Assignment 2

Problem 3-1
Common Information
Ownership Interest 80%
Number of Market Price

Cash Shares per Share
Price Paid 10,000 70
Acquired Company's Balance Sheet Before Purchase
Book Value Market Value Life

Assets
Current Assets 100,000

Investments 150,000
Land 120,000 180,000
Building (net) 350,000 450,000 20
Equipment (net) 160,000
Goodwill
Total Assets 880,000 630,000
Company
Implied Fair Parent Price NCI Value
Value Analysis Value (80%) (20%)
Price Paid 860,000 700,000 160,000
Fair Value of Net Assets
Excluding Goodwill 710,000 568,000 142,000
Goodwill 150,000 132,000 18,000
Gain on Acquisition
Determination and Distribution

of Excess Schedule
Company Parent Price NCI Value
Value (80%) (20%)
Fair Value of Subsidiary 860,000 700,000 160,000
Less Book Value of Interest
Acquired
Common Stock 100,000
Paid in Excess 200,000
Retained Earnings 250,000
Total Equity 550,000 550,000 550,000
Interest Acquired 80% 20%
Book Value 440,000 110,000
Excess of Cost over Book Value 310,000 260,000 50,000
Adjustment of identifiable
accounts:
Accounts Worksheet Annual

Adjusted Distribution Amortizations
Land ($180,000-$120,000) 60,000 debit D1
Building (450,000-350,000) 100,000 debit D2 5,000
Goodwill 150,000 debit D3
Total 310,000
Entries Simple Equity Method

Debit Credit
Investment 2015
Investment in Solvo Company 48,000

Subsidiary Income 48,000
Cash 8,000
Investment 2016

Cash 8,000
Elimination 2015
(CY1)
(CY2)
Dividends Declared - Solvo Co. 8,000
(EL)
Common Stock - Solvo Co. 80,000
Paid-in Capital in Excess
of Par - Solvo Co 160,000
Retained Earinings - Solvo Co. 200,000
(D)
Land 60,000
Building 100,000
Goodwill 150,000
Retained Earnings - Solvo Co. NCI 50,000
(A)
Depreciation Expense - Building 5,000
Accumulated Depreciation - Building 5,000
Elimination 2016
(CY1)
(CY2)
Dividends Declared - Solvo Co. 8,000
(EL)
Common Stock - Solvo Co. 80,000
of Par - Solvo Co 160,000
(D)
Land 60,000
Building 100,000
Goodwill 150,000
Retained Earnings - Solvo Co. NCI 50,000
(A)
Retained Earinings - Port Co. 4,000
Total
700,000
Market
Book Value Value Life
Liabilities
current liabilities 80,000

Bonds payable 250,000
Equity
Common stock ($10 par) 100,000

Paid-in capital in excess of par 200,000
Retained earnings 250,000
Total Liabilities and Equity 880,000 0

Sophisticated Equity
Debit Credit
Investment 2015 Investment 2015
Investment in Solvo Company 44,000 No entry.

Cash 8,000 Cash

Investment in Solvo Company 8,000 Dividend Income
Investment 2016 Investment 2016
Investment in Solvo Company 36,000 No entry.

