Advanced Accounting ProjectDue February 15 – Submit through blackboardPower Corporation acquired 80% of Snyder Company’s 1,250 shares of outstanding $100 par common stock on July 1, 2013 for $158,600. The excess of the current fair value of Snyder’s identifiable net assets over the carrying amounts on July 1, 2013, was attributable as follows

Advanced Accounting Project

Due February 15 – Submit through blackboard


Power Corporation acquired 80% of Snyder Company’s 1,250 shares of outstanding $100 par common stock on July 1, 2013 for $158,600. The excess of the current fair value of Snyder’s identifiable net assets over the carrying amounts on July 1, 2013, was attributable as follows:


To inventories (fifo) $3,000

To equipment

(five year remaining life) 4,000


In addition, on July 1, 2013, Power acquired in the open market for $37,000, $39,000 of Snyder Company’s 6% bonds payable at a yield of 7%. Interest is payable by Snyder each June 30 and

December 31.


Separate financial statements for Power Corporation and Snyder Company for the periods ended December 31, 2013, were as follows:


Power Snyder

(year ended (six months

12/31/2013) ended 12/31/2013)


Net Sales $961,905 $505,000

Interest Revenue 1,295

Income of Subsidiary 16,000 _______

$979,200 $505,000


Cost of Goods Sold $770,000 $384,000

Operating Expenses 124,140 98,450

Interest Expense 2,550

Loss on Sale of Equipment 2,000 _______

$896,140 $485,000

Net Income $83,060 $20,000


Retained Earnings, Beginning of Period $220,000 $50,000

Add: Net Income 83,060 20,000

Subtotal $303,060 $70,000

Less: Dividends Declared 36,000 9,000

Retained Earnings, End of Period $267,060 $61,000




Intercompany Accounts Receivable $100

Inventory (fifo) 300,000 $75,000

Investment in Snyder Stock 167,400

Investment in Snyder Bonds 37,125

Plant Assets 794,000 280,600

Accumulated Depreciation on Plant Assets (260,000) (30,000)

Other Assets 613,775 73,400

Total Assets $1,652,400 $399,000


Liabilities and Equity

Intercompany Accounts Payable $100

Bonds Payable $600,000 85,000

Other Liabilities 376,340 115,900

Common Stock, $100 par 360,000 125,000

Excess Paid In Capital 49,000 12,000

Retained Earnings 267,060 61,000

Total Liabilities and Equity $1,652,400 $399,000


Additional Information:

  1. During 2013 Power sold to Snyder inventory for $50,000 that had cost Power $40,000. Snyder held $18,000 of this purchase in inventory at the end of the year.
  2. During 2013 Snyder sold to Power inventory for $100,000 that had cost Snyder $85,000. Power held $25,000 of this purchase in inventory at the end of the year.
  3. On October 1, 2013, Power had sold to Snyder for $10,000 equipment having a carrying amount of $12,000 on that date. Snyder established a five-year remaining economic life, no residual value, and the straight-line method of depreciation for the equipment. Snyder includes depreciation expense in operating expenses.
  4. Goodwill was unimpaired as of December 31, 2013.



  1. Prepare the journal entries for Power to acquire the ownership in Snyder and prepare the entries made by Power under the simple equity method. Prove that the ending amounts for the investment account and the income of subsidiary account are correct as shown in the financial statements.
  2. Prepare a working paper for a consolidated income statement, statement of retained earnings, for the year ending December 31, 2013 and a consolidated balance sheet as of December 31, 2013. You will need to convert the financial statements given into trial balances for the worksheet – meaning that the beginning retained earnings should be shown on the trial balance together with all asset, liability, equity, revenue, expense, and dividend accounts – as though the books had not been closed.
  3. Prepare the consolidated income statement for the year ending December 31, 2013 and the consolidated balance sheet as of December 31, 2013.
Calculate your paper price
Pages (550 words)
Approximate price: -

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.


Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


Prompt Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

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

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

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

Acemyhomework Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

Acemyhomework Acemyhomework


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Acemyhomework Acemyhomework


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Acemyhomework Acemyhomework


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Acemyhomework Acemyhomework


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.