Homework answers / question archive /   Below are the balance sheets and income statements for Vadar and Skywalker for 2020                             note: the equipment has a 10 year life straight line with no salvage                               note: Vadar uses LIFO and purchases equaled sales so the ending inventory is the beginning inventory                           note: Vadar did not sell any land during 2020                               note: the only common stock transaction Skywalker had in 2020 was the purchase of Vadar                           note: DON’T FORGET ABOUT DIVIDENDS!                                 note: DON'T FORGET ABOUT THE VALUES YOU COMPUTED FOR LAND, EQUIPMENT, INVENTORY, AND NCI FROM THE PREVIOUS PROBLEM                       MAKE SURE YOU LET ME KNOW WHAT METHOD: INITIAL VALUE (COST), PARTIAL EQUITY OR FULL EQUITY YOU ARE USING                                                               Skywalker   Vadar                             cash 2,000,000   150,000                             accounts receivable 1,000,000   80,000                             inventory 1,000,000   50,000                             equipment 1,000,000   100,000                             accumulated depreciation 600,000   60000                             land 1,000,000   100,000                             Investment in Vadar A                                                                     total assets B   420,000                                                                 accounts payable 1,000,000   40,000                                                                 jcommon stock $1 par c   100,000                             apic common stock d   100,000                                                                 retained earnings e   180,000                                                                   Income statement                                   Skywalker   Vadar                             sales 1,000,000   600000                             cogs 400000   200000                             depreciation exp 100000   10000                             investment income f   0                             net income g   390000                                                                 REQUIRED:                                     A) DETERMINE THE VALUES FOR A THROUGH G                               B) MAKE THE JOURNAL ENTRIES SKYWALKER MAKES DURING 2020 (AFTER ACQUISITION) DUE TO ITS INVESTMENT IN VADAR                         C) PREPARE THE NECESSARY WORKSHEET ENTRIES                               D) PREPARE THE CONSOLIDATED BALANCE SHEET                               E) PREPARE THE CONSOLIDATED INCOME STATEMENT

  Below are the balance sheets and income statements for Vadar and Skywalker for 2020                             note: the equipment has a 10 year life straight line with no salvage                               note: Vadar uses LIFO and purchases equaled sales so the ending inventory is the beginning inventory                           note: Vadar did not sell any land during 2020                               note: the only common stock transaction Skywalker had in 2020 was the purchase of Vadar                           note: DON’T FORGET ABOUT DIVIDENDS!                                 note: DON'T FORGET ABOUT THE VALUES YOU COMPUTED FOR LAND, EQUIPMENT, INVENTORY, AND NCI FROM THE PREVIOUS PROBLEM                       MAKE SURE YOU LET ME KNOW WHAT METHOD: INITIAL VALUE (COST), PARTIAL EQUITY OR FULL EQUITY YOU ARE USING                                                               Skywalker   Vadar                             cash 2,000,000   150,000                             accounts receivable 1,000,000   80,000                             inventory 1,000,000   50,000                             equipment 1,000,000   100,000                             accumulated depreciation 600,000   60000                             land 1,000,000   100,000                             Investment in Vadar A                                                                     total assets B   420,000                                                                 accounts payable 1,000,000   40,000                                                                 jcommon stock $1 par c   100,000                             apic common stock d   100,000                                                                 retained earnings e   180,000                                                                   Income statement                                   Skywalker   Vadar                             sales 1,000,000   600000                             cogs 400000   200000                             depreciation exp 100000   10000                             investment income f   0                             net income g   390000                                                                 REQUIRED:                                     A) DETERMINE THE VALUES FOR A THROUGH G                               B) MAKE THE JOURNAL ENTRIES SKYWALKER MAKES DURING 2020 (AFTER ACQUISITION) DUE TO ITS INVESTMENT IN VADAR                         C) PREPARE THE NECESSARY WORKSHEET ENTRIES                               D) PREPARE THE CONSOLIDATED BALANCE SHEET                               E) PREPARE THE CONSOLIDATED INCOME STATEMENT

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