Cash 8,000 Cash

Elimination 2015 Elimination 2015
(CY1) (CY1)
Subsidiary Income 44,000 No entry.
(CY2) (CY2)
Dividends Declared - Solvo Co. 8,000 Dividends Declared - Solvo Co.
(EL) (EL)
Common Stock - Solvo Co. 80,000 Common Stock - Solvo Co.
Paid-in Capital in Excess Paid-in Capital in Excess
of Par - Solvo Co 160,000 of Par - Solvo Co
Retained Earinings - Solvo Co. 200,000 Retained Earinings - Solvo Co.
Investment in Solvo Company 440,000 Investment in Solvo Company
(D) (D)
Land 60,000 Land
Building 100,000 Building
Goodwill 150,000 Goodwill
Retained Earnings - Solvo Co. NCI 50,000 Retained Earnings - Solvo Co. NCI
(A) (A)
Depreciation Expense - Building 5,000 Depreciation Expense - Building
Accumulated Depreciation - Building 5,000 Accumulated Depreciation - Building
Elimination 2016 Elimination 2016
(CY1) (CV)
Subsidiary Income 36,000 Investment in Solvo Company
Investment in Solvo Company 36,000 Retained Earinings - Port Co.
(CY2) (CY2)
Dividends Declared - Solvo Co. 8,000 Dividends Declared - Solvo Co.
(EL) (EL)
Common Stock - Solvo Co. 80,000 Common Stock - Solvo Co.
Paid-in Capital in Excess Paid-in Capital in Excess
of Par - Solvo Co 160,000 of Par - Solvo Co
Retained Earinings - Solvo Co. 240,000 Retained Earinings - Solvo Co.
(D) (D)
Land 60,000 Land
Building 100,000 Building
Goodwill 150,000 Goodwill
Retained Earnings - Solvo Co. NCI 50,000 Retained Earnings - Solvo Co. NCI
(A) (A)
Depreciation Expense - Building 5,000 Retained Earinings - Port Co.
Accumulated Depreciation - Building 5,000 Retained Earinings - Solvo Co.
Depreciation Expense - Building
Accumulated Depreciation - Building
Cost Method
Debit Credit
8,000
8,000
8,000
8,000
8,000
d - Solvo Co. 8,000
80,000
160,000
200,000
440,000
60,000
100,000
150,000
260,000
s - Solvo Co. NCI 50,000
5,000
reciation - Building 5,000
40,000
40,000
8,000
d - Solvo Co. 8,000
80,000
160,000
240,000
480,000
60,000
100,000
150,000
260,000
s - Solvo Co. NCI 50,000
4,000
1,000
5,000
reciation - Building 10,000
Problem 3-2
Common Information
Number of Market Price per

Cash Shares Share
Price Paid 320,000
Year of Consolidation (1=Year of

Purchase) 2,016

Assets
Inventory 100,000 50,000

Current Assets 50,000 180,000
Building and Equipment (net) 150,000 260,000 10
Land 50,000
Goodwill
Total Assets 300,000 540,000
Company
Implied Fair Parent Price
Value Analysis Value (80%) NCI Value (20%)
Price Paid 400,000 320,000 80,000
Fair Value of Net Assets Excluding
Goodwill 340,000 272,000 68,000
Goodwill 60,000 48,000 12,000
Gain on Acquisition
Determination and Distribution of

Excess Schedule
Company Parent Price
Value (80%) NCI Value (20%)
Less Book Value of Interest Acquired
Common Stock 50,000
Total Equity 300,000 300,000 300,000
Book Value 240,000 60,000
Adjustment of identifiable accounts:
Inventory 10,000 debit D1
Buildings 30,000 debit D2 3,000
Total 100,000
Amortization Schedule
Annual
Account Adjusted Life Amount Current Year
Inventory
Accounts Subject to Amortization
Buildings 10 3,000 3,000
Total Amortizations 3,000 3,000
Income Distribution Schedules

Subsidiary Debit Credit
Internally Generated Net Income 90,000
Inventory Adjustment
Amortizations 3,000
Total 87,000
NCI Share 17,400
Controlling Share 69,600
Parent
Controlling Share of Subsidiary 69,600
Total 169,600
Problem 3-2 Consolidated Worksheet

Trial Balance
Paro Solar
Other Current Assets 136,000 180,000
Inventory 100,000 50,000
Investment in Subsidiary 400,000 CY2
Land 50,000 50,000

Buildings and Equipment 350,000 320,000 D2
Accumulated depreciation (100,000) (60,000)
Other Intangibles 20,000
Goodwill D3
Current liabilities (120,000) (40,000)
Bonds Payable (100,000)
Other Long-Term Liabilities (200,000)
Common stock - Solar (50,000) EL

Paid-in excess -Solar (100,000) EL
Retained earnings - Solar (190,000) EL
D
A
Common stock - Paro (200,000)

Paid-in excess - Paro (100,000)
Retained earnings-Paro (214,000) D
A
Sales (520,000) (450,000)

Cost of goods sold 300,000 260,000
Operating Expenses 120,000 100,000 A
Gain on acquisition
Subsidiary (dividend) income (72,000) CY1
Dividends declared - Solar 30,000
Dividends declared - Paro 50,000
Totals 0 0
Consolidated net income
NCI share
Controlling share
NCI
Controlling retained earnings
Totals
Eliminations
Debit Credit
Investment in Solar 320,000

