Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2021, consolidated company purchased

On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for...

70.2K

Verified Solution

Question

Accounting

On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy had common stock of $100,000 and retained earnings of $420,000. Equipment and land were each undervalued by $50,000 on Avergys books. There was a $40,000 overvaluation of Bonds Payable, as well a $60,000 undervaluation of inventory. The consolidation entries necessary for a date of acquisition balance sheet include all of the following except: Select one: A. Land debit, $50,000 B. Inventory debit, $60,000 C. Equipment debit, $50,000 D. Bonds Payable credit, $40,000

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!
Become a Member

Other questions asked by students

Q

Every few years, the National Assessment of Educational Progress asks a national sample of eighth-graders to...

Statistics
Q

The gas phase decomposition of hydrogen iodide to hydrogen gas and iodine gas occurs with a rate...

Chemistry
Q

1. The nose and the tongue contain chemoreceptors. What is the required condition of the stimulus...

Medical Sciences
Q

Completely and thoroughly explain how an analysis of Process Variation was used by any company that makes...

Mechanical Engineering
Q

5 A tube closed at one end has a vibrating diaphragm at the other end...

Physics
Q

r 6 puy on suomun uavis air asn x 4 and g z x 3...

Basic Math
Q

Given lim f x 56 and lim g x 4 evaluate lim 3 f x...

Calculus
Q

Suppose that the weight (in pounds) of an airplane is a linear function of the...

Calculus
Q

I, an individual, contributed three properties to X Corporation ("X") in a transaction that qualifies...

Accounting
Q

What are 2 document type classification options inside the shared Documents ab in QBO Advanced?

Accounting
Q

2.3 REQUIRED Consider the information given below and calculate the remuneration of Donald for the...

Accounting
Q

find an abtuse angle that has the same sine as the given acute ...

Accounting