Accounting assignment needed to be done by 11/30/2013 10:00pm
kindy
example.xlsxSheet1
| 100% implied value | 90% interest at 1/1/11 | ||||||
| Cost of Acquisition | 800,000 | 600,000 | |||||
| BV of Sub | 400,000 | 300,000 | |||||
| Excess Cost over Book | 50,000 | 45,000 | |||||
| Excess Cost over Book - Consolidation | 1/1/11 | 11 Adj | 12/31/11 | 12 Adj | 12/31/12 | ||
| Upstream Transaction | |||||||
| Goodwill | 50,000 | 0 | 50,000 | 0 | 50,000 | ||
| Downstream Trans | |||||||
| 11 Def Gross Profit | -5,000 | -5,000 | 5,000 | 0 | |||
| 12 Def Gross Profit | |||||||
| Deferred gain on land | -3,000 | -3,000 | 0 | 0 | |||
| Deferred gain on equip | -9000 | -9,000 | |||||
| Depr on equip (gain) | 3000 | 3,000 | |||||
| Excess cost over Bk | 50,000 | -8,000 | 42,000 | -1,000 | 44,000 | ||
| Excess Cost over Book - Equity | 1/1/11 | 11 Adj | 12/31/11 | 12 Adj | 12/31/12 | ||
| Upstream Transaction | |||||||
| Goodwill | 45,000 | 0 | 45,000 | 0 | 45,000 | ||
| Downstream Trans | |||||||
| 11 Def Gross Profit | -5,000 | -5,000 | 5,000 | 0 | |||
| 12 Def Gross Profit | -4,000 | -4,000 | |||||
| Deferred gain on land | -3,000 | -3,000 | 0 | -3,000 | |||
| Deferred gain on equip | -9,000 | -9,000 | |||||
| Depr on equip (gain) | 3000 | 3,000 | |||||
| Excess cost over Bk | 45,000 | -8,000 | 37,000 | -5,000 | 32,000 | ||
Sheet2
| STEP 1: Errors and Omissions - N/A | |||||
| 12/31/12 | Cash | 2000 | |||
| A/R | 2,000 | ||||
| Step 2: Eliminate our share of NI and Dividends of Sub | |||||
| 12/31/12 | Income from Sub | 31,000 | |||
| Dividends | 18,000 | ||||
| Investment in Sub | 13,000 | ||||
| To eliminate income and dividends from Sue and return the investment account to its beginning of the period balance | |||||
| Step 3: Establish NCI Share of Income and Eliminate Dividends | |||||
| 12/31/12 | NCI Share of Income | 4,000 | |||
| Dividends | 2,000 | ||||
| NCI Change | 2,000 | ||||
| To enter noncontrolling interest share of subsidiary income and dividends | |||||
| STEP 4: Eliminate the Investment Account | |||||
| 12/31/12 | Investment in sub (boy) | 145,000 | Part 1 | ||
| Common Stock - Sub | 50,000 | Part 2 | |||
| R/E - Sub - BOY | 70,000 | Part 2 | |||
| Inventory | 5,000 | Part 3 | |||
| Land | 3,000 | Part 3 | |||
| Goodwill | 50,000 | Part 4 | |||
| NCI - BOY | 17,000 | Part 5 | |||
| To eliminate reciprocal investment and equity balances and record beginning noncontrolling interest | |||||
| STEP 5: Eliminate Inter-co profits or loss | |||||
| 5a Inter-co sales | |||||
| 12/31/12 | Sales | 20,000 | |||
| Cogs | 20,000 | ||||
| To recognize total inter-co sales | |||||
| STEP 6: FMV Adjustments (Per Cons CF Sch) | |||||
| 12/31/12 | Inventory | 5,000 | |||
| COGS | 5,000 | ||||
| To recognize previously 11 deferred gross profit | |||||
| 12/31/12 | COGS | 4,000 | |||
| Inventory | 4,000 | ||||
| Gain on sale | 9,000 | ||||
| Equipment | 9,000 | ||||
| Equipment, net (A/D) | 3,000 | ||||
| Depr Expense | 3,000 | ||||
| To defer 12 gross profit | |||||
| STEP 7: Eliminate Reciprocals | |||||
| 12/31/12 | Accounts payable | 30,000 | |||
| Accounts receivable | 30,000 | ||||
| Dividends payable | 9,000 | ||||
| Dividends receivable | 9,000 | ||||
| To eliminate reciprocal receivable and payable balances | |||||
Sheet3
| Pal Corporation and Subsidiary | |||||
| Consolidation Workpapers | |||||
| for the year ended December 31, 2012 | |||||
| (in thousands) | |||||
| Adjustments and | Consolidated | ||||
| Pal | Sim 90% | Eliminations | Statements | ||
| Eliminations | |||||
| Income Statement | Debit Credit | ||||
| Sales | (300.0) | (100.0) | (400.0) | ||
