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Exercise 3-1 Partial

Name of Company Being Acquired Huran Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Cardinal Company
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Huran Company Cardinal Company Huran Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory
Current Assets 60,000 60,000
Investment in Subsidiary
Land
Carol Fischer: Row 16 is reserved for the Land Account. 		100,000 100,000
Equipment
Carol Fischer: Reserved for a Depreciable Fixed Asset 		350,000 240,000 5
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciation 		(150,000)
Goodwill
Total Assets 360,000 400,000
Liabilities
Accounts Payable
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		(60,000) (60,000)

Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Total Liabilities (60,000) (60,000)
Equity Acquired Company
Common Stock (50,000)
Paid-in Capital in Excess of Par (100,000)
Retained Earnings (150,000)
Equity Acquiring Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Total Equity (300,000)
Total Liabilities and Equity (360,000)
Net Assets at Market of Acquired Co. 340,000
Dividends Declared Acquired Company
Dividends Declared Acquiring Company
Sales
Cost of Goods Sold
Depreciation Expense of
-
Equipment
-
Amortization Expense of
-
-
-
Other Expenses
Interest Expense
Subsidiary Income
Total Balances Balances Balances
Purchase Price
Cash 420,000
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price 420,000
Ownership Interest enter as .7 for 70% 0.80
Goodwill Applicable to NCI
Implied Value of NCI Interest 105,000.00
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition - 0
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value 525,000 420,000 105,000
Fair Value of Net Assets Excluding Goodwill 340,000 272,000 68,000
Goodwill 185,000 148,000 37,000
Gain on Acquisition -
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company 525,000 420,000 105,000
Less Book Value of Interest Acquired
Common Stock (50,000)
Paid-in Capital in Excess of Par (100,000)
Retained Earnings (150,000)
Total Equity (300,000)
Interest Acquired 0.80 0.20
Book Value (240,000) (60,000)
Excess of Fair Value over Book Value 180,000 45,000
Elimination Entry Key
Common Stock 40,000 EL
Paid-in Capital in Excess of Par 80,000 EL
Retained Earnings 120,000 EL
Investment in Subsidiary (240,000.00) EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory - D -
Current Assets - D -
Land - D
- - D -
Equipment 40,000 D 5
- - D -
- - D -
- - D -
Goodwill 185,000 D -
- - D -
- - D -
- - D -
Investment in Subsidiary (180,000) D
Gain Taken to Acquiring Co. RE/Income - 0 D
Acquired Company RE (45,000) D
Check -
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
- -
Equipment 8,000 8,000 -8000 -
- -
- -
- -
- -
- -
Total 8,000 -8000
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
- A
Equipment 8,000 A
- A
Amortization Expense of A
- A
- A
Interest Expense A
Acquired Company RE (1,600) A
Acquiring Company RE (6,400) A
Inventory - A
- - A
Accumulated Depreciation - A
- - A
- - A
- - A
- - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account - CY
Adjustment to Subsidiary Dividend Account - CY
Adjustment to Investment Account under Equity Method - CY
Consolidated Worksheet
Trial Balance Eliminations
Cardinal Company Huran Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets - - D 0 0 D -
- - - -
- - - -
Investment in Subsidiary - - (120000) EL (300,000)
D 0 (180000) D
CV 0 0 CV
CY 0 0 CY
Land - - 0 0 D -
- - - D 0 0 D -
- - - A 0 0 A -
Equipment - - D 40000 0 D 40,000
Accumulated Depreciation - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D 185000 0 D 185,000
Accounts Payable - - -
- - - -
- - - -
- - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - - EL 40,000 40,000
Paid-in Capital in Excess of Par - - EL 80,000 80,000
Retained Earnings - - EL - (45000) D (46,600)
A - (1600) A
Common Stock - - -
Paid-in Capital in Excess of Par - - -
Retained Earnings - - 0 D (6,400)
A 0 (6400) A
CV - 0 CV
Dividends Declared Acquired Company - - - CY -
Dividends Declared Acquiring Company - - -
Sales - - -
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
- - - A - A -
Equipment - - A 8,000 - A 8,000
- - - A - A -
Amortization Expense of - - -
- - - A - A -
- - - A - A -
- - - -
Other Expenses - - -
Interest Expense - - A - A -
Subsidiary Income - - CY 0 0 CY -
Gain on Acquisition of Business 0 D -
Total Balances Balances 353000 (353000) 8,000
NCI Share (1,600) 1,600
Controlling Share (6,400) 6,400
NCI 75,000 75,000
Controlling Retained Earnings - -
(0)
Income Distribution Schedules Huran Company
Internally Generated Net (Income) or Loss -
Current Year Amortizations 8,000
Adjusted (Income) or Loss 8,000
NCI Share (1,600)
Controlling Share 6,400
Cardinal Company
Internally Generated Net Income -
Gain on Acquisitin of Business -
Controlling Share of Subsidiary 6,400
Total 6,400

