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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: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 1,093,800 $446,000 $ 61,000 $ 38,000 250,800 116,000 80,000 212,000 396,000 386,000 $1,093,800 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated 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: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 1,093,800 $446,000 $ 61,000 $ 38,000 250,800 116,000 80,000 212,000 396,000 386,000 $1,093,800 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare 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
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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: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 $ 1,093,800 $ 61,000 250,800 396,000 386,000 $ 1,093,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 446,000 $ 38,000 116,000 80,000 212,000 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution Dairy Total Assets Liabilities & Equity Current payables Answer is not complete. PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company Solution Dairy Consolidation Entries Consolidated Debit Credit $ 130,000 $ 75,000 $ 13,400 $ 191,600 216,000 95,000 311,000 77,000 44,000 4,000 125,000 390,000 232,000 622,000 280,000 280,000 0 $ 1,093,000 $ 446,000 $ 4,000 $ 293,400 $ 1,249,600 Long-term liabilities Common stock Retained earnings $ 61,000 250,000 $ 38,000 116,000 396,000 80,000 386,000 212,000 $ 13,400 $ 112,400 366,000 80,000 556,000 212,000 810,000 NCI in Net assets of Solution Dairy 64,800 64,800 Total Liabilities & Equity $ 1,093,000 $ 446,000 $ 0 $ 370,200 $ 1,909,200
Transcribed Image Text: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: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 $ 1,093,800 $ 61,000 250,800 396,000 386,000 $ 1,093,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 446,000 $ 38,000 116,000 80,000 212,000 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution Dairy Total Assets Liabilities & Equity Current payables Answer is not complete. PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company Solution Dairy Consolidation Entries Consolidated Debit Credit $ 130,000 $ 75,000 $ 13,400 $ 191,600 216,000 95,000 311,000 77,000 44,000 4,000 125,000 390,000 232,000 622,000 280,000 280,000 0 $ 1,093,000 $ 446,000 $ 4,000 $ 293,400 $ 1,249,600 Long-term liabilities Common stock Retained earnings $ 61,000 250,000 $ 38,000 116,000 396,000 80,000 386,000 212,000 $ 13,400 $ 112,400 366,000 80,000 556,000 212,000 810,000 NCI in Net assets of Solution Dairy 64,800 64,800 Total Liabilities & Equity $ 1,093,000 $ 446,000 $ 0 $ 370,200 $ 1,909,200
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