Assume a parent company acquired 100% of a subsidiary on 1/1/X1 at a purchase price that was $300,000 in excess of the subsidiarys book value. Of that excess, $200,000 was assigned to an unrecorded patent that is being amortized over 10 years. The remaining $100,000 was assigned to goodwill. In the year X2, the subsidiary sold land to the parent for $100,000. The land was reported on the balance sheet of the subsidiary for $70,000 at the date of sale.

The financial statements for the parent and subsidiary for the year ended 12/31/X3 are attached in the Excel spreadsheet.

Using the ACT470_Mod04-Option02.xlsx Excel spreadsheet in the Module 4 folder:

• Prepare the consolidated financial statements at 12/31/X3 by placing the appropriate entries in their respective debit/credit column cells.
• Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is a [C], [E], [A], [D] or [I]entry.
• Use Excel formulas to derive the Consolidated column amounts and totals.
• Using the Home key in Excel, go to the Styles area and highlight the [C], [E], [A], [D] or [I]entry cells in different shades.
• Review the grading rubric following this assignment, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment

X ACT470 Module_04_Option_02 - Microsoft Excel (Product Activation Failed) Review View ? File Formulas X Home Insert Page Layout Data Insert Calibri A A General Wrap Text 11 Delete Conditional Format as Cell Sort & Find & Paste caMerge& Center .00 0 $ % U Format .00 Formatting Table Styles Filter Select Clipboard Font Alignment fACT470-Module 4-Option 2 Number Styles Cells Editing A1 A B C E G H K L M N O 1 ACT470-Module 4-Option 2 Consolidation Entries 2 Parent Subsidiary Consolidated 3 Dr Cr 4 Module 4-Option 2 5 Sales 3,000,000 375,000 0 6 Cost of goods sold 7 Gross profit 8 Income (loss) from subsidiary 9 Operating expenses (2,100,000) 900,000 (225,000) 150,000 0 0 32,500 0 0 (570,000) (97,500) 0 10 Net income 362,500 52,500 0 11 12 Statement of Retained Earnings: 13 BOY retained earnings 193,750 1,477,200 0 14 Net income 362,500 52,500 0 15 Dividends (83,375) (6,825) 0 16 EOY retained earnings 1,756,325 239,425 0 17 18 Balance Sheet: 19 Assets 20 Cash 121,211 341,566 0 21 Accounts receivable 384,000 87,000 0 22 Inventory 582,000 111,750 0 2,799,600 23 PPE, net 206,750 0 24 Patent 0 25 Goodwill 0 505,675 26 Equity investment 0 27 28 29 4,612,841 526,711 C 30 Liabilities & stockholders' equity 31 Accounts payable 32 Other current liabilities 224,700 44,760 0 276,816 61,276 0 33 Long-term liabilities 34 Common stock 1,500,000 125,000 0 490,500 25,000 31,250 239,425 35 APIC 364,500 36 Retained earnings 1,756,325 0 4,612,841 526,711 37 0 0 0 38 Sheet1 K 75% + Ready 9:14 AM 9/5/2019