investment in separate CS Investment in separate PS NCI in NA separate Work-Goog

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investment in separate CS Investment in separate PS NCI in NA separate Work-Google Chrome education.com/hm.tpx The summarized balance sheet of Separate Company on January 1, 20X3, contained the following amounts: S 45,000 125,000 50,000 160,000 Total Assets $ 380,000 Total Liabilities Preferred Stock Common Stock Retained Earnings Total Assets $380,000 Total Liabilities and Equities $380,000 On January 1, 20X3, Joint Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Separate Company at underlying book value. At that date, the fair value of the noncontrolling interest in Separate's common stock was equal to 30 percent of the book value of its common stock Required: Prepare the worksheet consolidation entries needed to prepare a consolidated balance sheet immediately following Joint's purchase of shares. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 3 Answer is not complete. No Debit 125,000 50,000 160,000 Event Accounts Credit Preferred stock Common stock Retained earnings Investment in Separate CS Investment in Separate PS NCI in NA of Separate Type here to search

Explanation / Answer

Consolidation entries:

Note:- NCI is minority interest as 30% of common stock and retained earnings ($63000) , 40% of preferred stock ($50000)

No Event Accounts Dr. Cr. 1 1 Preferred stock 125000 Common stock 50000 Retained earnings 160000 To investment in separate CS [70%* (50000+160000)] 147000 To investment in separate PS[60%*125000] 75000 To NCI in NA of separate [30%*(50000+160000) + 40%*125000] 113000

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