Exercise 3-2 Partial

Name of Company Being Acquired Shaw Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Mast Corporation
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2014
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Shaw Company Mast Corporation Shaw Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory 40,000 50,000 1
Current Assets 80,000 80,000
Investment in Subsidiary
Land
Carol Fischer: Row 16 is reserved for the Land Account. 		100,000 100,000
Buildings and Equipment
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset 		200,000 300,000 20
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion. 		-
Patent
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values. 		30,000 50,000 10
Goodwill
Total Assets 450,000 580,000
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		(50,000) (50,000)

Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Total Liabilities (50,000) (50,000)
Equity Acquired Company
Common Stock (50,000)
Paid-in Capital in Excess of Par (150,000)
Retained Earnings (200,000)
Equity Acquiring Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Total Equity (400,000)
Total Liabilities and Equity (450,000)
Net Assets at Market of Acquired Co. 530,000
Dividends Declared Acquired Company
Dividends Declared Acquiring Company
Sales
Cost of Goods Sold
Depreciation Expense of
Buildings and Equipment
-
-
Amortization Expense of
Patent
-
-
Other Expenses
Interest Expense
Subsidiary Income
Total Balances Balances Balances
Purchase Price
Cash 462,500
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price 462,500
Ownership Interest enter as .7 for 70% 0.75
Goodwill Applicable to NCI
Implied Value of NCI Interest 154,166.67
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition - 0
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value 616,667 462,500 154,167
Fair Value of Net Assets Excluding Goodwill 530,000 397,500 132,500
Goodwill 86,667 65,000 21,667
Gain on Acquisition -
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company 616,667 462,500 154,167
Less Book Value of Interest Acquired
Common Stock (50,000)
Paid-in Capital in Excess of Par (150,000)
Retained Earnings (200,000)
Total Equity (400,000)
Interest Acquired 0.75 0.25
Book Value (300,000) (100,000)
Excess of Fair Value over Book Value 162,500 54,167
Elimination Entry Key
Common Stock 37,500 EL
Paid-in Capital in Excess of Par 112,500 EL
Retained Earnings 150,000 EL
Investment in Subsidiary (300,000.00) EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory 10,000 D 1
Current Assets - D -
Land - D
Buildings and Equipment 100,000 D 20
- - D -
- - D -
Patent 20,000 D 10
- - D -
Goodwill 86,667 D -
- - D -
- - D -
- - D -
Investment in Subsidiary (162,500) D
Gain Taken to Acquiring Co. RE/Income - 0 D
Acquired Company RE (54,167) D
Check -
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory 10,000 10,000 -10000 -
Buildings and Equipment 5,000 5,000 -5000 -
- -
- -
Patent 2,000 2,000 -2000 -
- -
- -
- -
Total 17,000 -17000
Amortization Entry Debit (Credit) Key
Cost of Goods Sold 10,000 A
Depreciation Expense of A
Buildings and Equipment 5,000 A
- A
- A
Amortization Expense of A
Patent 2,000 A
- A
Interest Expense A
Acquired Company RE (4,250) A
Acquiring Company RE (12,750) A
Inventory - A
Accumulated Depreciation - A
- - A
- - A
Patent - A
- - A
- - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account - CY
Adjustment to Subsidiary Dividend Account - CY
Adjustment to Investment Account under Equity Method - CY
Consolidated Worksheet
Trial Balance Eliminations
Mast Corporation Shaw Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets - - D 0 0 D -
- - - -
- - - -
Investment in Subsidiary - - (150000) EL (312,500)
D 0 (162500) D
CV 0 0 CV
CY 0 0 CY
Land - - 0 0 D -
Buildings and Equipment - - D 100000 0 D 100,000
Accumulated Depreciation - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
Patent - - D 20000 0 D 20,000
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D 86666.6666666666 0 D 86,667
Current Liabilities - - -
- - - -
- - - -
- - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - - EL 37,500 37,500
Paid-in Capital in Excess of Par - - EL 112,500 112,500
Retained Earnings - - EL - (54167) D (58,417)
A - (4250) A
Common Stock - - -
Paid-in Capital in Excess of Par - - -
Retained Earnings - - 0 D (12,750)
A 0 (12750) A
CV - 0 CV
Dividends Declared Acquired Company - - - CY -
Dividends Declared Acquiring Company - - -
Sales - - -
Cost of Goods Sold - - A 10,000 - A 10,000
Depreciation Expense of - - -
Buildings and Equipment - - A 5,000 - A 5,000
- - - A - A -
- - - A - A -
Amortization Expense of - - -
Patent - - A 2,000 - A 2,000
- - - A - A -
- - - -
Other Expenses - - -
Interest Expense - - A - A -
Subsidiary Income - - CY 0 0 CY -
Gain on Acquisition of Business 0 D -
Total Balances Balances 373666.666666667 (383667) 17,000
NCI Share (4,250) 4,250
Controlling Share (12,750) 12,750
NCI 95,833 95,833
Controlling Retained Earnings - -
(10,000)
Income Distribution Schedules Shaw Company
Internally Generated Net (Income) or Loss -
Current Year Amortizations 17,000
Adjusted (Income) or Loss 17,000
NCI Share (4,250)
Controlling Share 12,750
Mast Corporation
Internally Generated Net Income -
Gain on Acquisitin of Business -
Controlling Share of Subsidiary 12,750
Total 12,750

