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E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a consolidated balance sheet worksheet.

E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a consolidated balance sheet worksheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a consolidated balance sheet worksheet.
Transcribed Image Text:E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a consolidated balance sheet worksheet.
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