CHAPTER 16

CONSOLIDATED FINANCIAL
STATEMENTS-SUBSEQUENT TO
DATE OF ACQUISITION
 OVERVIEW

Consolidated financial statements are prepared

when an entity controls one or more other entities.
CONTROL

An investor, regardless of the nature of its

involvement with an entity (the investee).

An investor controls an investee when it is

exposed, or has rights, to variable returns from its
involvement with the investee and has the ability
to affect those returns through its power over the
An investor controls an investee if and only if the investor
has all the ff:

1. Power over the investee

2. exposure, or rights, to variable returns from its

investment with the investee; and

3. the ability to use its power over the investee to affect

the amount of the investor's returns.
ACCOUNTING PROCEDURES

Consolidated financial

statements are prepared using

the following basic accounting
procedures:

A. Combine like items of assets, liabilities, equity, income,

expenses, and cash flows of the parent with those of its
subsidiaries.
B. Eliminate the carrying amount of the parent's investment
in each subsidiary and the parent's portion of equity of
each subsidiary (IFRS3 explains how to account for the
difference.
CONSOLIDATED COMPREHENSIVE INCOME

***Consolidated comprehensive income and retained

earnings, consolidated comprehensive income is
allocated to non-controlling interests and the controlling
interest (equity holders of the parent company).***

Two Approaches:

1. PARENT COMPANY APPROACH

2. ENTITY APPROACH
 PARENT COMPANY APPROACH

Consolidated comprehensive income equals the

total earnings for all companies consolidated,
less any income recorded by the parent from
the consolidating companies and any income
assigned to NCI.
 Example:

Assume that P Company owns 80% of the stock of S

Company, which was purchased at book value. During
2013, S company reports comprehensive income of
P50,000, while P company reports comprehensive income
of P120,000 including dividend income from S company of
P20,000.

Required: Consolidated comprehensive income for 2013.

 Solution:

P company comprehensive income P120,000

Dividend Income (20,000)
Comprehensive income from own operations 100,000
S company comprehensive income from
own operation 50,000
TOTAL 150,000
Less: NCI comprehensive income (50,000 x 20%) 10,000
Consolidated Comprehensive Income P140,000
 ENTITY APPROACH

Consolidated comprehensive income under the

entity approach equals total earnings of all
companies consolidated, less any income
recorded by the parent from the consolidating
companies.
 Same example:
Using the data in the illustration for P Corporation and S
Company, consolidated comprehensive income is computed
and allocated as follows:

P Company CI P120,000
Dividend Income (20,000)
CI from own operation P100,000
S company CI from own operation 50,000
Consolidated CI 150,000
Attributable to NCI ( 70,000 x 20%) 10,000
Attributable to Parent P140,000
 Two methods: Accounting for investments in a subsidiary

1. Cost method
- this method is used when the acquirer (parent) owns
directly or indirectly more than half of the voting power
of an entity (subsidiary),thereby exercising control
(IAS 27).

2. Equity Method
this method is used when the acquirer/investor owns
20% or more (less than 50%) of the voting power
of the investee /acquiree, thereby exercising
significant influence over the operations of the
investeees (IFRS 12).
 Consolidation: Wholly owned
subsidiary- Acquisition at Book Value

First Year after Acquisition

Assume that on January 2, 2013, Pete Corporation acquires all the
common stock of Sake Company for P300,000. At that time, Sake
Company has P200,000 of common stock outstanding and retained
earnings of P100,000. Analysis of the acquisition is as follows:

Price paid P300,000

Less book value of interest acquired (100%)
Common Stock P200,000
Retained Earnings 100,000
300,000
Excess P
0
On December 31, 2013, Sake Company reported the following results of
its operations:
Net Income P50,000
Dividends Paid 30,000

PARENT COMPANY ENTRIES

Using the Cost Method,Pete Corporation would make the following
entries during 2013:
Jan. 2 Investment in Sake Company 300,000
Cash 300,000
To record the purchase of Sake Company stock.
Dec.31 Cash 30,000
Dividend Income 30,000
To record 100% of Dividend from Sake Company.
 Working Elimination Entries