Cash 320,000
Elimination 2016
(CY1)
Investment in Solar Company 72,000
(CY2)
Dividends Declared - Solar Co. 24,000
(EL)
Common Stock - Solar Co. 40,000
of Par - Solar Co 80,000
Retained Earinings - Solar Co. 152,000
(D)
Retained Earinings - Paro Co. Inventory 8,000
Retained Earinings - Solar Co. Inventory 2,000
Building 30,000
Goodwill 60,000
Retained Earnings - Solar Co. NCI 20,000
(A)
Retained Earinings - Paro Co. 2,400
Retained Earinings - Solar Co. 600
Total
320,000
Book Market
Value Value Life
Liabilities
Current Liabilities 40,000

Bonds Payable 100,000
Equity
Common Stock 50,000 50,000
Other Paid in Capital 100,000 100,000
Retained Earnings 150,000 190,000
Total Liabilities and Equity 300,000 480,000

Prior Years Total Key
3,000 6,000 A
6,000
Eliminations Consol NCI Control. Consol.

Dr Cr Net Inc. R.E. Bal. Sht.
316,000
150,000
24,000 CY1 72,000
EL 272,000
D 80,000 0
100,000
30,000 700,000
A 6,000 (166,000)
20,000
60,000 60,000
(160,000)
(100,000)
(200,000)
40,000 (10,000)
80,000 (20,000)
152,000 D 20,000 (55,400)
2,000
600
(200,000)
(100,000)
8,000
2,400 (203,600)
(970,000)
560,000
3,000 223,000
72,000
CY2 24,000 6,000
50,000
474,000 474,000
(187,000)
17,400 (17,400)
169,600 (169,600)
(96,800) (96,800)
(323,200) (323,200)
0
0
Problem 3-5
Common Information

Price Paid 220,000

Assets
Cash 60,000 60,000

Inventory 40,000 40,000
Land 120,000 120,000
Building (net) 180,000 150,000 10
Goodwill
Total Assets 400,000 370,000
Company
Value Analysis Value (100%) NCI Value
Price Paid 220,000 220,000
Goodwill 250,000 250,000
Goodwill
Gain on Acquisition (30,000) (30,000)

of Excess Schedule
Value (100%) NCI
Fair Value of Subsidiary 220,000 220,000
Acquired
Total Equity 250,000 250,000
Interest Acquired 100%
Book Value 250,000
Excess of Cost over Book Value (30,000) (30,000)
accounts:
Building (30,000) credit D1 (3,000)
Goodwill
Gain on Acquisition
Total (30,000)
Account Adjusted Life Annual Amount Current Year
Inventory
Accounts Subject to Amortization
Building 10 (3,000) (3,000)
Total Amortizations
Cost to Equity Conversion

Subsidiary RE on Worksheet 0
Subsidiary RE on Purchase Date 100,000
Increase (Decrease) (100,000)
Ownership Interest % 0%
Adjustment to Investment Account 0

Subsidiary Debit Credit
Inventory Adjustment
Amortizations 3,000
Total 2,000
NCI Share 0
Parent
Total 43,000

Trial Balance
Bell Stockdon
Cash 180,000 143,000
Inventory 60,000 30,000
Investment in Subsidiary 220,000 D
Land 120,000 120,000
Buildings (net) 600,000 162,000 A
Accounts Payable (405,000) (210,000)
Common stock -Stockdon (100,000) EL
Paid-in excess - Stockdon (50,000) EL
Retained earnings - Stockdon (100,000) EL
Common stock - Bell (300,000)
Paid-in excess - Bell (180,000)
Retained earnings-Bell (255,000)
Sales (210,000) (40,000)
Cost of goods sold 120,000 35,000
Other expenses 45,000 10,000
Subsidiary (dividend) income
Dividends declared - Bell 5,000
Totals 0 0
NCI share
Controlling share
NCI
Totals
Eliminations
Debit Credit
(EL)
Common Stock - Stockdon Co. 100,000
of Par - Stockdon Co 50,000
Retained Earinings - Stockdon Co. 100,000
Investment in Stockdon Company 250,000
(D)
Investment in Stockdon Company 30,000
Building 30,000
(A)
Accumulated Depreciation 3000
General Expenses - Stockdon Company 3,000
Prepare Consolidated Statements Below:
Bell Corporation
Conslidated Income Statement
For Year Ended December 31, 2017
Sales 250,000
Less: Cost of goods sold (155,000)
Gross Profit 95,000
Less: General expenses (52,000)
Consolidated net income 43,000
Distribued to :
Noncontrolling interest 0
Controlling interest 43,000
Bell Corporation
Conslidated Retained Earnings Statement
Noncontrolling Controlling
Retained earnings, January 1, 2017 0 255,000
Consolidated net income 0 43,000
Dividends declared (5,000)
Retained earnings, December 31, 2017 0 293,000
Bell Corporation
Conslidated Retained Earnings Statement
Assets Liability and Stockholder's Equity
Cash 323,000 Accounts payable

