ACC 401 Advanced Accounting Fall 2019 PROJECT GUIDELINE PART I. CASE On January 1, 2018 Alphabet, Inc. acquired 100% of stocks of DoubleW, Inc. for $5,800,000. The DoubleW’s book value of capital...

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ACC 401 Advanced Accounting Fall 2019 PROJECT GUIDELINE PART I. CASE On January 1, 2018 Alphabet, Inc. acquired 100% of stocks of DoubleW, Inc. for $5,800,000. The DoubleW’s book value of capital stocks was $1,680,000, and $2,895,000 of retained earnings. Alphabet, Inc. found out that the trademark, which had 5 years remaining life was undervalued on $95,000. The Chip technology with 8 years life was undervalued on $24,000. The trial balance for the parent and subsidiary follow: T-Mobile US Clouds Revenues 18,900,000 6,809,000 Cost of goods sold 15,900,000 7,849,120 Depreciation expense 165,000 876,000 Amortization expense 900,000 15,000 Dividend income 750,000 - Net income 2,685,000 (1,931,120) Retained earnings 1/1/18 29,458,000 5,485,000 Net income 2,685,000 (1,931,120) Dividend declared 50,000 750,000 Retaining earnings 12/31/18 32,093,000 2,803,880 Current assets 25,456,000 2,265,000 Investments in DoubleW, Inc. 5,800,000 - Equipment (net) 1,970,000 1,214,000 Trademark 396,000 24,000 Chip technology - 98,000 Goodwill 81,000 215,880 Total assets 33,703,000 3,816,880 Liabilities 765,000 113,000 Common stock 635,000 50,000 Additional paid-in capital 210,000 850,000 Retained earnings 12/31/18 32,093,000 2,803,880 Total liabilities and equity 33,703,000 3,816,880 Deliverables: Using a worksheet approach, compute (in Excel) consolidated balances for Alphabet, Inc. and DoubleW, Inc.
Answered Same DayDec 14, 2021

Answer To: ACC 401 Advanced Accounting Fall 2019 PROJECT GUIDELINE PART I. CASE On January 1, 2018 Alphabet,...

Vasudha answered on Dec 15 2021
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Question
    
    PART I. CASE
    On January 1, 2018Alphabet, Inc. acquired 100% of stocks of DoubleW, In
c. for $5,800,000. The DoubleW’s book value of capital stocks was $1,680,000, and $2,895,000 of retained earnings. Alphabet, Inc. found out that the trademark, which had 5 years remaining life was undervalued on $95,000. The Chip technology with 8 years life was undervalued on $24,000.
        T-Mobile US    Clouds
    Revenues    18,900,000    6,809,000
    Cost of goods sold    15,900,000    7,849,120
    Depreciation expense    165,000    876,000
    Amortization expense    900,000    15,000
    Dividend income    750,000    -
    Net income    2,685,000    -1,931,120
    Retained earnings 1/1/18    29,458,000    5,485,000
    Net income    2,685,000    -1,931,120
    Dividend declared    50,000    750,000
    Retaining earnings 12/31/18    32,093,000    2,803,880
    Current assets    25,456,000    2,265,000
    Investments in DoubleW, Inc.    5,800,000    -
    Equipment...
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