About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:

Algebra,Applied Sciences See all

Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all

Teaching Since:	May 2017
Last Sign in:	408 Weeks Ago
Questions Answered:	66690
Tutorials Posted:	66688

Education

MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011

Experience

Professor
Phoniex University
Oct-2001 - Nov-2016

Category > Management Posted 03 Feb 2018 My Price 9.00

Bell Corporatio

Problem 3-5 (LO 3) Cost method, worksheet, statements. Bell Corporation pur- chases all of the outstanding stock of Stockdon Corporation for $220,000 in cash on January 1, 20X7. On the purchase date, Stockdon Corporation has the following condensed balance sheet:

Assets		Liabilities and Equity
Cash . . . . . . . . . . . . . . . . . . . . .	$ 60,000	Liabilities . . . . . . . . . . . . . . . . . . . . .	$150,000
Inventory . . . . . . . . . . . . . . . . . .	40,000	Common stock ($10 par). . . . . . . . .	100,000
Land. . . . . . . . . . . . . . . . . . . . . .	120,000	Paid-in capital in excess of par . . . .	50,000
Building (net) . . . . . . . . . . . . . . .	180,000	Retained earnings . . . . . . . . . . . . . .	100,000
Total assets. . . . . . . . . . . . . . .	$400,000	Total liabilities and equity . . . . . .	$400,000

Any excess of book value over cost is attributable to the building, which is currently over- stated on Stockdon’s books. All other assets and liabilities have book values equal to fair values. The building has an estimated 10-year life with no salvage value.

The trial balances of the two companies on December 31, 20X7, appear as follows:

	Bell	Stockdon
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	180,000	143,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	60,000	30,000
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	120,000	120,000
Building (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	600,000	162,000
Investment in Stockdon Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	220,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(405,000)	(210,000)
Common Stock ($3 par) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(300,000)
Common Stock ($10 par) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		(100,000)
Paid-In Capital in Excess of Par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(180,000)	(50,000)
Retained Earnings, January 1, 20X7. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(255,000)	(100,000)
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(210,000)	(40,000)
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	120,000	35,000
Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	45,000	10,000
Dividends Declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5,000
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0	0

Required

1. Prepare a determination and distribution of excess schedule for the investment. (A value analysis is not needed.)

2. Prepare the 20X7 consolidated worksheet. Include columns for the eliminations and adjust- ments, the consolidated income statement, the controlling retained earnings, and the conso- lidated balance sheet.

3. Prepare the 20X7 consolidated statements, including the income statement, retained earn- ings statement, and balance sheet.

Answers

Maurice Tutor

(5)

Status NEW Posted 03 Feb 2018 09:02 PM My Price 9.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------

Not Rated(0)

Buy Answer

Hire Dedicated Virtual Team / Business Solution for SMEs.