Exercise 3-3 Partial

Name of Company Being Acquired Sargent Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Parker Company
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Sargent Company Parker Company Sargent Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory
Current Assets 100,000 100,000 10,000 130,000
Investment in Subsidiary 316,000
Depreciable Fixed Assets
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset 		200,000 250,000 10 400,000 200,000
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion. 		- (106,000) (20,000)
Goodwill
Total Assets 300,000 350,000
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		(50,000) (50,000) (60,000) (40,000)

Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Total Liabilities (50,000) (50,000)
Equity Acquired Company
Common Stock (100,000) (100,000)
Paid-in Capital in Excess of Par
Retained Earnings (150,000) (150,000)
Equity Acquiring Company
Common Stock (300,000)
Paid-in Capital in Excess of Par
Retained Earnings (200,000)
Total Equity (250,000)
Total Liabilities and Equity (300,000)
Net Assets at Market of Acquired Co. 300,000
Dividends Declared Acquired Company 5,000
Dividends Declared Acquiring Company
Sales (150,000) (100,000)
Cost of Goods Sold
Depreciation Expense of
Depreciable Fixed Assets
-
-
Amortization Expense of
-
-
-
Other Expenses 110,000 75,000
Interest Expense
Subsidiary Income (20,000)
Total Balances Balances Balances
Purchase Price
Cash 300,000
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price 300,000
Ownership Interest enter as .7 for 70% 0.80
Goodwill Applicable to NCI
Implied Value of NCI Interest 75,000.00
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition 1.00
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value 375,000 300,000 75,000
Fair Value of Net Assets Excluding Goodwill 300,000 240,000 60,000
Goodwill 75,000 60,000 15,000
Gain on Acquisition -
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company 375,000 300,000 75,000
Less Book Value of Interest Acquired
Common Stock (100,000)
Paid-in Capital in Excess of Par -
Retained Earnings (150,000)
Total Equity (250,000)
Interest Acquired 0.80 0.20
Book Value (200,000) (50,000)
Excess of Fair Value over Book Value 100,000 25,000
Elimination Entry Key
Common Stock 80,000 EL
Paid-in Capital in Excess of Par - EL
Retained Earnings 120,000 EL
Investment in Subsidiary (200,000.00) EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory - D -
Current Assets - D -
- - D
Depreciable Fixed Assets 50,000 D 10
- - D -
- - D -
- - D -
- - D -
Goodwill 75,000 D -
- - D -
- - D -
- - D -
Investment in Subsidiary (100,000) D
Gain Taken to Acquiring Co. RE/Income - 0 D
Acquired Company RE (25,000) D
Check -
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
Depreciable Fixed Assets 5,000 5,000 0 5,000
- -
- -
- -
- -
- -
- -
Total 5,000 0
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
Depreciable Fixed Assets 5,000 A
- A
- A
Amortization Expense of A
- A
- A
Interest Expense A
Acquired Company RE - A
Acquiring Company RE - A
Inventory - A
Accumulated Depreciation (5,000) A
- - A
- - A
- - A
- - A
- - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account 20,000 CY
Adjustment to Subsidiary Dividend Account (4,000) CY
Adjustment to Investment Account under Equity Method (16,000) CY
Consolidated Worksheet
Trial Balance Eliminations
Parker Company Sargent Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets 10,000 130,000 D 0 0 D 140,000
- - - -
- - - -
Investment in Subsidiary 316,000 - (200000) EL -
D 0 (100000) D
CV 0 0 CV
CY 0 (16000) CY
- - - 0 0 D -
Depreciable Fixed Assets 400,000 200,000 D 50000 0 D 650,000
Accumulated Depreciation (106,000) (20,000) A 0 (5000) A (131,000)
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D 75000 0 D 75,000
Current Liabilities (60,000) (40,000) (100,000)
- - - -
- - - -
- - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - (100,000) EL 80,000 (20,000)
Paid-in Capital in Excess of Par - - EL - -
Retained Earnings - (150,000) EL 120,000 (25000) D (55,000)
A - 0 A
Common Stock (300,000) - (300,000)
Paid-in Capital in Excess of Par - - -
Retained Earnings (200,000) - 0 D (200,000)
A 0 0 A
CV - 0 CV
Dividends Declared Acquired Company - 5,000 (4,000) CY 1,000
Dividends Declared Acquiring Company - - -
Sales (150,000) (100,000) (250,000)
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
Depreciable Fixed Assets - - A 5,000 - A 5,000
- - - A - A -
- - - A - A -
Amortization Expense of - - -
- - - A - A -
- - - A - A -
- - - -
Other Expenses 110,000 75,000 185,000
Interest Expense - - A - A -
Subsidiary Income (20,000) - CY 20000 0 CY -
Gain on Acquisition of Business 0 D -
Total Balances Balances 350000 (350000) (60,000)
NCI Share 4,000 (4,000)
Controlling Share 56,000 (56,000)
NCI (78,000) (78,000)
Controlling Retained Earnings (256,000) (256,000)
Balances
Income Distribution Schedules Sargent Company
Internally Generated Net (Income) or Loss (25,000)
Current Year Amortizations 5,000
Adjusted (Income) or Loss (20,000)
NCI Share 4,000
Controlling Share (16,000)
Parker Company
Internally Generated Net Income (40,000)
Gain on Acquisitin of Business -
Controlling Share of Subsidiary (16,000)
Total (56,000)