Inventory 90,000 Controlling interest:
Land 240,000 Common stock
Building (net) 735,000 Paid-in capital in excess of
Retained earnings
Noncontrolling interest
Total Assets 1,388,000 Total Liability and Stockhol

Total
220,000
Book Market
Value Value Life
Liabilities
Liabilities 150,000 150,000
Equity
Common Stock 100,000 100,000

Paid-in capital in excess of par 50,000 50,000
Retained Earnings 100,000 100,000
Total Liabilities and Equity 400,000 400,000
For those who wish to do one.

(3,000) A

323,000
90,000
30,000 EL 250,000 0
240,000
3,000 D1 30,000 735,000
(615,000)
100,000 0
50,000 0
100,000 0
(300,000)
(180,000)
(255,000)
(250,000)
155,000
A 3,000 52,000
5,000
283,000 283,000
(43,000)
0 0
43,000 (43,000)
0 0
(293,000) (293,000)
0
atement
2017
lity and Stockholder's Equity
615,000
300,000
180,000
293,000
0
1,388,000
Problem 4-1
Company
Value Analysis Value (100%) NCI Value
Price Paid 3,300,000 3,300,000
Goodwill 3,000,000 3,000,000
Equipment 300,000 300,000
Gain on Acquisition
Determination and Distribution of

Excess Schedule
Value (100%) NCI
Fair Value of Subsidiary 3,300,000 3,300,000
Acquired
Retained Earnings 2,400,000
Total Equity 3,000,000 3,000,000
Interest Acquired 100%
Book Value 3,000,000
Excess of Cost over Book Value 300,000 300,000
Adjustment of identifiable accounts:

Equipment 300,000 credit D1 30,000
Total 300,000
Annual
Account Adjusted Life Amount Current Year Prior Years Total
Equipment 10 30,000 30,000 30,000
Total Amortizations

Trial Balance Eliminations
Plato Solo Dr
Cash 735,000 370,000
Accounts receivable 400,000 365,000 (IA)
Inventory 600,000 275,000 (EI)
Property, Plant and Equipment (net) 4,000,000 2,300,000 (D) 300,000
Investment in Solo 3,510,000 (CY1)
(EL)
(D)
Accounts Payable (35,000) (100,000) (IA) 30,000
Common stock - Plato (1,000,000)
Paid-in excess - Plato (1,500,000)
Retained earnings - Plaito (5,500,000)
Common stock - Solo (400,000) (EL) 400,000

Paid-in excess - Solo (200,000) (EL) 200,000
Retained earnings-Solo (2,400,000) (EL) 2,400,000
Sales (12,000,000) (1,000,000) (IS) 300,000

Cost of goods sold 7,000,000 750,000 (EI) 12,500 (IS)
Other expenses 4,000,000 40,000
Subsidiary (dividend) income (210,000) (CY1) 210,000
Totals 0 0 3,852,500
NCI share
Controlling share
NCI
Totals
Debit Credit
Investment in Solo Company 3,300,000

Cash 3,300,000
Solo Company:
Accounts receivable - Plato Co. 300,000
Sales 300,000
Cost of goods sold - Plato Co. 225,000

Inventory 225,000
Cash 270,000
Accounts receivable - Plato Co. 270,000
Plato Company:
Inventory 300,000
Accounts payable - Solo Co. 300,000
Cost of goods sold - to outside 250,000

Inventory 250,000
Accounts payable - Solo Co. 270,000

Cash 270,000
Eliminations
(CY1)
Investment in Solo Co. 210,000
(EL)
Common Stock - Solo Co. 400,000
of Par - Solo Co. 200,000
Retained Earinings - Solo Co. 2,400,000
Investment in Solo Co. 3,000,000
(IS)
Sales 300,000
Cost of goods sold 300,000
(EI)
Inventory, December 31, 2015 12,500
(IA)
Accounts payable 30,000
Accounts receivable 30,000
(D)
Equipment 300,000
Investment in Solo Company 300,000
(A)
Depreciation Expense - Equipment 30,000
Accumulated Depreciation - Equipment 30,000
Key
A
Consol NCI Control. Consol.

