Week 4

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Problem 4-3

Name of Company Being Acquired	Stude Corporation Carol Fischer: Insert Name of Company Being Acquired in this Cell.
Name of Acquiring Company	Packard 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
	Stude Corporation			Packard Corporation	Stude 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
Accounts Payable 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. The Life should be place in Row 35.
	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	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
Gain on Sale of Assets
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
Method of Accounting for Investment--Enter Capital C for Cost or Capital E for Equity	E
Years since Acquisition
Intercompany Merchandise Information
	Parent Sales	Parent %	Subsidiary Sales	Subsidiary %
Current Year Sales
Unpaid Account Balance, at year end
Beginning Inventory
		Carol Fischer: Insert % here	Ending Inventory
		Carol Fischer: Insert % here.	Carol Fischer: Rows 31, 32, and 33 are reserved for Current Liabilities.				Carol Fischer: Insert % Here	Carol Fischer: Insert % here.	Intercompany Fixed Asset Sales
		By Parent	By Sub
Type of Fixed Asset--Enter in Columns B or C
Enter 1 for	Land
Enter 2 for	Buildings
Enter 3 for	Equipment
Profit Amount
Life of Asset--leave blank for land
Year of Sale (Assume Beginning of Year)
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	-
-	-	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				-
-				-
-				-
-				-
-				-
-				-
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
-	-	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
Intercompany Inventory Profit Deferral and Intercompany Sales and Receivables.
	Sold by Parent	Parent %	Parent Profit	Sold by Subsidiary	Subsidiary %	Subsidiary Profit
Beginning Inventory	-	0.00	-	-	0.00	-
Ending Inventory	-	0.00	-	-	0.00	-
Current Year Sales	-			-
Year End Unpaid Account Balances	-			-
Elimination Entries	Debit (Credit)	KEY
Eliminate Intercompany Merchandise Sales
Sales	-	IS
Cost of Goods Sold	-	IS
Eliminate Intercompany unpaid trade balance at year end
Accounts Payable	-	IA
Accounts Receivable	-	IA
Eliminate Profit made by parent on merchandise in subsidiary's beginning inventory
Retained Earnings-Parent	-	BI
Cost of Goods Sold	-	BI
Eliminate Profit made by parent on merchandise in subsidiary's ending inventory
Cost of Goods Sold	-	EI
Inventory	-	EI
Eliminate Profit made by subsidiary on merchandise in parents' beginning inventory
Retained Earnings-Parent	-	BI
Retained Earnings-Subsidiary	-	BI
Cost of Goods Sold	-	BI
Eliminate Profit made by subsidiary on merchandise in parents' ending inventory
Cost of Goods Sold	-	EI
Inventory	-	EI
Intercompany Fixed Asset Profit Deferral	Sale by Parent	Sale by Sub
Original Profit	-	-
Life of Asset	-	-
Annual Depreciation Adjustment	-	-
Realized in Prior Years	-	-
Balance at Start of Year	-	-
Realized in Current Year	-	-
Elimination Entry	Debit (Credit)	Key
Retained Earnings Parent	-	F
Gain on Sale of Asset	-	F
Retained Earnings Parent	-	F
Retained Earnings Subsidiary	-	F
Gain on Sale of Asset	-	F
-	-	F
-	-	F
Depreciation Expense	-	F
Depreciation Expense	-	F
-	-	F
-	-	F
Check	-
Consolidated Worksheet
	Trial Balance		Eliminations
	Packard Corporation	Stude Corporation	Key	Debit	Credit	Key	Consolidated Net Income	Non Control Interest	Controlling Retained Earnings	Consolidated Balance Sheet
Cash	-	-								-
Accounts Receivable	-	-			0	IA				-
Inventory	-	-			0	EI				-
					0	EI
-	-	-	D	0	0	D				-
-	-	-								-
-	-	-								-
Investment in Subsidiary	-	-			0	EL				-
					0	D
			CV	0	0	CV
			CY	0	0	CY
Land	-	-		0	0	D				-
					0	F
					0	F
Buildings	-	-	D	0	0	D				-
					0	F
					0	F
Accumulated Depreciation	-	-	A	0	0	A				-
			F	0
			F	0
Equipment	-	-	D	0	0	D				-
					0	F
					0	F
Accumulated Depreciation	-	-	A	0	0	A				-
			F	0
			F	0
-	-	-	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!
Accounts Payable	-	-	IA	-						-
-	-	-								-
-	-	-								-
Bonds Payable	-	-	D	0	0	D				-
-	-	-	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
			BI	-
			F	0
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
			BI	-
			BI	-
			F	-
			F	-
Dividends Declared Acquired Company	-	-			-	CY		-
Dividends Declared Acquiring Company	-	-							-
Sales	-	-	IS	-			-
Cost of Goods Sold	-	-	A		-	A	-
					-	IS
					-	BI
					-	BI
			EI	-
			EI	-
Depreciation Expense of	-	-					-
Buildings	-	-	A		0	A	-
					0	F
					0	F
Equipment	-	-	A		0	A	-
					0	F
					0	F
-	-	-	A		0	A	-
Amortization Expense of	-	-					-
-	-	-	A		0	A	-
-	-	-	A		0	A	-
-	-	-					-
Other Expenses	-	-					-
Interest Expense	-	-	A		-	A	-
Subsidiary Income	-	-	CY	0	0	CY	-
Gain on Sale of Assets	-	-	F	-			-
			F	-
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	Stude Corporation
Internally Generated Net (Income) or Loss	-
Beginning Inventory Profit	-
Ending Inventory Profit	-
Gain on Asset in Income	-
Realized Gain on Asset Sale	-
Current Year Amortizations	0
Adjusted (Income) or Loss	-
NCI Share	-
Controlling Share	-
	Packard Corporation
Internally Generated Net Income	-
Gain on Acquisition of Business	ERROR:#DIV/0!
Beginning Inventory Profit	-
Ending Inventory Profit	-
Gain on Asset in Income	-
Realized Gain on Asset Sale	-
Controlling Share of Subsidiary	-
Total	ERROR:#DIV/0!
Consolidated Net Income	ERROR:#DIV/0!