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Acct 559 Class Project Case 2 (2014)




Consolidated Worksheet at End of First Year of Ownership;Pierce Corporation acquired 75 percent of Bryan Company?s ownership on January 1, 2013 for $ 96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Bryan?s net assets at acquisition was $100,000. The book values and fair values of Bryan?s assets and liabilities were equal, except for Bryan?s buildings and equipment, which were worth $20,000 more than book value. Buildings and equipment are depreciated on a 10-year basis.;Although goodwill is not amortized, the management of Pierce concluded at December 31, 2013 that goodwill from its purchase of Bryan shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.;Trial balance for data for Pierce and Bryan on December 31, 2013 are as follows;Pierce Corporation Bryan Company;Item Debit Credit Debit Credit;Cash $ 47,500 $ 21,000;Accounts Receivable 70,000 12,000;Inventory 90,000 25,000;Land 30,000 15,000;Buildings and Equipment 350,000 150,000;Investment in Bryan Co. Stock 96,375;Cost of Goods Sold 125,000 110,000;Wage Expense 42,000 27,000;Depreciation Expense 25,000 10,000;Interest Expense 12,000 4,000;Other Expenses 13,500 5,000;Dividends Declared 30,000 16,000;Accumulated Depreciation $ 145,000 $ 40,000;Accounts Payable 45,000 16,000;Wages Payable 17,000 9,000;Notes Payable 150,000 50,000;Common Stock 200,000 60,000;Retained Earnings 102,000 40,000;Sales 260,000 180,000;Income from Subsidiary 12,375;-------------------------------- -----------------------------;Totals $ 931,375 $ 931,375 $ 395,000 $ 395,000;======================= ====================;Requirements;a. Prepare the elimination entries in general journal form.;b. Prepare a consolidated worksheet as of December 31, 2013.


Paper#80118 | Written in 18-Jul-2015

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