Cr Net Inc. R.E. Bal. Sht. Income Distribution Schedules
1,105,000 Subsidiary
30,000 735,000 Internally Generated Net Income
12,500 862,500 Inventory Adjustment
6,600,000 Amortizations
210,000 Total
3,000,000 NCI Share
300,000 0 Controlling Share
(105,000)
(1,000,000) Parent
(1,500,000) Internally Generated Net Income
(5,500,000) Controlling Share of Subsidiary
Total
0
0
0
(12,700,000)
300,000 7,462,500
4,040,000
3,852,500
(1,197,500)
0 0
1,197,500 (1,197,500)
0 0
(6,697,500) (6,697,500)
0
Debit Credit
Inventory Adjustment 12,500
Amortizations
197,500
0
Internally Generated Net Income 1,000,000

1,197,500
Problem 4-2
Company
Price Paid 531,250 425,000 106,250
Goodwill 400,000 320,000 80,000
Goodwill 131,250 105,000 26,250
Gain on Acquisition

of Excess Schedule
Value (80%) (20%)
Acquired
Total Equity 400,000 400,000 400,000
Book Value 320,000 80,000
accounts:
Accounts Worksheet
Adjusted Distribution
Total 131,250
Intercompany Inventory Profit Deferral

Parent Parent Parent Sub Sub Sub
Amount % Profit Amount % Profit
Beginning 9,000 20% 1,800 4,000 25% 1,000
Ending 6,000 20% 1,200 3,000 25% 750
Income distribution schedules:

Subsidiary: DR CR
Internally generated net income 45,000
Unrealized profit in ending inventory 750
Unrealized profit in beginning inventory 1,000
Total 45,250
NCI share 9,050
Controlling share 36,200
Parent
Controlling share of subsidiary 36,200
Unrealized profit in ending inventory 1,200
Total 82,800

Trial Balance Eliminations
Benton Crandel Dr Cr
Cash 191,200 44,300
Accounts receivable 290,000 97,000 (IA) 15,000
Inventory 310,000 80,000 (EI) 1,200
(EI) 750
Investment in Crayon 450,000 (CY1) 36,000 (EL) 352,000
(D) 105,000
Land 1,081,000 150,000

Building and Equipment 1,850,000 400,000
Accumulated Depreciation (940,000) (210,000)
Goodwill 60,000 (D1) 131,250
Accounts Payable (242,200) (106,300) (IA) 15,000
Bonds Payable (400,000)

Common stock - Benton (250,000)
Paid-in excess - Benton (1,250,000)
Retained earnings - Benton (1,105,000) (BI) 800 (CY1) 36,000
(BI) 1,800
Common stock - Crandel (200,000) (EL) 160,000

Paid-in excess - Crandel (100,000) (EL) 80,000
Retained earnings-Crandel (140,000) (EL) 112,000 (D) 26,250
(BI) 200
Sales (880,000) (630,000) (IS) 32,000

Cost of goods sold 704,000 504,000 (IS) 30,000 (BI) 1,000
(EI) 1,200 (BI) 1,800
(EI) 750 (IS) 32,000
(IS) 30,000
Subsidiary (dividend) income (24,000) (CY2) 24,000
Dividends Declared - Benton 25,000

Dividends Declared - Crandel 30,000 (CY2) 24,000
Totals 0 0 625,000 625,000
NCI share
Controlling share
NCI
Totals
Eliminations
Debit Credit
(CY1)
Investment in Crandel Co. 36,000
Retained earinings - Benton Co. 36,000
(CY2)
Dividends income 24,000
Dividends Declared - Crandel Co. 24,000
(EL)
Common Stock - Crandel Co. 160,000
of Par - Crandel Co. 80,000
Retained Earinings - Crandel Co. 112,000
(D)
Goodwill 131,250
Retained Earnings - Crandel Co. NCI 26,250
(BI)
Retained earnings, April 1, 2016 - 800
Retained earnings, April 1, 2016 - 200
Cost of goods sold - Crandel Co. 1,000
Retained earnings, April 1, 2016 - 1,800

Cost of goods sold - Benton Co. 1,800
(IS)
Sales - Bento to Crandel 32,000
Sales - Crandel to Bento 30,000

