U 5

CASES

Case 5-1 (45 minutes)

a. (1) Pooling Accounting:

Investment in Wheal

Capital Stock—Axel

(2) Purchase Accounting:

Investment in Wheal

Capital Stock—Axel

Other Contributed Capital—Axel

b. (1) Pooling Worksheet Entries:

Capital Stock—Wheal

Other Contributed Capital—Wheal

Investment in Wheal

(2) Purchase Worksheet Entries:

Inventory

Property, Plant, and Equipment

Secret Formula (Patent)

Goodwill

LongTerm Debt

Accounts Receivable

Accrued Employee Pensions

Investment in Wheal

Capital Stock—Wheal

Other Contributed Capital—Wheal

Retained Earnings—Wheal

Investment in Wheal

c. Consolidated Retained Earnings at Dec. 31, Year 4

Pooling Purchase

Retained Earnings, Axel

Retained Earnings, Wheal _______ —

Consolidated Retained Earnings $________ $