Homework help, Prepare a T-Account for the parent company

    On January 1, 2013, Starbucks acquired 100% of Dunkin. On this date:

    Starbucks acquired 100% of Dunkin’s outstanding common stock for $842,000 in cash.

    Dunkin’s Buildings had a FV in excess of BV of $72,000 and remaining Useful Life was 12 years.

    Dunkin’s Equipment had a FV in excess of BV of $10,000 and remaining Useful Life was 10 years.

    Dunkin had an unrecorded Patent with a FMV $20,000 and remaining Useful Life was 20 years.

    Dunkin’s Stockholder’s Equity total balance was $720,000 (no additional paid in capital existed)

    During 2013, Dell had the following transactions

    Declared and paid dividends of $30,000

    Had net income for the year ending 2013 of $100,000

    During 2014, Dell had the following transactions

    Declared and paid dividends of $20,000

    Had net income for the year ending 2014 of $120,000

    As of Dec. 31, 2015,

    Starbucks and Dunkin reported the following selected balances, which include all revenue and expenses for the year 2015. NOT ALL OF THE BALANCE SHEET ACCOUNTS ARE PRESENTED HERE. All balances are Normal Balances. Dividends declared in this table represent only 2015 activity

    1. Prepare a schedule of Allocation of Acquisition Date Subsidiary Fair Value, including Goodwill, if any, and include information on excess Fair Value depreciation or amortization, if any.

    2.

    Prepare all the Journal Entries Starbucks (Parent Company) made associated with the Dunkin transactions on Starbucks’s standalone ledger for 2013 and 2014, PRIOR to the consolidation. The activity from the prior page is reproduced here for your convenience

    During 2013, Dell had the following transactions

    Declared and paid dividends of $30,000

    Had net income for the year ending 2013 of $100,000

    During 2014, Dell had the following transactions

    Declared and paid dividends of $20,000

    Had net income for the year ending 2014 of $120,000

    3.

    Prepare all of the required Consolidation Journal Entries as of December 31, 2015. Indicate the LETTER

    4. Prepare a T-Account for the parent company (Starbuck that reflects all of the postings from thedat of acquisition through the posting of the Consolidation entries. HINT: The ending balance must be zero after all of your postings

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