On January 4, 2010, Pronti Company acquired all of the net assets of Scott Company for $124,000 cash. The two companies merged with Pronti Company surviving. The balance sheets for each company prior to the merger follow.Required:1. How much goodwill was involved in this merger? Show computations.2. Record the merger by Pronti Company on January 4, 2010.3.

Prepare a consolidated balance sheet immediately after the acquisition.

Don't use plagiarized sources. Get Your Custom Essay on
Just from $13/Page
Order Essay

On January 2, Leonberger Company acquired 30% of the outstanding stock of ARO Company for $300,000. For the year ended December 31, ARO Company earned income of $60,000 and paid dividends of $15,000.

Prepare the entries for Leonberger Company for the purchase of the stock, the share of ARO income, and the dividends received from ARO Company.

On January 1 Royal Company purchased a 25% equity in Connors Ltd, for £180,000. At December 31 Connors declared and paid a £60,000 cash dividend and reported net income of £200,000.


(a) Journalize the transactions.

(b) Determine the amount to be reported as an investment in Connors at December 31.

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.