Please answer asap Matthews Co. obtained all of the common stock of Jackson Co. on January 1, 2009. Asof that date, Jackson had the following trial balance:DebitCreditAccounts payable$ 60,000Accounts receivable$ 50,000Additional paid -in capitalBuildings - net (20 -year life)Cash and short -term investments60,000140,00070,000Common stock300,000EquipmentInventoryLandnet (8-year life)240,000110,00090,000Long -term liabilities (mature 12/31/11)Retained earnings, 1/1/09Supplies180,000120,00020,000Totals$ 720,000$ 720,000During 2009, Jackson reported net income of $96,000 while paying dividends of $12,000.During 2010, Jackson reported net income of $132,000 while paying dividends of$36,000.Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 incash. As of January 1, 2009, Jackson's land had a fair value of $102,000, its buildings werevalued at $188,000, and its equipment was appraised at $216,000. Any excess ofconsideration transferred over fair value of assets and liabilities acquired is due to anunamortized patent to be amortized over 10 years.Matthews decided to use the equity method for this investment.Required:(A.) Prepare consolidation worksheet entries for December 31, 2009.(B.) Prepare consolidation worksheet entries for December 31, 2010.

Consolidated entries are made when a company purchases another company and the financial statement…

Matthews Co. obtained all of the common stock of Jackson Co. on January 1, 2009. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable Accounts receivable $ 60,000 $ 50,000 Additional paid -in capital 60,000 Buildings - net (20 -year life) Cash and short -term investments 140,000 70,000

Matthews Co. obtained all of the common stock of Jackson Co. on January 1, 2009. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable Accounts receivable $ 60,000 $ 50,000 Additional paid -in capital 60,000 Buildings - net (20 -year life) Cash and short -term investments 140,000 70,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) 240,000 Intangible assets (indefinite life) 110,000 Land 90,000 Long-term liabilities (mature 12/31/19) 180,000 Retained earnings, 1/1/17 120,000 Supplies 20,000 Totals $ 720,000 $ 720,000 During 2020, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2021, Jackson reported net income of…
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Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) Intangible assets (indefinite life) 240,000 110,000 Land 90,000 Long-term liabilities (mature 12/31/22) Retained earnings, 1/1/20 Supplies 180,000 120,000 20,000 Totals $ 720,000 $ 720,000 During 2020, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2021, Jackson reported net income of $132,000 while paying dividends of $36,000. Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 in cash. As of January 1, 2020, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000. Any excess of…
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