1. Dividend Income 30,000

Dividends declared-Sake Company
30,000
To eliminate inter-company dividends
2. Common stock-Sake Company 200,000
Retained earnings-Sake Company 100,000
Investment in Sake Company
300,000
To eliminate investment and equity accounts at date of
acquisition
 Pete Corporation and Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended December 31, 2013- First Year
Pete Sake Eliminations Consolidated
Corporaton Corporation Debit Credit
Statement of
CI
Sales 400,000 200,000 600,000

Dividend
Income 30,000 _________ (1) 30,000 __________
Total 430,000 600,000
revenue 200,000
Cost of goods 170,000 115,000 285,000
sold
Operating 50,000 20,000 70,000
Expenses
Other
Expenses 40,000 15,000 55,000

Total cost & 260,000 150,000 410,000

expenses
CI, carried 170,000 50,000 190,000
Forward
 Pete Sake Eliminations Consolidate
Corporation Company Debit Credit d

Statement
of Retained
Earnings

RE, Jan.:

Pete Corp 300,000 300,000

Sake Comp 100,000 (2)100,000

CI from above 170,000 50,000 190,000

_________ _________ _________

TOTAL 470,000 150,000 490,000

Dividends
Declared

Pete Corp 60,000 60,000

Sake Comp _________ 30,000__ (1) 30,000 __________

RE, Dec.31
Carried 410,000 120,000 430,000
Forward
 Pete Corporation Sake Company Eliminations Consolidated
Debit Credit
Statement of
Financial
Position
Cash 210,000 75,000 285,000

Accounts 75,000 50,000 125,000

Receivable
Inventory 100,000 75,000 175,000

Property and 525,000 320,000 845,000

Equipment
Investment in 300,000 (2) 300,000
Sake Com ________ _________ _________
TOTAL ASSETS 1,210,000 520,000 1,430,000

Accounts 100,000 100,000 200,000

Payable
Bonds Payable 200,000 100,000 300,000

Common Stock:

Pete Corp. 500,000 500,000

Sake Comp 200,000 (2) 200,000

RE, from above 410,000 120,000 430,000

 Consolidated CI:
Pete Corporation CI P170,000
Sake Company CI 50,000
Dividend Income (30,000)
Consolidated CI P190,000

Consolidated Retained Earnings:

Retained of Pete Corporation, Dec. 31 P410,000
Add: Pete's share of net increase in Sake's retained
Earnings [(P50,000-P30,000)x100%] 20,000
Consolidated Retained Earnings P430,000
Consolidated Financial Statements
 Pete Corporation and Subsidiary
Consolidated Statement of Comprehensive Income and Retained
earnings
Year ended December 31, 2013
Sales P600,000
Cost and Expenses:
Cost of goods sold P285,000
Operating expenses 70,000
Other expenses 55,000 410,000
Consolidated CI 190,000
Retained Earnings, Jan 1- Pete Corporation
300,000
Total 490,000
Dividends paid- Pete Corporation
60,000
Consolidated Retained Earnings, Dec. 31
 Pete Corporation and Subsidiary
Consolidated Statement of Financial Position
December 31, 2013
Assets
Current Assets
Cash P285,000
Accounts receivable 125,000
Inventory 175,000

Total Current assets 585,000

Property and equipment (net) 845,000
Total assets P1,430,000
Liabilities and Stockholders Equity
Liabilities
Accounts Payable P200,000

Bonds Payable 300,000

Total Liabilities 500,000
Stockholder's Equity
Common Stock P500,000
Retained Earnings 430,000 930,000

Total Liabilities and Stockholder's equity P1,430,000

Second and Subsequent years after Acquisition
Consolidation two years after combination is illustrated by
continuing the Example of Pete Corporation and Sake Company.
On December 31,2014, Sake Company reports net income of
P75,000 and pays Dividends of P40,000.
Parent Company Entries
Cash 40,000
Dividend Income 40,000
To record dividends received from Sake (100%)
On December 31,2014, the balances of the investment in Sake
Company account and Dividend income account are:
___________________________________________________
Investment in Sake Company (at original cost) P300,000
Dividend Income 40,000
____________________________________________________
 Working Elimination Entries

E (1) Dividend Income 40,000

Dividends declared-Sake Company 40,000
To eliminate intercompany dividends
E (2) Common stock-Sake Company 200,000
Retained earnings- Sake Company 100,000
Investment in Sake Company 300,000
To eliminate investment and subsidiary's Equity accounts at
date of acquisition
CONSOLIDATION WORKING PAPER-
SECOND YEAR
 Pete Corporation and Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended December 31, 2014- Second Year
Pete Sake Eliminations
Corporation Company Debit Credit Consolidated
Statement of
CI
Sales 450,000 300,000 750,000

