Advanced Accounting 1A Quiz 3 Name:

Seat no
Saw Corp. has 100 000 outstanding common stocks par $10. Currently Saw stock 's fair MV is
$35. On Jan. 3, 2016 Pat Corp. bought 12% of Saw outstanding shares. At the end of 2016 Saw
reported $1250 000 income and paid dividend $2.5/share. On April, 30 2017 Pat bought 16000
shares of Saw common stock at $ 30. Saw reported 2017 income of $1100 000 and paid
dividend $2/share. Another 72000 Saw's shares were bought by Pat on Jan. 3 2018 at $20/share
12 12% 35 1250000 2.5 100000
8 16% 30 1100000 2
12 72% 20

Prepare the journal entries for Pat Investment in Saw on:

Jan.3, 2016 Calculate Pat Investment in Saw and controlling
Investment in Saw $420,000 interest on : Investment C'trol interest
Cash $420,000 Dec. 31, 2016 $420,000 12%
Dec.31, 2016 April.30, 2017 $870,000 28%
Cash $30,000 Dec. 31, 2017 $1,063,333 28%
Dividend Income $30,000 Jan. 3, 2018 $2,503,333 100%
Apr. 30, 2017
Investment in Saw $480,000 On January 2018, Saw financial position is as follows:
Cash $480,000 BV MV
Dividend Income $30,000 Assets $7,200,000 $8,640,000
Investment in Saw $30,000 Liabilities $2,300,000 $2,300,000

Dec. 31, 2017 Prepare journal entries to recognized Saw Assets

Investment in Saw $249,333 and Liabilities on Pat Corp. , if On January 2018,
Income from Saw $249,333 Saw financial position is as follows:
BV MV
Cash $56,000 Cash 1000000 1000000
Investment in Saw $56,000 Account Receivable 800000 876800
Inventory 200000 306000
Jan.3 2018 Other Current Assets 1500000 1836000
Investment in Saw $1,440,000 Land 1200000 2244000
Cash $1,440,000 Buildings (net) 1800000 2040000
Equipment (net) 700000 510000
Assets $8,640,000 Account Payable 1000000 1020000
Liabilities $2,300,000 Loan Payable 1300000 1326000
Investment in Saw $2,503,333 Capital Stock par $10 4000000
Bargain purchase Gain $3,836,667 Paid in Capital 400000
Retained Earnings 500000
Pat Corp financial position on Jan. 3 2018 after the purchase of Saw 72000 stocks
Pat-BV Adjustment Consolidated BS
Assets
Cash $1,200,000
Account Receivable $400,000
Inventory $200,000
Other Current Assets $36,667
Investment in Saw $2,503,333
Land $1,800,000
Buildings (net) $2,156,000
Equipment (net) $204,000
Total Assets $8,500,000
Liabilities
Account Payable $100,000
Loan Payable $1,500,000
Owners'Equity
Capital Stock par $10 $5,000,000
Paid in Capital $1,000,000
Retained Earnings $900,000
Total Liabilities & Equity $8,500,000

Complete the worksheet for Pat Corp. and the Subsidiary Saw Corp.
Advanced Accounting 1B Quiz 3 Name:
Seat no
Saw Corp. has 100 000 outstanding common stocks par $10. Currently Saw stock 's fair MV is
$45. On Jan. 3, 2016 Pat Corp. bought 8% of Saw outstanding shares. At the end of 2016 Saw
reported $1200 000 income and paid dividend $2/share. On Aug. 3 2017 Pat bought 22000
shares of Saw common stock at $ 35. Saw reported 2017 income of $800 000 and paid
dividend $2/share. Another 70000 Saw's shares were bought by Pat on Jan. 3 2018 at $20/share
12 8% 45 1250000 2 100000
5 22% 35 1100000 2
12 70% 20

Prepare the journal entries for Pat Investment in Saw on:

Jan.3, 2016 Calculate Pat Investment in Saw and controlling
Investment in Saw 360000 interest on : Investment C'trol interest
Cash 360000 Dec. 31, 2016 360000 8%
Dec.31, 2016 April.30, 2017 1114000 30%
Cash 16000 Dec. 31, 2017 1242833 30%
Dividend Income 16000 Jan. 3, 2018 2642833 100%
Apr. 30, 2017
Investment in Saw 770000 On January 2018, Saw financial position is as follows:
Cash 770000 BV MV
Dividend Income 16000 Assets $7,200,000 $8,640,000
Investment in Saw 16000 Liabilities $2,300,000 $2,300,000

