Stinson account balance. Assume of downstream intra-entity profits against its share of Stinson’s income. Consideration transferred Increase in Stinson’s retained earnings 1/1/17 to 1/1/18 Excess fair value amortization 2017 ending inventory profit deferral Mcllroy’s equity in earnings of Stinson for 2018 Stinson 2015 dividends declared to Mcllroy eclared to Mcllroy Investment account balance 12/31/18 $ Regalred A Required B Accounts NCI MCILROY, INC., AND STINSON, INC.
Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Mcllroy Stinson Debit Credit (747.000) S (382,000) 490,900 233 200 200,590 79.400 (35,946) OP (91.456) (69400) Consolidated Totals S S 0 S 5 $ IS Sales Cost of goods sold Operating expenses Equity in earnings of Stinson Separate company net income Consolidated net income To noncontrolling interest To Mcllroy, Inc. Retained earnings, 1/1 Net Income Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Customer list Goodwill Total assets Liabilities Common stock Noncontrolling interest 1/1 Noncontrolling interest 12/31 Retained earnings 12/31 Total liabilities and equities (814,500) 191.456) 49,700 (856 256) 291,900 274.200 77 467 353.000 251,900 0 (284 300) 169 400)| 20.000 (333.700) 151,900 132,400 0 2 07200 90.600 25.300 3 $ $ SO 1.548.467 392 211) (300 000) 607 400 (173,700) (100 000) (856 256) (1.548.467) S (333 700) (607 400) S S 0 S 0 S Required  Get Accounting Homework Help Today

Don't use plagiarized sources. Get Your Assignment on
Accounting Assignment | College Homework Help
Just from $13/Page
Order Now
Calculate your paper price

Pages(550 words)

Approximate price:-