(EI)
Cost of goods sold - Benton Co. 1,200
Inventory, March 31, 2017 1,200
Cost of goods sold - Crandel Co. 750

Inventory, March 31, 2017 750
(IA)
Prepare Consolidated Statements Below
Benton Corporation
Conslidated Income Statement
For Year Ended March 31, 2017
Sales 1,478,000
Less: Cost of goods sold (1,175,150)
Gross Profit 302,850
Less: General expenses (211,000)
Consolidated net income 91,850
Distribued to :
Noncontrolling interest 9,050
Controlling interest 82,800
Consol NCI Control. Consol.
Net Inc. R.E. Bal. Sht.
235,500
372,000
388,050
29,000
1,231,000
2,250,000
(1,150,000)
191,250
(333,500)
(400,000)
(250,000)
(1,250,000)
(1,138,400)
(40,000)
(20,000)
(54,050)
(1,478,000)
1,175,150
211,000
25,000
6,000
(91,850)
9,050 (9,050)
82,800 (82,800)
(117,100) (117,100)
(1,196,200) (1,196,200)
0
Problem 4-3
Common Information

Price Paid 7,000 57

Assets

Inventory 40,000
Land 60,000
Buildings 200,000 350,000 20
Accumulated depreciation (50,000)
Equipment 72,000 132,000 5
Accumulated depreciation (30,000)
Goodwill
Total Assets 352,000 482,000
Company
Price Paid 550,000 400,000 150,000
Fair Value of Net Assets Excluding Goodwill 422,000 295,400 126,600
Goodwill 128,000 104,600 23,400
Gain on Acquisition
Determination and Distribution of Excess

Schedule
Value (70%) (30%)
Less Book Value of Interest Acquired
Common Stock 10,000
Total Equity 212,000 212,000 212,000
Book Value 148,400 63,600

Buildings 150,000 debit D1 7,500
Equipment 60,000 debit D2 12,000
Total 338,000
Annual
Account Adjusted Life Amount Current Year
Buildings 20 7,500 7,500
Equipment 5 12,000 12,000
Total Amortizations 19,500 19,500
Intercompany Inventory Profit Deferral

Parent Parent Parent
% Profit
Beginning 0 0% 0
Ending 0 0% 0
Income distribution schedules:

Subsidiary: DR CR
Unrealized profit in ending inventory 1,800
Amortizations 19,500
Total 1,200
NCI share 360
Controlling share 840
Parent
Controlling share of subsidiary 840
Total 165,840

Trial Balance
Packard Stude
Cash 66,000 132,000
Accounts receivable 90,000 45,000
Inventory 120,000 56,000
Land 100,000 60,000
Investment in Stude 428,000 (CY2)
Buildings 800,000 200,000 D1

Accumulated depreciation - bldgs. (220,000) (65,000)
Equipment 150,000 72,000 D2
Accumulated depreciation - equip. (90,000) (46,000)
Goodwill 0 D3
Accounts payable (60,000) (102,000) (IA)
Bond payable 0 (100,000)
Common stock - Stude (10,000) (EL)

Paid-in capital in excess of par - Stude (90,000) (EL)
Retained earnings - Stude (142,000) (EL)
(BI)
(A1)
(A2)
Common stock - Packard (100,000)
Paid-in capital in excess of par - Packard (800,000)
Retained earnings - Packard (325,000) (BI)
(A1)
(A2)
Sales (800,000) (350,000) (IS)
Cost of goods sold 450,000 208,500 (EI)
Depr. expense - building 30,000 7,500 (A1)

Depr. expense - equipment 15,000 8,000 (A2)
Interest expense 8,000
Subsidiary income (14,000) (CY1)
Dividends declared - Stude 10,000
Dividends declared - Packard 20,000
Totals 0 0
NCI share
Controlling share
NCI
Totals
Eliminations and Adjustments:
Debit Credit
(CY1)
Investment in Stude Co. 14,000
(CY2)
Dividends Declared - Stude Co. 7,000
(EL)
Common Stock - Stude Co. 7,000
of Par - Stude Co. 63,000
Retained Earinings - Stude Co. 99,400
(D)
Buildings 150,000
Equipment 60,000
Goodwill 128,000
Retained Earnings - Stude Co. NCI 86,400
(A1)
Retained Earinings - Packard Corp. 5,250
Retained Earinings - Stude Corp. 2,250
Depreciation Expense - Buildings 7,500
Accumulated Depreciation - Buildings 15,000
(A2)
Retained Earinings - Packard Corp. 8,400
Retained Earinings - Stude Corp. 3,600
Depreciation Expense - Equipment 12,000
Accumulated Depreciation - Equipment 24,000
(BI)
Retained earnings, Jan. 1, 2016 - Packard Corp. 1,750
Retained earnings, Jan. 1, 2016 - Stude Corp. 750
Cost of goods sold - Stude Corp. 2,500
(IS)
Sales - Stude to Packard 40,000
(EI)
Cost of goods sold - Stude Corp. 1,800
Inventory,Dec 31, 2016 1,800
(IA)
Total
400,000
Book
Value Market Value Life
Liabilities