Dec. 31, 2017 Prepare journal entries to recognized Saw Assets

Investment in Saw $188,833 and Liabilities on Pat Corp. , if On January 2018,
Income from Saw $188,833 Saw financial position is as follows:
BV MV
Cash $60,000 Cash 1000000 1000000
Investment in Saw $60,000 Account Receivable 800000 876800
Inventory 200000 306000
Jan.3 2018 Other Current Assets 1500000 1836000
Investment in Saw $1,400,000 Land 1200000 2244000
Cash $1,400,000 Buildings (net) 1800000 2040000
Equipment (net) 700000 510000
Assets $8,640,000 Account Payable 1000000 1020000
Liabilities $2,300,000 Loan Payable 1300000 1326000
Investment in Saw $2,642,833 Capital Stock par $10 4000000
Bargain purchase Gain $3,697,167 Paid in Capital 400000
Retained Earnings 500000
Pat Corp financial position on Jan. 3 2018 after the purchase of Saw 70000 stocks
Pat-BV Adjustment Consolidated BS
Assets
Cash $782,000
Account Receivable $400,000
Inventory $200,000
Other Current Assets $360,000
Investment in Saw $2,642,833
Land $1,800,000
Buildings (net) $2,200,000
Equipment (net) $204,000

Total Assets $8,588,833

Liabilities
Account Payable $100,000
Loan Payable $1,500,000
Owners'Equity
Capital Stock par $10 $5,000,000
Paid in Capital $1,000,000
Retained Earnings $988,833
Total Liabilities & Equity $8,588,833

Complete the worksheet for Pat Corp. and the Subsidiary Saw Corp.
Advanced Accounting 1C Quiz 3 Name:
Seat no
Saw Corp. has 50 000 outstanding common stocks par $10. Currently Saw stock 's fair MV is
$40. On Jan. 3, 2016 Pat Corp. bought 11% of Saw outstanding shares. At the end of 2016 Saw
reported $1000 000 income and paid dividend $2/share. On Sept.2 2017 Pat bought 7000 5500
shares of Saw common stock at $ 25. Saw reported 2017 income of $500 000 and paid
dividend $1/share. Another 37500 Saw's shares were bought by Pat on Jan. 3 2018 at $20/share
12 11% 40 1000000 2 50000
4 14% 25 500000 1
12 75% 20

Prepare the journal entries for Pat Investment in Saw on:

Jan.3, 2016 Calculate Pat Investment in Saw and controlling
Investment in Saw 220000 interest on : Investment C'trol interest
Cash 220000 Jan. 3, 2016 220000 11%
Dec.31, 2016 September. 2, 2017 384000 25%
Cash 11000 Dec. 31, 2017 449833 25%
Dividend Income 11000 Jan. 3, 2018 1199833 100%
Sep. 2, 2017
Investment in Saw 175000 On January 2018, Saw financial position is as follows:
Cash 175000 BV MV
Dividend Income 11000 Assets $7,200,000 $8,640,000
Investment in Saw 11000 Liabilities $2,300,000 $2,300,000
Fv $4,900,000 $6,340,000
Dec. 31, 2017 Prepare journal entries to recognized Saw Assets
Investment in Saw $78,333 and Liabilities on Pat Corp. , if On January 2018,
Income from Saw $78,333 Saw financial position is as follows:
BV MV
Cash $12,500 Cash 1000000 1000000
Investment in Saw $12,500 Account Receivable 800000 876800
Inventory 200000 306000
Jan.3 2018 Other Current Assets 1500000 1836000
Investment in Saw $750,000 Land 1200000 2244000
Cash $750,000 Buildings (net) 1800000 2040000
Equipment (net) 700000 510000
Assets $8,640,000 Account Payable 1000000 1020000
Liabilities $2,300,000 Loan Payable 1300000 1326000
Investment in Saw $1,199,833 Capital Stock par $10 4000000
Bargain purchase Gain $5,140,167 Paid in Capital 400000
Retained Earnings 500000
Pat Corp financial position on Jan. 3 2018 after the purchase of Saw 37500 stocks
Pat-BV Adjustment Consolidated BS
Assets
Cash $782,000
Account Receivable $400,000
Inventory $200,000
Other Current Assets $360,000
Investment in Saw $1,199,833
Land $1,800,000
Buildings (net) $2,200,000
Equipment (net) $204,000

Total Assets $7,145,833

Liabilities
Account Payable $100,000
Loan Payable $109,167
Owners'Equity
Capital Stock par $10 $5,000,000
Paid in Capital $1,000,000
Retained Earnings $1,030,666
Total Liabilities & Equity $7,239,833

Complete the worksheet for Pat Corp. and the Subsidiary Saw Corp.