Dividend 40,000 (1) 40,000

Income __________ ________ _________
Total 490,000 300,000 750,000
revenue _________ _________ ________
Cost of goods 180,000 160,000 340,000
sold
Operating 50,000 20,000 70,000
Expenses
Other 60,000 45,000 105,000
Expenses __________ _________ _________
Total costs & 290,000 225,000 515,000
Expenses ________ _________ ________
CI,carried 200,000 75,000 235,000
forward
 Pete Sake EliminationsD Consolidated
Corporation Company ebit Credit
STATEMENT OF
RETAINED
EARNINGS

RE,Jan, 1:
Pete Corp 430,000 430,000
Sake Comp 120,000 (2) 100,000 20,000
CI from above 200,000 75,000 235,000
_________ _________ _________
630,000 195,000 685,000
Dividends
Declared
Pete Corp 60,000 60,000
Sake Comp _________ 40,000 (1) 40,000 __________
RE, Dec. 31
Carried 570,000 155,000 625,000
Forward
 Pete Sake Eliminations
Corporation Company Debit Credit Consolidated
Statement of
FP
Cash 265,000 85,000 350,000
Accounts 150,000 80.000 230,000
Receivable

Inventory 180,000 90,000 270,000

Property and
Equipment (net)
475,000 300,000 775,000
Investment in 300,000 (1) 300,000
Sake Company _________ ________ _________
Total Assets 1,370,000 555,000 1,625,000
Accounts
Payable 100,000 100,000 200,000
Bonds Payable 200,000 100,000 300,000
Common Stock:

Pete Corp 500,000 500,000

Sake Comp 200,000 (2) 200,000
RE,from above 570,000 155,000 _________ _________ 625,000
Total liabilities 1,370,000 555,000 340,000 340,000 1,625,000
and equity
Consolidation: Partially owned
subsidiary- Acquisition at Book
Value
Consolidation: Partially owned subsidiary- Acquisition at
Book Value
FIRST YEAR AFTER ACQUISITION
Total Parent price NCI@FV
(80%) (20%)

Fair value of subsidiary P300,000 P240,000 P60,000

Less book value of interest acquired:
Common Stock-S Company P200,000
Retained Earnings-S company 100,000
Total P300,000 P300,000
P300,000
Interest Acquired 80% 20%
Book Value P240,000 P60,000
Excess P -0- P -0- P -0-
 During 2013, Pete Corp. would make the ff: entries to record its
investment in Sake Company stock, and receipt of dividends from Sake
Company as follows:
2013
Jan.1 Investment in SakeCompany 240,000
Cash 240,000
To record purchase of SakeCompany stock
De.31 Cash 24,000
Dividend Income 24,000
To record share in dividends paid by Sake
(P30,000 x 80%).
 Working Paper Elimination Entries
1.) Dividend Income (80%) 24,000
NCI (20%) 6,000
Dividend Declared-Sake Company 30,000
To eliminate intercompany dividends and to establish minority interest share
2.) Common Stock- Sake Company 200,000
Retained Earnings- Sake Company 100,000
Investment in Sake Company 240,000
NCI 60,000
To eliminate inter-company investment and equity accounts of subsidiary on
date of acquisition, and to establish minority interest in net assets of subsidiary.
3.) NCI in CI of subsidiary 10,000
NCI 10,000
To recognize NCI in subsidiary's net income for the year 2013 (P50,000 x 20%)
 Illustration 16-3
Pete Corporation and Subsidiary
Working paper for Consolidation Financial Statements
Year Ended December 31, 2013
Pete Sake Eliminations
Corporation Company Debit Credit Consolidated
Statement of
CI
Sales 400,000 200,000 600,000

