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  • Bizcom Problem 3-1

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    kate trisha
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    This document shows the consolidation of Sunny Co. and its subsidiary Rainy Co. It provides the carrying amounts and fair values of assets and liabilities for each company. It then shows the consolidation adjustments made, such as adjusting the investment value and allocating retained earnings. The consolidated statement of financial position combines the accounts of both companies and non-controlling interest.

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    BIZCOM PROBLEM 3-1

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    This document shows the consolidation of Sunny Co. and its subsidiary Rainy Co. It provides the carrying amounts and fair values of assets and liabilities for each company. It then shows the consolidation adjustments made, such as adjusting the investment value and allocating retained earnings. The consolidated statement of financial position combines the accounts of both companies and non-controlling interest.

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    © All Rights Reserved
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    42 views1 page

    Bizcom Problem 3-1

    Uploaded by

    kate trisha
    This document shows the consolidation of Sunny Co. and its subsidiary Rainy Co. It provides the carrying amounts and fair values of assets and liabilities for each company. It then shows the consolidation adjustments made, such as adjusting the investment value and allocating retained earnings. The consolidated statement of financial position combines the accounts of both companies and non-controlling interest.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Sunny Co. Rainy Co. Rainy Co.

    ADJUSTMENTS

    (Carrying Amount) (Carrying Amount) (Fair Value) Dr. Cr. CONSOLIDATED BALANCE

    Cash 80,000.00 50,000.00 50,000.00 130,000.00 PARENT'S BOOKS


    Inventory 400,000.00 120,000.00 80,000.00 40,000.00 480,000.00 Investment in Subsidiary 300,000.00
    Investment in Subsidiary 300,000.00 174,000.00 0.00 Cash 300,000.00
    126,000.00
    Land 600,000.00 200,000.00 250,000.00 50,000.00 850,000.00 WORKING PAPER
    Goodwill 120,000.00 120,000.00 Share Capital 250,000.00
    Total Assets 1,380,000.00 370,000.00 380,000.00 1,580,000.00 Retained Earnings 40,000.00
    Investment in Subsidiary 174,000.00
    Accounts Payable 200,000.00 80,000.00 80,000.00 280,000.00 NCI 116,000.00
    Share Capital 1,000,000.00 250,000.00 250,000.00 250,000.00 1,000,000.00
    Retained Earnings 180,000.00 40,000.00 50,000.00 40,000.00 180,000.00 Land 50,000.00
    NCI 120,000.00 120,000.00 Goodwill 120,000.00
    Total liabilities and SHE 1,380,000.00 370,000.00 380,000.00 1,580,000.00 Inventory 40,000.00
    Investment in Subsidiary 126,000.00
    NCI (10k x 40%) 4,000.00
    Consideration 300,000.00 FVNA 300,000.00
    Less: BVNA 174,000.00 Multiply: NCI % 0.40
    Allocated Excess 126,000.00 NCI 120,000.00
    Less: FVAs 6,000.00
    Goodwill 120,000.00

    Sunny Co. and Subsidiary


    Consolidated Statement of Financial Position
    January 1, 20x1

    Assets
    Cash 130,000.00
    Inventory 480,000.00
    Land 850,000.00
    Goodwill 120,000.00
    Total Assets 1,580,000.00

    Liabilities and SHE


    Liabilities
    Accounts Payable 280,000.00
    Total Liabilities 280,000.00
    SHE
    Share Capital 1,000,000.00
    Retained Earnings 180,000.00
    Parent's SHE 1,180,000.00
    NCI 120,000.00
    Total SHE 1,300,000.00
    Total liabilities and SHE 1,580,000.00

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