| Income from Sim | (31.0) | 31.0 | - 0 | ||
| Gain on sale of equipment | 9.0 | 9.0 | 18.0 | ||
| Cost of sales | 140.0 | 50.0 | 4.0 | 20.0 | 169.0 |
| 5.0 | |||||
| Depreciation expense | 3.0 | (3.0) | |||
| Operating expenses | 60.0 | 10.0 | 70.0 | ||
| Consolidated NI | (146.0) | ||||
| Noncontrolling share | 4.0 | 4.0 | |||
| Controlling share of NI | (122.0) | (40.0) | (142.0) | ||
| Retained Earnings | |||||
| Retained earnings — Par | (157.0) | (157.0) | |||
| Retained earnings — Sul | (70.0) | 70.0 | - 0 | ||
| Net income | (122.0) | (40.0) | (142.0) | ||
| Dividends | 60.0 | 20.0 | 20.0 | 60.0 | |
| Retained earnings – Dec 31 | (219.0) | (90.0) | (239.0) | ||
| Balance Sheet | |||||
| Cash | 100.0 | 17.0 | 2.0 | 119.0 | |
| Accounts receivable | 90.0 | 50.0 | 32.0 | 108.0 | |
| Dividends receivable | 9.0 | 9.0 | - 0 | ||
| Accumulated depr-equipment | 3.0 | 3.0 | |||
| Inventories | 20.0 | 8.0 | 5.0 | 5.0 | 28.0 |
| Land | 40.0 | 15.0 | 3.0 | 52.0 | |
| Buildings — net | 135.0 | 50.0 | 185.0 | ||
| Equipment — net | 165.0 | 60.0 | 9.0 | 216.0 | |
| Investment in Sim | 158.0 | 13.0 | - 0 | ||
| 145.0 | |||||
| Goodwill | 50.0 | 50.0 | |||
| 717.0 | 200.0 | 761.0 | |||
| Accounts payable | (98.0) | (30.0) | 30.0 | (98.0) | |
| Dividends payable | (15.0) | (10.0) | 9.0 | (16.0) | |
| Other liabilities | (67.0) | (20.0) | (87.0) | ||
| Capital stock | (300.0) | (50.0) | 50.0 | (300.0) | |
| Retained earnings | (237.0) | (90.0) | (239.0) | ||
| (717.0) | (200.0) | ||||
| Noncontrolling interest January 1 | 17.0 | ||||
| Noncontrolling interest December 31 | 2.0 | (19.0) | |||
| - 0 | - 0 | 267.0 | 283.0 | (759.0) | |
Sheet4
| Pig Corporation and Subsidiary | |||||
| Consolidation Income Statement | |||||
| for the year 2011 | |||||
| (in thousands) | |||||
| Adjustments and | Consolidated | ||||
| Pig | Sal 90% | Eliminations | Statements | ||
| Eliminations | |||||
| Income Statement | Debit Credit | ||||
| Sales | (300.0) | (100.0) | (400.0) | ||
| Income from Sal | (31.0) | 31.0 | - 0 | ||
| Gain on building | 9.0 | 9.0 | 18.0 | ||
| Cost of sales | 140.0 | 50.0 | 4.0 | 20.0 | 169.0 |
| 5.0 | |||||
| Depreciation expense | 3.0 | (3.0) | |||
| Operating expenses | 60.0 | 10.0 | 70.0 | ||
| Consolidated NI | (146.0) | ||||
| Noncontrolling share | 4.0 | 4.0 | |||
| Controlling share of NI | (122.0) | (40.0) | (142.0) | ||
| Retained Earnings | |||||
| Retained earnings — Par | (157.0) | (157.0) | |||
| Retained earnings — Sul | (70.0) | 70.0 | - 0 | ||
| Net income | (122.0) | (40.0) | (142.0) | ||
| Dividends | 60.0 | 20.0 | 20.0 | 60.0 | |
| Retained earnings – Dec 31 | (219.0) | (90.0) | (239.0) | ||
| Balance Sheet | |||||
| Cash | 100.0 | 17.0 | 2.0 | 119.0 | |
| Accounts receivable | 90.0 | 50.0 | 32.0 | 108.0 | |
| Dividends receivable | 9.0 | 9.0 | - 0 | ||
| Accumulated depr-equipment | 3.0 | 3.0 | |||
| Inventories | 20.0 | 8.0 | 5.0 | 5.0 | 28.0 |
| Land | 40.0 | 15.0 | 3.0 | 52.0 | |
| Buildings — net | 135.0 | 50.0 | 185.0 | ||
| Equipment — net | 165.0 | 60.0 | 9.0 | 216.0 | |
| Investment in Sim | 158.0 | 13.0 | - 0 | ||
| 145.0 | |||||
| Goodwill | 50.0 | 50.0 | |||
| 717.0 | 200.0 | 761.0 | |||
| Accounts payable | (98.0) | (30.0) | 30.0 | (98.0) | |
| Dividends payable | (15.0) | (10.0) | 9.0 | (16.0) | |
| Other liabilities | (67.0) | (20.0) | (87.0) | ||
| Capital stock | (300.0) | (50.0) | 50.0 | (300.0) | |
| Retained earnings | (237.0) | (90.0) | (239.0) | ||
| (717.0) | (200.0) | ||||
| Noncontrolling interest January 1 | 17.0 | ||||
| Noncontrolling interest December 31 | 2.0 | (19.0) | |||
| - 0 | - 0 | 267.0 | 283.0 | (759.0) |