Dividend 24,000 (1) 24,000

Income __________ __________ _________
Total revenue 424,000 200,000 600,000
________ _______ ________
Cost of goods 170,000 115,000 285,000
sold
Operating 50,000 20,000 70,000
Expenses
Other 40,000 15,000 55,000
Expenses ________ ________ ________
Total cost & 260,000 150,000 410,000
Expenses ________ ________ ________
Net/Consolid 164,000 50,000 190,000
ated income
NCI in CI of (3) 10,000 (10,000)
 Pete Sake Eliminations
Corporation Company Debit Credit Consolidated
Statement of
Retained
Earnings
RE, Jan.1:
Pete Corp 300,000 300,000
Sake Comp 100,000 (2) 100,000
CI from above 164,000 50,000 180,000
Total 464,000 150,000 480,000
Dividends
Declared

Pete Corp 60,000 60,000

Sake Comp _________ 30,000 (1) 30,000 _________
RE, Dec,31 to 404,000 120,000 420,000
BS
 Pete Sake Company Eliminations
Corporation Debit Credit Consolidated
Statement of
FP
Cash 264,000 75,000 339,000
Accounts 75,000 50,000 125,000
receivable
Inventory 100,000 75,000 175,000
Property and 525,000 320,000 845,000
equipment
Investment in 240,000 _________ (2) 240,000 _________
Sake Comp

Total Assets 1,204,000 520,000 1,484,000

Accounts 100,000 100,000 200,000
Payable
Bonds payable 200,000 100,000 300,000
Common stock:

Pete Corp 500,000 500,000

Sake Comp 200,000 (2) 200,000

RE from above 404,000 120,000 420,000

 CONSOLIDATED
FINANCIAL STATEMENTS
 Pete Corporation and Subsidiary
Consolidated Statement of CI and Retained Earnings
Year Ended December 31, 2013
Sales P600,000
Cost and Expenses:
Cost of goods sold P285,000
Operating Expenses 70,000
Other Expenses 55,000
410,000
Consolidated CI 190,000
NCI in CI of subsidiary 10,000
Attributable to parent company 180,000
Retained earnings at the beginning of year- Pete 300,000
Dividends paid- Pete (60,00)
Consolidated retained earnings, Dec.31,2013 P420,000
 Pete Corporation and Subsidiary

Consolidated Statement of Financial Position

December 31, 2013

ASSETS

Current Assets

Cash P 390,000

Accounts Receivable 125,000

Inventory 175,000

Total Current Assets 639,000

Property and Equipment (net) 845,000

Total Assets P 1, 484,000

LIABILITIES & STOCKHOLDER'S EQUITY

Accounts Payable P200,000

Bonds Payable 300,000

Total Liabilities 500,000

Stockholder's Equity

Common Stock P500,000

Retained Earnings 420,000

Total controlling interest 920,000

Non-controlling interest 64,000 984,000

Total Liabilities and Equity P1,484,000

 Consolidation: PartiallyOwned Subsidiary-
Acquisition at other than Book Value

FIRST YEAR AFTER COMBINATION- 2013

***Using the data in our previous example, assume that Pete Corporation
purchases 80% of the common stock of Sake Company on Jan.2,2013, for
P300,000. Assume further that on the date of the combination,all assets and
liabilities of Sake Company have Fair market values equal to their book value,
except for the ff:

Book value Fair Value (Under) Over-

valuation
Inventory P60,000 P65,000 P(5,000)
Property & equipment 300,000 360,000 (60,000)
P 360,000 P425,000 P(65,000)
The D & A Schedule resulting from the above ownership situation
is as follows:
Total Parent price NCI@FV
(80%) (20%)
Fair Value of Subsidiary P375,000 P300,000 P75,000
Less book value of net assets Acquired:
Common stock- S P 200,000

Retained Earnings- S 100,000

Total P300,000 P300,000 P300,000

Interest Acquired 80% 20%

Book value P240,000 P60,000

Excess P75,000 P60,000 P15,000

Allocations (adjustments)
Inventory P(5,000)
Property & equipment 60,000

Total P(65,000)

Goodwill P10,000
 Pete Corporation & Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended December 31, 2013
Pete Sake Compay Eliminations &
Corporation Adjustments Credit Consolidated
Debit
Statement of CI

Sales 400,000 200,000 600,000

Dividend 24,000 (1) 24,000

income __________ _________
Total revenue 424,000 200,000 600,000

Cost of goods 170,000 115,000 (4) 5,000 290,000

sold
Operating 50,000 20,000 (4) 6,000 76,800
expenses
Other expenses 40,000 15,000 55,000

Total costs & 260,000 150,000 421,000

expenses
Net/consolidated 164,000 50,000 179,000
CI

NCI CI of Sake _________ _________ (5) 7,800 (7,800)

Co.

