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    Consolidated Account balances for Arlington and Winston

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    Winston has the following account balances as of Feb 1:

    Inventory $600,000.00
    Land $50,000.00
    Buildings (net) (valued at $1,000,000) $900,000.00
    Common stock ($10 per value) $(800,000.00)
    Retained earnings 1/1 $(1,100,000.00)
    Revenues $(600,000.00)
    Expenses $500,000.00

    Arlington pays $1.4 million cash and issues 10,000 shares of its $30 per value common stock (valued at $80 per share) for all of Winston's outstanding stock. Stock issuance costs amount to $30,000. Prior to recording these newly issued shares, Arlington reports a Common stock account of $900,000 and Additional Paid-In Capital of $500,000. For each of the following accounts, determine what balance would be included in a Feb 1 consolidation:

    a) Goodwill
    b) Expenses
    c) Retained Earnings 1/1
    d) Buildings

    Assume that Arlingtion pays cash of $2.3 million. No stock is issued. An additional $40,000 is paid in direct combination costs. For each of the follwing accounts, determine what balance would be included in a Feb 1 consolidation:
    a) Goodwill
    b) Expenses
    c) Retained Earnings 1/1
    d) Buildings

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    https://brainmass.com/business/accounting/consolidated-account-balances-for-arlington-and-winston-282766

    Solution Summary

    The solution calculates Consolidated Account balances for Arlington and Winston

    $2.19

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