GENERAL JOURNAL (1)

Acc. Description Dr Cr
Retained Earning $ 25,000.00
E1
Equipment $ 25,000.00

A/P $ 17,000.00
E2
A/R $ 17,000.00

Common Stock $ 50,000.00

Add. Paid-in Capital $ 25,000.00
E3
Retained Earning $ 65,000.00
Investment in Bortz $ 140,000.00
 Consolidated worksheet (1)
Potash Bortz Elimination Consolidated F/S
Acc. Description
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash $ 50,000.00 $ 35,000.00 $ - $ - $ 85,000.00
A/R $ 110,000.00 $ 60,000.00 $ - $ 17,000.00 $ 153,000.00
Inventory $ 95,000.00 $ 75,000.00 $ - $ - $ 170,000.00
Equipment $ 230,000.00 $ 105,000.00 $ - $ 25,000.00 $ 310,000.00
Investment in Bortz $ 140,000.00 $ - $ - $ 140,000.00 -
A/P $ 82,000.00 $ 28,000.00 $ 17,000.00 $ - $ 93,000.00
N/P $ 200,000.00 $ 107,000.00 $ - $ - $ 307,000.00
Common Stock $ 180,000.00 $ 50,000.00 $ 50,000.00 $ - $ 180,000.00
Add. Paid-in Capital $ - $ 25,000.00 $ 25,000.00 $ - $ -
Retained Earning $ 163,000.00 $ 65,000.00 $ 90,000.00 $ - $ 138,000.00

Total $ 625,000.00 $ 625,000.00 $ 275,000.00 $ 275,000.00 $ 182,000.00 $ 182,000.00 $ 718,000.00 $ 718,000.00

 Consolidate balance sheet (1)
Assets
Cash $ 85,000.00
A/R $ 153,000.00
Inventory $ 170,000.00
Equipment $ 310,000.00
Total Assets $ 718,000.00

Liabilities
A/P $ 93,000.00
N/P $ 307,000.00
Total Liabilities $ 400,000.00

Equity
Common Stock $ 180,000.00
Retained Earning $ 138,000.00
Total Equity $ 318,000.00

Total Liabilities & Equity $ 718,000.00

 Goodwill
Investment Cost $ 140,000.00
Book Value
Common Stock $ 50,000.00
Paid-in Capital $ 25,000.00
Retained Earnings $ 65,000.00
Total Net Assets $ 140,000.00
% Acquisition 80% $ 112,000.00
Excess of Investment Cost Over Book Value $ 28,000.00
Inventory $ (7,000.00)
Equipment $ (10,000.00)
Goodwill $ 11,000.00
 GENERAL JOURNAL (2)

Acc. Description Dr Cr
Retained Earning $ 25,000.00
E1
Equipment $ 25,000.00

A/P $ 17,000.00
E2
A/R $ 17,000.00

Common Stock $ 50,000.00

Add. Paid-in Capital $ 25,000.00
Retained Earning $ 65,000.00
Inventory $ 7,000.00
E3
Equipment $ 10,000.00
Goodwill $ 11,000.00
Investment in Bortz $ 140,000.00
Minority Interest $ 28,000.00
 Consolidated worksheet (2)
Potash Bortz Elimination Consolidated F/S
Acc. Description
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash $ 50,000.00 $ 35,000.00 $ - $ - $ 85,000.00
A/R $ 110,000.00 $ 60,000.00 $ - $ 17,000.00 $ 153,000.00
Inventory $ 95,000.00 $ 75,000.00 $ 7,000.00 $ - $ 177,000.00
Equipment $ 230,000.00 $ 105,000.00 $ 10,000.00 $ 25,000.00 $ 320,000.00
Investment in Bortz $ 140,000.00 $ - $ - $ 140,000.00 -
Goodwill $ 11,000.00 $ - $ 11,000.00
A/P $ 82,000.00 $ 28,000.00 $ 17,000.00 $ - $ 93,000.00
N/P $ 200,000.00 $ 107,000.00 $ - $ - $ 307,000.00
Common Stock $ 180,000.00 $ 50,000.00 $ 50,000.00 $ - $ 180,000.00
Add. Paid-in Capital $ - $ 25,000.00 $ 25,000.00 $ - $ -
Retained Earning $ 163,000.00 $ 65,000.00 $ 90,000.00 $ - $ 138,000.00
Minority Interest $ - $ 28,000.00 $ 28,000.00

Total $ 625,000.00 $ 625,000.00 $ 275,000.00 $ 275,000.00 $ 210,000.00 $ 210,000.00 $ 746,000.00 $ 746,000.00

 Consolidate balance sheet (2)
Assets
Cash $ 85,000.00
A/R $ 153,000.00
Inventory $ 177,000.00
Equipment $ 320,000.00
Goodwill $ 11,000.00
Total Assets $ 746,000.00

Liabilities
A/P $ 93,000.00
N/P $ 307,000.00
Total Liabilities $ 400,000.00

Equity
Common Stock $ 180,000.00
Retained Earning $ 138,000.00
Minority Interest $ 28,000.00
Total Equity $ 346,000.00

Total Liabilities & Equity $ 746,000.00