CI to RE 164,000 50,000 171,200

 Pete Corp. Sake Co. E&A Credit Consolidated
Debit
Statement of
Retained
Earnings

RE, Jan.1
Pete Corp. 300,000 300,000
Sake Co. 100,000 (2) 100,000
CI from above 164,000 50,000 171,200
__________ __________ __________
Total 464,000 150,000 471,200
Dividends
declared

Pete Corp. 60,000 60,000

Sake Co. 30,000
_________ _________ ________
RE, Dec. 31 to 404,000 120,000 411,200
BS
 Pete Corp. Sake Co. E&A Credit Consolidated
Debit

Statement of FP

Cash 204,000 75,000 279,000

Accounts Receivable 75,000 50,000 125,000

Inventory 100,000 75,000 (3) 5,000 (4) 5,000 175,000

Property & Equipment 525,000 320,000 (3) 60,000 (4) 6,000 899,000
(net) (2) 240,000 } ----
(3) 60,000 } -----

Investment in Sake 300,000

Company

Goodwill (3) 10,000 10,000

TOTAL ASSETS 1,204,000 520,000 1,488,000

Accounts payable 100,000 100,000 (4) 200,000

Bonds payable 200,000 100,000 300,000

Common stock:

Pete Corp. 500,000 500,000

Sake Co. 200,000

RE, 12/31 from above 404,000 120,000 (2) 200,000 411,200

NCI (1) 6,000 (2) 60,000 } 76,800

(3) 15,000 }}
 Illustration 16-5
Pete Corporation and Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended December 31, 2014-Second Year
Pete Corp. Sake Co. E&A Credit Consolidated
Debit

Statement of
CI
Sales 450,000 300,000 750,000
Dividend 32,000 (1) 32,000 _
Income __________ ________ _________
Total Revenue 482,000 300,000 750,000
_________ _________ _______
Cost of goods 180,000 160,000 340,000
sold
Operating 50,000 20,000 (6) 6,000 76,000
Expenses
Other Expenses 60,000 45,000 105,000
_________ _________ _________
Total cost & 290,000 225,000 521,000
Expenses _________ ________ __________
Net/Consolidat 192,000 75,000 229,000
ed CI
NCI CI of sake __________ ________ (6) 13,800 (13,800)
CI to RE 192,000 75,000 215,200
 Pete Corp Sake Co. E&A Credit Consolidated
Debit

Statement of
RE
RE, Jan.1:
Pete Corp. 404,000 404,000
Sake Co. 120,000 (2) 100,000
(4) 1,800 7,200
(5) 11,000
CI from above 192,000 75,000 215, 200
_________ _________ __________
total 596,000 195,000 626,400
Dividends
declared
Pete Corp. 60,000 60,000
Sake Co. 40,000 (1) 40,000
________ ________ _________
RE, Dec. 31 to 536,000 155,000 566, 400
BS
 Pete Corp. Sake Co. E&A Consolidated
Debit Credit
Statement of FP

Cash 231,000 85,000 316,000

Accounts 150,000 80,000 230,000
Receivable
Inventory 180,000 90,000 (3) 5,000 (5) 5,000 270,000
Property & 475,000 300,000 (3) 60,000 (5) 6,000 823,000
Equipment
(net)
Investment in 300,000 (2) 240,000} __
Sake Co. stock (3) 60,000}

Goodwill __________ ___________ (3) 10,000 10,000

Total Assets 1,336,000 555,000 1,649,000
Accounts Payable 100,000 100,000 200,000

Bonds Payable 200,000 100,000 300,000

Common Stock:

Pete Corp. 500,000 500,000

Sake Co. 200,000 (2) 200,000

RE, 12/31 from 536,000 155,000 566,400

 Illustration 16-6
Pete Corp & Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended Dec. 31, 2013- First Year
Pete Corp. Sake Co. E&A Consolidated
Debit Credit
Statement of CI