Exercise 3-4 Partial

Name of Company Being Acquired Sargemt Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Parker Company
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Sargemt Company Parker Company Sargemt Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory
Current Assets 100,000 100,000 102,000 115,000
Investment in Subsidiary 320,000
Depreciable Fixed Asset
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset 		200,000 250,000 10 400,000 200,000
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion. 		- (130,000) (40,000)
Goodwill
Total Assets 300,000 350,000
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		(50,000) (50,000) (80,000)

Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Total Liabilities (50,000) (50,000)
Equity Acquired Company
Common Stock (100,000) (100,000)
Paid-in Capital in Excess of Par
Retained Earnings (150,000) (170,000)
Equity Acquiring Company
Common Stock (300,000)
Paid-in Capital in Excess of Par
Retained Earnings (260,000)
Total Equity (250,000)
Total Liabilities and Equity (300,000)
Net Assets at Market of Acquired Co. 300,000
Dividends Declared Acquired Company 10,000
Dividends Declared Acquiring Company
Sales (200,000) (100,000)
Cost of Goods Sold
Depreciation Expense of
Depreciable Fixed Asset
-
-
Amortization Expense of
-
-
-
Other Expenses 160,000 85,000
Interest Expense
Subsidiary Income (12,000)
Total Balances Balances Balances
Purchase Price
Cash 300,000
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price 300,000
Ownership Interest enter as .7 for 70% 0.80
Goodwill Applicable to NCI
Implied Value of NCI Interest 75,000.00
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition 2.00
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value 375,000 300,000 75,000
Fair Value of Net Assets Excluding Goodwill 300,000 240,000 60,000
Goodwill 75,000 60,000 15,000
Gain on Acquisition -
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company 375,000 300,000 75,000
Less Book Value of Interest Acquired
Common Stock (100,000)
Paid-in Capital in Excess of Par -
Retained Earnings (150,000)
Total Equity (250,000)
Interest Acquired 0.80 0.20
Book Value (200,000) (50,000)
Excess of Fair Value over Book Value 100,000 25,000
Elimination Entry Key
Common Stock 80,000 EL
Paid-in Capital in Excess of Par - EL
Retained Earnings 120,000 EL
Investment in Subsidiary (200,000.00) EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory - D -
Current Assets - D -
- - D
Depreciable Fixed Asset 50,000 D 10
- - D -
- - D -
- - D -
- - D -
Goodwill 75,000 D -
- - D -
- - D -
- - D -
Investment in Subsidiary (100,000) D
Gain Taken to Acquiring Co. RE/Income - 0 D
Acquired Company RE (25,000) D
Check -
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
Depreciable Fixed Asset 5,000 5,000 5000 10,000
- -
- -
- -
- -
- -
- -
Total 5,000 5000
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
Depreciable Fixed Asset 5,000 A
- A
- A
Amortization Expense of A
- A
- A
Interest Expense A
Acquired Company RE 1,000 A
Acquiring Company RE 4,000 A
Inventory - A
Accumulated Depreciation (10,000) A
- - A
- - A
- - A
- - A
- - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account 12,000 CY
Adjustment to Subsidiary Dividend Account (8,000) CY
Adjustment to Investment Account under Equity Method (4,000) CY
Consolidated Worksheet
Trial Balance Eliminations
Parker Company Sargemt Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets 102,000 115,000 D 0 0 D 217,000
- - - -
- - - -
Investment in Subsidiary 320,000 - (216000) EL -
(100000) D
CV 0 0 CV
CY 0 (4000) CY
- - - 0 0 D -
Depreciable Fixed Asset 400,000 200,000 D 50000 0 D 650,000
Accumulated Depreciation (130,000) (40,000) A 0 (10000) A (180,000)
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D 75000 0 D 75,000
Current Liabilities (80,000) - (80,000)
- - - -
- - - -
- - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - (100,000) EL 80,000 (20,000)
Paid-in Capital in Excess of Par - - EL - -
Retained Earnings - (170,000) EL 136,000 (25000) D (58,000)
A 1,000 0 A
Common Stock (300,000) - (300,000)
Paid-in Capital in Excess of Par - - -
Retained Earnings (260,000) - 0 D (256,000)
A 4,000 0 A
CV - 0 CV
Dividends Declared Acquired Company - 10,000 (8,000) CY 2,000
Dividends Declared Acquiring Company - - -
Sales (200,000) (100,000) (300,000)
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
Depreciable Fixed Asset - - A 5,000 - A 5,000
- - - A - A -
- - - A - A -
Amortization Expense of - - -
- - - A - A -
- - - A - A -
- - - -
Other Expenses 160,000 85,000 245,000
Interest Expense - - A - A -
Subsidiary Income (12,000) - CY 12000 0 CY -
Gain on Acquisition of Business 0 D -
Total Balances Balances 363000 (363000) (50,000)
NCI Share 2,000 (2,000)
Controlling Share 48,000 (48,000)
NCI (78,000) (78,000)
Controlling Retained Earnings (304,000) (304,000)
Balances
Income Distribution Schedules Sargemt Company
Internally Generated Net (Income) or Loss (15,000)
Current Year Amortizations 5,000
Adjusted (Income) or Loss (10,000)
NCI Share 2,000
Controlling Share (8,000)
Parker Company
Internally Generated Net Income (40,000)
Gain on Acquisitin of Business -
Controlling Share of Subsidiary (8,000)
Total (48,000)

