The writer is very fast, professional and responded to the review request fast also. Thank you.
“Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. Thefollowing information pertains to Wheal Company on the date of acquisition:Book Value Fair ValueCash………………………………………………… $ 40,000 $ 40,000Accounts receivable……………………………. 60,000 55,000Inventory…………………………………………… 50,000 75,000Property, plant, and equipment (net)…….. 100,000 200,000Secret formula (patent) ………………………. — 30,000Total assets ………………………………………. $250,000 $400,000Accounts payable ………………………………. $ 30,000 $ 30,000Accrued employee pensions…………………. 20,000 22,000Long-term debt………………………………….. 40,000 38,000Capital stock …………………………………….. 100,000 —Other contributed capital ……………………. 25,000 —Retained earnings ……………………………… 35,000 —Total liabilities and equity …………………… $250,000 $ 90,000Axel Corporation issues $110,000 par value ($350,000 market value on December 31, Year 4) ofits own stock to the shareholders of Wheal Company to consummate the transaction, and WhealCompany becomes a wholly owned, consolidated subsidiary of Axel Corporation.Required:a. Prepare journal entries for Axel Corp. to record the acquisition of Wheal Company stock assuming (1) poolingaccounting and (2) purchase accounting.b. Prepare the worksheet entries for Axel Corp. to eliminate the investment in Wheal Company stock in preparationfor a consolidated balance sheet at December 31, Year 4 assuming (1) pooling accounting and (2) purchaseaccounting.c. Calculate consolidated retained earnings at December 31, Year 4 (Axel’s retained earnings at this date are$150,000), assuming:(1) Axel Corp. uses the pooling method for this business combination.(2) Axel Corp. uses the purchase method for acquisition of Wheal Company.CHECK(b) Cr. Investment inWheal for $110,000 in (1),and $350,000 total in (2)” My deadline is tonight but I knwo you cant get it done tonight. So please let me know if you will be able to get this done by tomorrow night. Thanks!
“Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4.Thefollowing information pertains to Wheal Company on the date of acquisition: Book Value Fair Value…
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more