| Consolidated Balance Sheet |
| Prepare a Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards. The fair value of Marble Falls net fixed assets are $2,675,000. |
| Big Lake aquired 100% of Marble Falls for | | | 3,750,000 |
| Fair value of assets | | | 2,675,000 |
| Balance Sheet prior to acquistion | | Big Lake | Marble Falls |
| | Current assets | 4,250,000 | 500,000 |
| | fixed assets, net | 4,500,000 | 1,675,000 |
| | Liabilties | 350,000 | 125,000 |
| | Common Stock | 7,500,000 | 1,525,000 |
| | Paid in Capital | 500,000 |
| | Retained Earnings | 400,000 | 525,000 |
| 1. Determine the Fair Value of Marble Falls' net assets. |
| | Account | Fair Value |
| | Net assets |
| 2. Calculate Goodwill |
| | Purchase Price |
| | Fair value of assets |
| | Goodwill |
| 2. Prepared journal entries on Big Lake's Books |
| Worksheet |
| | Initial purchase |
| | less equity balances |
| | difference |
| | less goodwill |
| | Step up in Net assets |
| a. Prepare purchase entry | | | Debit | Credit |
| b. Prepare consolidated journal entry to consolidate equity accounts |
| c. Prepare consolidated journal entry to consolidate assets |
| 3.Prepare Consolidated balance Sheet |
| | | Big Lake | Marble Falls | Debit | Credit | Consolidated balances |
| | Current assets |
| | Fixed Assets |
| | Investment in Marble Falls |
| | Good will |
| | Total |
| | Liabilites |
| | Common Stock |
| | Paid in Capital |
| | Retained Earnings |
| | Total |
brandon282011
AC216Unit2Assignment5-Consolidation.xlsx