Exercise 3-5 Partial

Name of Company Being Acquired Sargent Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Parker Company
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Sargent Company Parker Company Sargent Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory
Current Assets 100,000 100,000 10,000 130,000
Investment in Subsidiary 312,000
Depreciable Fixed Assets
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset 		200,000 250,000 10 400,000 200,000
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion. 		- (106,000) (20,000)
Goodwill
Total Assets 300,000 350,000
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		(50,000) (50,000) (60,000) (40,000)

Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Total Liabilities (50,000) (50,000)
Equity Acquired Company
Common Stock (100,000) (100,000)
Paid-in Capital in Excess of Par
Retained Earnings (150,000) (150,000)
Equity Acquiring Company
Common Stock (300,000)
Paid-in Capital in Excess of Par
Retained Earnings (200,000)
Total Equity (250,000)
Total Liabilities and Equity (300,000)
Net Assets at Market of Acquired Co. 300,000
Dividends Declared Acquired Company 5,000
Dividends Declared Acquiring Company
Sales (150,000) (100,000)
Cost of Goods Sold
Depreciation Expense of
Depreciable Fixed Assets
-
-
Amortization Expense of
-
-
-
Other Expenses 110,000 75,000
Interest Expense
Subsidiary Income (16,000)
Total Balances Balances Balances
Purchase Price
Cash 300,000
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price 300,000
Ownership Interest enter as .7 for 70% 0.80
Goodwill Applicable to NCI
Implied Value of NCI Interest 75,000.00
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition 1.00
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value 375,000 300,000 75,000
Fair Value of Net Assets Excluding Goodwill 300,000 240,000 60,000
Goodwill 75,000 60,000 15,000
Gain on Acquisition -
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company 375,000 300,000 75,000
Less Book Value of Interest Acquired
Common Stock (100,000)
Paid-in Capital in Excess of Par -
Retained Earnings (150,000)
Total Equity (250,000)
Interest Acquired 0.80 0.20
Book Value (200,000) (50,000)
Excess of Fair Value over Book Value 100,000 25,000
Elimination Entry Key
Common Stock 80,000 EL
Paid-in Capital in Excess of Par - EL
Retained Earnings 120,000 EL
Investment in Subsidiary (200,000.00) EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory - D -
Current Assets - D -
- - D
Depreciable Fixed Assets 50,000 D 10
- - D -
- - D -
- - D -
- - D -
Goodwill 75,000 D -
- - D -
- - D -
- - D -
Investment in Subsidiary (100,000) D
Gain Taken to Acquiring Co. RE/Income - 0 D
Acquired Company RE (25,000) D
Check -
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
Depreciable Fixed Assets 5,000 5,000 0 5,000
- -
- -
- -
- -
- -
- -
Total 5,000 0
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
Depreciable Fixed Assets 5,000 A
- A
- A
Amortization Expense of A
- A
- A
Interest Expense A
Acquired Company RE - A
Acquiring Company RE - A
Inventory - A
Accumulated Depreciation (5,000) A
- - A
- - A
- - A
- - A
- - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account 16,000 CY
Adjustment to Subsidiary Dividend Account (4,000) CY
Adjustment to Investment Account under Equity Method (12,000) CY
Consolidated Worksheet
Trial Balance Eliminations
Parker Company Sargent Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets 10,000 130,000 D 0 0 D 140,000
- - - -
- - - -
Investment in Subsidiary 312,000 - (200000) EL -
D 0 (100000) D
CV 0 0 CV
CY 0 (12000) CY
- - - 0 0 D -
Depreciable Fixed Assets 400,000 200,000 D 50000 0 D 650,000
Accumulated Depreciation (106,000) (20,000) A 0 (5000) A (131,000)
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D 75000 0 D 75,000
Current Liabilities (60,000) (40,000) (100,000)
- - - -
- - - -
- - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - (100,000) EL 80,000 (20,000)
Paid-in Capital in Excess of Par - - EL - -
Retained Earnings - (150,000) EL 120,000 (25000) D (55,000)
A - 0 A
Common Stock (300,000) - (300,000)
Paid-in Capital in Excess of Par - - -
Retained Earnings (200,000) - 0 D (200,000)
A 0 0 A
CV - 0 CV
Dividends Declared Acquired Company - 5,000 (4,000) CY 1,000
Dividends Declared Acquiring Company - - -
Sales (150,000) (100,000) (250,000)
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
Depreciable Fixed Assets - - A 5,000 - A 5,000
- - - A - A -
- - - A - A -
Amortization Expense of - - -
- - - A - A -
- - - A - A -
- - - -
Other Expenses 110,000 75,000 185,000
Interest Expense - - A - A -
Subsidiary Income (16,000) - CY 16000 0 CY -
Gain on Acquisition of Business 0 D -
Total Balances Balances 346000 (346000) (60,000)
NCI Share 4,000 (4,000)
Controlling Share 56,000 (56,000)
NCI (78,000) (78,000)
Controlling Retained Earnings (256,000) (256,000)
Balances
Income Distribution Schedules Sargent Company
Internally Generated Net (Income) or Loss (25,000)
Current Year Amortizations 5,000
Adjusted (Income) or Loss (20,000)
NCI Share 4,000
Controlling Share (16,000)
Parker Company
Internally Generated Net Income (40,000)
Gain on Acquisitin of Business -
Controlling Share of Subsidiary (16,000)
Total (56,000)

