Saudi Electronic University Accounting Worksheet

Description

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. Question 1: X Corp.Acquired 100% of common stock of Y Corp.Paying $ 2 Million in return for 50 Thousand common stock with $ 1 par value. Y Corp. realized $100 Thousand net income and paid $30 Thousand cash dividends. (2.5 marks) Required: pass basic elimination entries in consolidation work sheet.Answer:Question 2: X Corp.Acquired 100% of common stock of Y Corp.X Corp. assumed acquisition expenses as follows (amounts in $) Legal fees 50,000 Accounting fees 30,000 Travel expenses 10,000 Legal fees (stock issue) 20,000 Accounting fees (stock) 15,000 SEC filing fees (stock) 10,000 Prior to the acquisition date, $90,000 have been paid and capitalized to a deferred charges account on the balance sheet. The remaining $45,000 has not been paid or accrued. Required: Prepare the journal entry to record the acquisition expenses. Answer:

Explanation & Answer:
500 words

Tags:
business

accounting

finance

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