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The following are preliminary financial statements for Black Co. and Blue Co. for

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The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2009.;Black Co. Blue Co.;Sales $360,000 $228,000;Expenses (240,000) (240,000);Net income $120,000 $96,000;Retained earning, jan. $480,000 $252,000;Net income (from above) 120,000 96,000;Dividends paid (36,000) 0;Retained earnings, Dec 31,2009 $564,000 $348,000;Current assets $360,000 $120,000;Land 120,000 108,000;Building (net) 480,000 336,000;Total assets $960,000 564,000;Liabilities $108,000 132,000;Common stock 192,000 72,000;additional paid in capital 96,000 12,000;Retained earninds, Dec 31,09 564,000 348,000;Total liabilities and stockholders' equity $960,000 564,000;On December 31, 2009 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination.;Required;Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2009.

 

Paper#25323 | Written in 18-Jul-2015

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