Problem 3-2

Name of Company Being Acquired Solar Company
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Paro Company
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Solar Company Paro Company Solar Company
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Inventory 100,000
Current Assets 50,000
Investment in Subsidiary
Land
Carol Fischer: Row 16 is reserved for the Land Account.
Buildings and Equipment
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset 		150,000
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion.
Other Intangibles
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Goodwill
Total Assets 300,000 -
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities.
Bonds Payable
Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.

Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Other Long-Term Liabilities
Total Liabilities -
Equity Acquired Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Equity Acquiring Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Total Equity -
Total Liabilities and Equity -
Net Assets at Market of Acquired Co. -
Dividends Declared Acquired Company
Dividends Declared Acquiring Company
Sales
Cost of Goods Sold
Depreciation Expense of
Buildings and Equipment
-
-
Amortization Expense of
Other Intangibles
-
-
Other Expenses
Interest Expense
Subsidiary Income
Total 300,000 Balances Balances
Purchase Price
Cash
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price -
Ownership Interest enter as .7 for 70%
Goodwill Applicable to NCI
Implied Value of NCI Interest ERROR:#DIV/0!
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity E
Years since Acquisition
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value ERROR:#DIV/0! - ERROR:#DIV/0!
Fair Value of Net Assets Excluding Goodwill - - -
Goodwill ERROR:#DIV/0! - ERROR:#DIV/0!
Gain on Acquisition ERROR:#DIV/0!
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company ERROR:#DIV/0! - ERROR:#DIV/0!
Less Book Value of Interest Acquired
Common Stock -
Paid-in Capital in Excess of Par -
Retained Earnings -
Total Equity -
Interest Acquired - 0 1.00
Book Value 0 -
Excess of Fair Value over Book Value - ERROR:#DIV/0!
Elimination Entry Key
Common Stock - EL
Paid-in Capital in Excess of Par - EL
Retained Earnings - EL
Investment in Subsidiary - 0 EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory (100,000) D -
Current Assets (50,000) D -
Land - D
Buildings and Equipment (150,000) D -
- - D -
- - D -
Other Intangibles - D -
- - D -
Goodwill ERROR:#DIV/0! D -
Bonds Payable - D -
- - D -
Other Long-Term Liabilities - D -
Investment in Subsidiary - D
Gain Taken to Acquiring Co. RE/Income ERROR:#DIV/0! D
Acquired Company RE ERROR:#DIV/0! D
Check ERROR:#DIV/0!
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
Buildings and Equipment -
- -
- -
Other Intangibles -
- -
- -
Other Long-Term Liabilities -
Total 0 0
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
Buildings and Equipment A
- A
- A
Amortization Expense of A
Other Intangibles A
- A
Interest Expense A
Acquired Company RE - A
Acquiring Company RE - A
Inventory - A
Accumulated Depreciation - A
- - A
- - A
Other Intangibles - A
- - A
- - A
Other Long-Term Liabilities - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account - CY
Adjustment to Subsidiary Dividend Account - CY
Adjustment to Investment Account under Equity Method - CY
Consolidated Worksheet
Trial Balance Eliminations
Paro Company Solar Company Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
- - - -
Inventory - - -
Current Assets - - D 0 (50000) D (50,000)
- - - -
- - - -
Investment in Subsidiary - - 0 EL -
D 0 0 D
CV 0 0 CV
CY 0 0 CY
Land - - 0 0 D -
Buildings and Equipment - - D 0 (150000) D (150,000)
Accumulated Depreciation - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
Other Intangibles - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D ERROR:#DIV/0! ERROR:#DIV/0! D ERROR:#DIV/0!
Current Liabilities - - -
- - - -
- - - -
Bonds Payable - - D 0 0 D -
- - - D 0 0 D -
A 0 0 A
Other Long-Term Liabilities - - D 0 0 D -
A 0 0 A
Common Stock - - EL - -
Paid-in Capital in Excess of Par - - EL - -
Retained Earnings - - EL - ERROR:#DIV/0! D ERROR:#DIV/0!
A - 0 A
Common Stock - - -
Paid-in Capital in Excess of Par - - -
Retained Earnings - - ERROR:#DIV/0! D ERROR:#DIV/0!
A 0 0 A
CV - 0 CV
Dividends Declared Acquired Company - - - CY -
Dividends Declared Acquiring Company - - -
Sales - - -
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
Buildings and Equipment - - A - A -
- - - A - A -
- - - A - A -
Amortization Expense of - - -
Other Intangibles - - A - A -
- - - A - A -
- - - -
Other Expenses - - -
Interest Expense - - A - A -
Subsidiary Income - - CY 0 0 CY -
Gain on Acquisition of Business ERROR:#DIV/0! D ERROR:#DIV/0!
Total Balances Balances ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
NCI Share - -
Controlling Share ERROR:#DIV/0! ERROR:#DIV/0!
NCI ERROR:#DIV/0! ERROR:#DIV/0!
Controlling Retained Earnings ERROR:#DIV/0! ERROR:#DIV/0!
ERROR:#DIV/0!
Income Distribution Schedules Solar Company
Internally Generated Net (Income) or Loss -
Current Year Amortizations 0
Adjusted (Income) or Loss -
NCI Share -
Controlling Share -
Paro Company
Internally Generated Net Income -
Gain on Acquisitin of Business ERROR:#DIV/0!
Controlling Share of Subsidiary -
Total ERROR:#DIV/0!

