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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 Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Solution Dairy Problem Company $ $ 0 $ 0 $ 0 $ 0 $ Consolidation Entries Debit Credit 0$ 0 $ Consolidated 0 $ 0 s 0 0

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 Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Solution Dairy Problem Company $ $ 0 $ 0 $ 0 $ 0 $ Consolidation Entries Debit Credit 0$ 0 $ Consolidated 0 $ 0 s 0 0

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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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 $ 149,000 217,000 77,000 396,000 273,600 $ 1,112,600 Solution Dairy $ 76,000 266,600 390,000 380,000 $ 71,000 91,000 60,000 238,000 $ 460,000 $ 28,000 158,000 62,000 212,000 $ 1,112,600 $ 460,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,400. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $13,000 plus $1,500 accrued interest. Solution had recorded the accrued interest, but Problem had not.
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 $ 149,000 217,000 77,000 396,000 273,600 $ 1,112,600 Solution Dairy $ 76,000 266,600 390,000 380,000 $ 71,000 91,000 60,000 238,000 $ 460,000 $ 28,000 158,000 62,000 212,000 $ 1,112,600 $ 460,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,400. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $13,000 plus $1,500 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 Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company $ Solution Dairy 0 $ 0 $ 0$ 0 $ Consolidation Entries Credit Debit 0 $ 0 $ Consolidated 0 $ 0 $ 0
Transcribed Image Text: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 Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company $ Solution Dairy 0 $ 0 $ 0$ 0 $ Consolidation Entries Credit Debit 0 $ 0 $ Consolidated 0 $ 0 $ 0
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