A) MAKE THE JOURNAL ENTRY POTTER MAKES CONNECTED WITH ITS INVESTMENT IN HOGWARTS (YOU DO NOT HAVE TO MAKE THE ENTRY OF JAN. 2 ACQUIRING THE COMPANY)

B) FILL IN THE ANSWERS FOR A THROUGH G

LET ME KNOW WHAT METHOD (INITIAL VALUE, EQUITY, PARTIAL EQUITY) YOU ARE USING

C) MAKE ANY NECESSARY WORKSHEET ENTRIES

D) PREPARE A CONSOLIDATED BALANCE SHEET ON 12/31/2017

E) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2017

HINT: DON'T FORGET ABOUT DIVIDENDS THAT HOGWARTS AND/OR POTTER MAY HAVE PAID.

0 1 THIS IS A CONTINUATION OF 80%BAL 2 On December 31, 2017 Potter and Hogwarts had the following balance sheets Income statements Potter Hogwarts 6 revenue 7depreciation expense equip 8 depreciation expense bldg 9 amortization exp 5,000,000 100000 200,000 80,000 10000 10,000 5000 Note: the building, equipment and patent of Hogwarts each have a 10 year remaining life with no salvage and straight line depreciation is used patent investment income 11 income 12 55,000 14 16 Hogwarts 100,000 100,000 20,000 20,000 100,000 40,000 45,000 9 cash 20 equipment 21 a/d equip 22 Land 23 building 24 a/d building 25 patent 26 Investment in Hogwarts 27 total assets 28 29 accounts payable 0 notes payable 31 2 common stock $5 par 33 apic c/s 34 r/e 3,000,000 1,000,000 200,000 2,000,000 3,000,000 1,200,000 45,000 305,000 1,000,000 1,000,000 40,000 40,000 150,000 The only stock transaction Potter had in 2017 was the purchase of Hogwarts 75,000 0 1 THIS IS A CONTINUATION OF 80%BAL 2 On December 31, 2017 Potter and Hogwarts had the following balance sheets Income statements Potter Hogwarts 6 revenue 7depreciation expense equip 8 depreciation expense bldg 9 amortization exp 5,000,000 100000 200,000 80,000 10000 10,000 5000 Note: the building, equipment and patent of Hogwarts each have a 10 year remaining life with no salvage and straight line depreciation is used patent investment income 11 income 12 55,000 14 16 Hogwarts 100,000 100,000 20,000 20,000 100,000 40,000 45,000 9 cash 20 equipment 21 a/d equip 22 Land 23 building 24 a/d building 25 patent 26 Investment in Hogwarts 27 total assets 28 29 accounts payable 0 notes payable 31 2 common stock $5 par 33 apic c/s 34 r/e 3,000,000 1,000,000 200,000 2,000,000 3,000,000 1,200,000 45,000 305,000 1,000,000 1,000,000 40,000 40,000 150,000 The only stock transaction Potter had in 2017 was the purchase of Hogwarts 75,000