Problem 3-10

Name of Company Being Acquired Switzer Corporation
Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company Paulcraft Corporation
Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Date of Acquisition January 1, 2015
Carol Fischer: Insert the Date of Acquisition in this Cell. 		Current Year
Date of Acquisition Trial Balance
Switzer Corporation Paulcraft Corporation Switzer Corporation
Book Market
Carol Fischer: Insert all market values even if they are the same as the fair values. 		Life
Assets
Cash
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Accounts Receivable
Carol Fischer: Reserved for Accounts Receivable
Inventory
Investment in Subsidiary
Land
Carol Fischer: Row 16 is reserved for the Land Account.
Buildings
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciaion.
Equipment
Carol Fischer: Reserved for a Depreciable Fixed Asset
Accumulated Depreciation
Carol Fischer: Reserved for Accumulated Depreciation
Goodwill
Total Assets - -
Liabilities
Current Liabilities
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities.
Bonds Payable
Carol Fischer: Rows 34, 35, and 36 are reserved for Long-Term Liabilities. Row 34 is for Bonds or Long-Term Notes Payable and Row 35 is for any premium or disount on the notes or bonds.

Carol Fischer: Insert the Name of the Acquiring Company in this cell.
Carol Fischer: Insert the Date of Acquisition in this Cell.
Carol Fischer: Insert all market values even if they are the same as the fair values.
Carol Fischer: Insert Current Assets in Cell A8 through A13. Cell A8 is reserved for Cash.
Carol Fischer: Reserved for Accounts Receivable
Carol Fischer: Do Not insert an account in this cell.
Carol Fischer: Row 16 is reserved for the Land Account.
Carol Fischer: Row 17 is reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciaion.
Carol Fischer: Reserved for a Depreciable Fixed Asset
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Reserved for a Depreciable Fixed Asset.
Carol Fischer: Reserved for Accumulated Depreciation
Carol Fischer: Rows 23 and, 24, are reserved for intangibles other than goodwill. This intangible may have differing book and market values.
Carol Fischer: Reserved for an Intangible other than goodwill where book and market values are identical.
Carol Fischer: This Cell should be left Blank
Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities. 		Discount on Bonds Payable
Total Liabilities - -
Equity Acquired Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Equity Acquiring Company
Common Stock
Paid-in Capital in Excess of Par
Retained Earnings
Total Equity -
Total Liabilities and Equity -
Net Assets at Market of Acquired Co. -
Dividends Declared Acquired Company
Dividends Declared Acquiring Company
Sales
Cost of Goods Sold
Depreciation Expense of
Buildings
Equipment
-
Amortization Expense of
-
-
-
Other Expenses
Interest Expense
Subsidiary Income
Total Balances Balances Balances
Purchase Price
Cash
Number of shares exchanged
Par value of a share of stock
Market value of a share of stock
Market value of stock exchanged -
Total purchase price -
Ownership Interest enter as .7 for 70%
Goodwill Applicable to NCI
Implied Value of NCI Interest ERROR:#DIV/0!
Estimated Value of NCI interest if not the implied proportional amount--Enter amount or 0 - 0
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity
Years since Acquisition
Value Analysis
Company Fair Value Parent Price NCI Value
Company Fair Value ERROR:#DIV/0! - ERROR:#DIV/0!
Fair Value of Net Assets Excluding Goodwill - - -
Goodwill ERROR:#DIV/0! - ERROR:#DIV/0!
Gain on Acquisition ERROR:#DIV/0!
Determination and Distribution of Excess Schedule
Implied Company Value Parent Price NCI Value