Bonds payable 100,000
Equity
Common stock 10,000 150,000

Paid-in capital in
excess of par 90,000
Retained earnings 112,000
Total Liabilities and
Equity 352,000 150,000
7,500 15,000 A1
12,000 24,000 A2
19,500 39,000
Sub Sub Sub

Amount % Profit
10,000 25% 2,500
6,000 30% 1,800

198,000
(IA) 11,000 124,000
(EI) 1,800 174,200
160,000
7,000 (CY1) 14,000
(EL) 169,400
(D) 251,600 0
150,000 1,150,000
(A1) 15,000 (300,000)
60,000 282,000
(A2) 24,000 (160,000)
128,000 128,000
11,000 (151,000)
(100,000)
7,000 (3,000)
63,000 (27,000)
99,400
750 (D) 86,400
2,250
3,600 (122,400)
(100,000)
(800,000)
1,750
5,250
8,400 (309,600)
40,000 (1,110,000)
1,800 (BI) 2,500
(IS) 40,000 617,800
7,500 45,000
12,000 35,000
238,000
8,000
14,000
(CY2) 7,000 3,000
20,000
622,700 622,700
(166,200)
360 (360)
165,840 (165,840)
(149,760) (149,760)
(455,440) (455,440)
0

Assignment 2

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Assignment 2

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Problem 3-1

Number of Market Price

Acquired Company's Balance Sheet Before Purchase

Book Value Market Value Life

Current Assets 100,000

Determination and Distribution

Accounts Worksheet Annual

Entries Simple Equity Method

Investment in Solvo Company 48,000

Investment in Solvo Company 40,000

current liabilities 80,000

Common stock ($10 par) 100,000

Total Liabilities and Equity 880,000 0

Investment in Solvo Company 44,000 No entry.

Cash 8,000 Cash

Investment 2016 Investment 2016

Investment in Solvo Company 36,000 No entry.

Cash 8,000 Cash

Elimination 2015 Elimination 2015

Elimination 2016 Elimination 2016

Number of Market Price per

Year of Consolidation (1=Year of

Acquired Company's Balance Sheet Before Purchase

Book Value Market Value Life

Inventory 100,000 50,000

Determination and Distribution of

Total Amortizations 3,000 3,000

Income Distribution Schedules

Problem 3-2 Consolidated Worksheet

Land 50,000 50,000

Common stock - Solar (50,000) EL

Common stock - Paro (200,000)

Sales (520,000) (450,000)

Investment in Solar 320,000

Current Liabilities 40,000

Total Liabilities and Equity 300,000 480,000

Eliminations Consol NCI Control. Consol.

Number of Market Price

Acquired Company's Balance Sheet Before Purchase

Book Value Market Value Life

Cash 60,000 60,000

Determination and Distribution

Building 10 (3,000) (3,000)

Cost to Equity Conversion

Adjustment to Investment Account 0

Income Distribution Schedules

Problem 3-5 Consolidated Worksheet

Prepare Consolidated Statements Below:

Assets Liability and Stockholder's Equity

Cash 323,000 Accounts payable

Total Assets 1,388,000 Total Liability and Stockhol

Liabilities 150,000 150,000

Common Stock 100,000 100,000

Total Liabilities and Equity 400,000 400,000

For those who wish to do one.

Eliminations Consol NCI Control. Consol.

lity and Stockholder's Equity

Determination and Distribution of

Adjustment of identifiable accounts:

Problem 4-1 Consolidated Worksheet

Common stock - Solo (400,000) (EL) 400,000

Sales (12,000,000) (1,000,000) (IS) 300,000

Investment in Solo Company 3,300,000