PROBLEM 2 Spic N Corporation acquired 60 percent of Spann on January 1, 208 at fair value. At tha d

 
   

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PROBLEM 2 Spic N Corporation acquired 60 percent of Spann on January 1, 208 at fair value. At tha d Buildings and Equipment was $75,000 on the acquisition datc. The trial balance at December the fair value of the noncontroling interest was S88,000. Accumulated depreciation on 31,20×7 for Spic 'N-Spann are as follows: SpicN- Spann Combination Trial Balance December 31, 208 Spic'N $27,000 Spann $8,000 Cash 65,000 Accounts Receivable Ieveatory Building and Equipment Investment in Spann Cost of Goods Sold Depreciation Expense 22,000 40,000 30,000 500,000 275,000 e000 138000 150,000 110,000 30,000 8,000 -?2sd 10,000 Interest Expense Dividends Declared Accumulated Depreciation 3,000 24,000 15,000 $140,000 63,000 000 100,000 $85,000 Accounts Payable 20,000 Bonds Payable Common Stock Retained Earnings 50,000 200,000 110,000 242,000 60,000 Sales 220,000 148,000 Income of Subsidiary 15,000 TOTALS $980,000 $980,000 $473,000 $473,000 2S,a Sidas Requirod 1) Provide the journal entrics rocorded by Spic'N during 20X8 on its books if it accounts for is investment in Spurn using the equity method. Write entries on page 13. 2) Give the censolidating cntries needed at December 31, 20X8, to prepare consolidated finuncial statements. Write cntries on page 13. 3) Complete the 3-part consolidation worksheet. Page 12 of