Fair Value of Company ERROR:#DIV/0! - ERROR:#DIV/0!
Less Book Value of Interest Acquired
Common Stock -
Paid-in Capital in Excess of Par -
Retained Earnings -
Total Equity -
Interest Acquired - 0 1.00
Book Value 0 -
Excess of Fair Value over Book Value - ERROR:#DIV/0!
Elimination Entry Key
Common Stock - EL
Paid-in Capital in Excess of Par - EL
Retained Earnings - EL
Investment in Subsidiary - 0 EL
Adjustment to Identifiable Accounts Debit (Credit) Key Life
Inventory - D -
- - D -
Land - D
Buildings - D -
Equipment - D -
- - D -
- - D -
- - D -
Goodwill ERROR:#DIV/0! D -
Bonds Payable - D -
Discount on Bonds Payable - D -
- - D -
Investment in Subsidiary - D
Gain Taken to Acquiring Co. RE/Income ERROR:#DIV/0! D
Acquired Company RE ERROR:#DIV/0! D
Check ERROR:#DIV/0!
Amortization Schedule
Account Adjustment Annual Amount Current Year Prior Years Total
Inventory -
Buildings -
Equipment -
- -
- -
- -
Discount on Bonds Payable -
- -
Total 0 0
Amortization Entry Debit (Credit) Key
Cost of Goods Sold A
Depreciation Expense of A
Buildings A
Equipment A
- A
Amortization Expense of A
- A
- A
Interest Expense A
Acquired Company RE - A
Acquiring Company RE - A
Inventory - A
Accumulated Depreciation - A
Accumulated Depreciation - A
- - A
- - A
- - A
Discount on Bonds Payable - A
- - A
Total -
Method Adjustment Schedule Debit (Credit) Key
Is Adjustment Necessary? NO
Adjustment to Investment Account - CV
Adjustment to Retained Earnings Account - CV
Date Alignment Schedule Debit (Credit) Key
Adjustment to Subsidiary Income Account - CY
Adjustment to Subsidiary Dividend Account - CY
Adjustment to Investment Account under Equity Method - CY
Consolidated Worksheet
Trial Balance Eliminations
Paulcraft Corporation Switzer Corporation Key Debit Credit Key Consolidated Net Income Non Control Interest Controlling Retained Earnings Consolidated Balance Sheet
Cash - - -
Accounts Receivable - - -
Inventory - - -
- - - D 0 0 D -
- - - -
- - - -
Investment in Subsidiary - - 0 EL -
D 0 0 D
CV 0 0 CV
CY 0 0 CY
Land - - 0 0 D -
Buildings - - D 0 0 D -
Accumulated Depreciation - - A 0 0 A -
Equipment - - D 0 0 D -
Accumulated Depreciation - - A 0 0 A -
- - - D 0 0 D -
- - - A 0 0 A -
- - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
- - - -
Goodwill - - D ERROR:#DIV/0! ERROR:#DIV/0! D ERROR:#DIV/0!
Current Liabilities - - -
- - - -
- - - -
Bonds Payable - - D 0 0 D -
Discount on Bonds Payable - - D 0 0 D -
A 0 0 A
- - - D 0 0 D -
A 0 0 A
Common Stock - - EL - -
Paid-in Capital in Excess of Par - - EL - -
Retained Earnings - - EL - ERROR:#DIV/0! D ERROR:#DIV/0!
A - 0 A
Common Stock - - -
Paid-in Capital in Excess of Par - - -
Retained Earnings - - ERROR:#DIV/0! D ERROR:#DIV/0!
A 0 0 A
CV - 0 CV
Dividends Declared Acquired Company - - - CY -
Dividends Declared Acquiring Company - - -
Sales - - -
Cost of Goods Sold - - A - A -
Depreciation Expense of - - -
Buildings - - A - A -
Equipment - - A - A -
- - - A - A -
Amortization Expense of - - -
- - - A - A -
- - - A - A -
- - - -
Other Expenses - - -
Interest Expense - - A - A -
Subsidiary Income - - CY 0 0 CY -
Gain on Acquisition of Business ERROR:#DIV/0! D ERROR:#DIV/0!
Total Balances Balances ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
NCI Share - -
Controlling Share ERROR:#DIV/0! ERROR:#DIV/0!
NCI ERROR:#DIV/0! ERROR:#DIV/0!
Controlling Retained Earnings ERROR:#DIV/0! ERROR:#DIV/0!
ERROR:#DIV/0!
Income Distribution Schedules Switzer Corporation
Internally Generated Net (Income) or Loss -
Current Year Amortizations 0
Adjusted (Income) or Loss -
NCI Share -
Controlling Share -
Paulcraft Corporation
Internally Generated Net Income -
Gain on Acquisitin of Business ERROR:#DIV/0!
Controlling Share of Subsidiary -
Total ERROR:#DIV/0!