Sales 400,000 200,000 600,000

Investment 31,200 (1) 31,200
Income __________ ________ ___________
Total Revenue 431,200 200,000 600,000
Cost of goods 170,000 115,000 (4) 5,000 290,000
sold
Operating 50,000 20,000 (4) 6,000 76,000
Expenses
Goodwill --- ---- (5) 2,500 2,500
impairment loss
Other Expenses 40,000 15,000 55,000
Total cost & 260,000 150,000 423,500
Expenses _________ ___________ ___________
Net/consolidated 171,200 50,000 176,500
CI to RE
NCI in CI of Sake ___________ ___________ (6) 7,800 (7,800)
CI carried forward 171,200 50,000 168,700
 Pete Sake Company Eliminations& AdjjustmentsCr Consolidated
Corporation Debit edit
Statement of
Retained
Earnings
Retained
Earnings, 300,000 100,000 (2) 100,000 300,000
January 1
CI from above 171,200 50,000 168,700
__________ _________ ___________
Total 471,200 150,000 468,700
Dividends 60,000 30,000 (1) 30,000 60,000
Declared __________ __________ __________
Retained 411,200 120,000 408,700
Earnings,
Dec.31 to BS
 Pete Corp. Sake Co. E&A Credit Consolidated
Debit

Statement of FP

Cash 204,000 75,000 279,000

Accounts Receivable 75,000 50,000 125,000

Inventory 100,000 75,000 (3) 5,000 (4) 5,000 175,000

Property & Equipment 525,000 320,000 (3) 60,000 (4) 6,000 899,000
(net) (1) 7,200 }
(2) 240,000 } __
(3) 60,000 }

Investment in Sake 307,200

Company

Goodwill (3) 10,000 (5) 2,500 7,500

TOTAL ASSETS 1,211,200 520,000 1,485,500

Accounts payable 100,000 100,000 200,000

Bonds payable 200,000 100,000 300,000

Common stock:

Pete Corp. 500,000 500,000

Sake Co. 200,000

RE, 12/31 from above 411,200 120,000 (2) 200,000 411,200

NCI (1) 6,000 (2) 60,000 }

(3) 15,000 }} 76,800
(6) 7,800 ]

Total Liabilities &equity 1,211,200 520,000 433,500 433,500 1,485,500

Illustration 16-7
Pete Corp. & Subsidiary
Working Paper for Consolidated Financial Statements
Year Ended ecember 31,2014- Second Year
Pete Corp. Sake Co. Eliminations and Adjustments Consolidated
Debit Credit
Statement of
CI
Sales 450,000 300,000 750,000
Investment 55,200 (1) 55,200 __
Income __________ __________ __________
Total 505,200 300,000 750,000
revenue __________ __________ __________
Cost of goods 180,000 160,000 340,000
sold
Operating 50,000 20,000 (4) 6,000 76,000
Expenses
Other 60,000 45,000 105,000
Expenses __________ __________ __________
Total Cost & 290,000 225,000 521,000
Expenses __________ __________ __________
Net/consolida 215,200 75,000 229,000
ted CI
NCI of CI of (13,800)
Sake __________ __________ (6) 13,800 __________
CI to RE 215,200 75,000 215,200
 Pete Sake Eliminations & Adjustments Consolidated
Corporation Company Debit Credit

Statement of
Retained
Earnings
Retained 411,200 120,000 (2) 120,000 408,700
Earnings, (5) 2,500
January 1
CI from above 215,200 75,000 215,200
__________ __________ __________
Total 626,400 195,000 623,900
Dividends 60,000 40,000 (1) 40,000 60,000
Declared __________ __________ __________
Retained 566,000 155,000 563,900
Earnings,
December 31
to BS
 Cash 231,000 85,000 316,000
Accounts Receivable 150,000 80,000 230,000

Inventory 180,000 90,000 270,000

Property & Equipment 475,000 300,000 (3) 54,000 (4) 6,000 823,000
(net) (1) 23,200
(2) 256,000 } ---
(3) 51,200 }
Investment in Sake 330,400
Company
Goodwill --------------- --------------- (3) 10,000 (5) 2,500 7,500
TOTAL ASSETS 1,366,400 555,000 1,646,500
Accounts payable 100,000 100,000 200,000

Bonds payable 200,000 100,000 300,000

Common stock:
Pete Corp. 500,000 500,000
Sake Co. 200,000 (2) 200,000
RE, 12/31 from above 566,000 155,000 563,900

NCI (1) 8,000 (2) 64,000 } 82,600

(3) 12,800 }
(6) 13,800 ]
Total Liabilities &equity 1,366,400 555,000 469,500 469,500 1,646,500