Following are selected account balances from Peregrine Company and Sprano Corporation as of December 31,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Following are selected account balances from Peregrine Company and Sprano Corporation as of December 31, 2021:
On January 1, 2021, Peregrine acquired all of Spranos outstanding stock for $680,000 fair value in cash and common stock. At the date of acquisition, copyrights (with a 6-year remaining life) were undervalued by $120,000 (i.e., market value was higher than book value). Peregrine applies the equity method to maintain the Investment in Sprano account.
Prepare a consolidation worksheet that includes consolidation (elimination) entries and consolidation totals as of December 31, 2021
Sprano $ (400,000) 100,000 200,000 Revenues Cost of goods sold Depreciation expense Equity Income in Sprano Retained earnings, 1/1/21 Dividends declared Current assets Copyrights Royalty agreements Investment in Sprano Liabilities Common Stock ($20 par) Additional paid-in capital Peregrine $ (700,000) 250,000 150,000 ??? (600,000) 80,000 400,000 900,000 600,000 ??? (950,000) (600,000) (150,000) (200,000) 60,000 500,000 400,000 1,000,000 (1,380,000) (200,000) (80,000)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
