Matthews Co

question 27

Essay

Matthews Co.acquired all of the common stock of Jackson Co.on January 1, 2017.As of that date, Jackson had the following trial balance:
During 2017, Jackson reported net income of $96,000 while paying dividends of $12,000.During 2018, Jackson reported net income of $132,000 while paying dividends of $36,000.
Assume that Matthews Co.acquired the common stock of Jackson Co.for $588,000 in cash.As of January 1, 2017, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000.Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years.
Matthews decided to use the equity method for this investment.
Required:
(A.) Prepare consolidation worksheet entries for December 31, 2017.
(B.) Prepare consolidation worksheet entries for December 31, 2018.

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Definitions:

Personality Traits

Fundamental characteristics or qualities that form an individual's distinctive character.

Social Interest

A concept in psychology that refers to an individual's inclination towards being interested in the welfare and well-being of others in society.

Adler

Alfred Adler was an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology. He emphasized the importance of feelings of inferiority and the striving for superiority in his theories.

Healthy Personality

Characteristics and behaviors in an individual that indicate well-being and the ability to manage life's challenges effectively.