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.
Submission Requirements:
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.
ACT470_Module_04_Option_02 - Excel Jon and Emily Widdifield ESSE File Insert Home Page Layout Formulas Data Review View Help Tell me what you want to do Share Cut Calibri General X Autosum General A - 11 D. 1 O AA = = = A, EEE Be Copy On E ab Wrap Text Merge & Center - Paste BIU. E $ - % , 8.09 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Format Painter Clipboard Clear Sort & Find & Filter - Select Editing Font Alignment Number Cells B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB 1 ACT470-Module 4-Option 2 Consolidation Entries Dr Parent Subsidiary Cr Consolidated 4 Module 1- Option 2 5 Sales 6 Cost of goods sold 7 Gross profit 8 Income (loss) from subsidiary 9 Operating expenses 10 Net income 375,000 (225,000 150,000 3,000,000 (2,100,000) 900,000 32,500 (570,000) 362,500 (97,500) 52,500 T 12 Statement of Retained Earnings: 13 BOY retained earnings 14 Net income 15 Dividends 16 EOY retained earnings 1,477,200 362,500 (83,375) 1,756,325 193,750 52,500 (6,825) 239,425 18 Balance Sheet: 13 Assets 20 Cash 21 Accounts receivable 22 Inventory 23 PPE, net 24 Patent 25 Goodwill 26 Equity investment 341,566 384,000 582,000 2,799,600 121,211 87,000 111,750 206,750 505,675 4,612,841 526,711 30 Liabilities & stockholders' equity 31 Accounts payable 32 Other current liabilities 33 Long-term liabilities 34 Common stock 35 APIC 36 Retained earnings 224,700 276,816 1,500,000 490,500 364,500 1,756,325 4,612,841 44.760 61,276 125,000 25,000 31,250 239,425 526,711 37 0 0 38 Sheet1 + Ready @ J - H + 62% 4:30 PM ^dora Do 9/4/2019 F2 Type here to search ACT470_Module_04_Option_02 - Excel Jon and Emily Widdifield ESSE File Insert Home Page Layout Formulas Data Review View Help Tell me what you want to do Share Cut Calibri General X Autosum General A - 11 D. 1 O AA = = = A, EEE Be Copy On E ab Wrap Text Merge & Center - Paste BIU. E $ - % , 8.09 Insert Delete Format Conditional Format as Cell Formatting Table Styles Styles Format Painter Clipboard Clear Sort & Find & Filter - Select Editing Font Alignment Number Cells B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB 1 ACT470-Module 4-Option 2 Consolidation Entries Dr Parent Subsidiary Cr Consolidated 4 Module 1- Option 2 5 Sales 6 Cost of goods sold 7 Gross profit 8 Income (loss) from subsidiary 9 Operating expenses 10 Net income 375,000 (225,000 150,000 3,000,000 (2,100,000) 900,000 32,500 (570,000) 362,500 (97,500) 52,500 T 12 Statement of Retained Earnings: 13 BOY retained earnings 14 Net income 15 Dividends 16 EOY retained earnings 1,477,200 362,500 (83,375) 1,756,325 193,750 52,500 (6,825) 239,425 18 Balance Sheet: 13 Assets 20 Cash 21 Accounts receivable 22 Inventory 23 PPE, net 24 Patent 25 Goodwill 26 Equity investment 341,566 384,000 582,000 2,799,600 121,211 87,000 111,750 206,750 505,675 4,612,841 526,711 30 Liabilities & stockholders' equity 31 Accounts payable 32 Other current liabilities 33 Long-term liabilities 34 Common stock 35 APIC 36 Retained earnings 224,700 276,816 1,500,000 490,500 364,500 1,756,325 4,612,841 44.760 61,276 125,000 25,000 31,250 239,425 526,711 37 0 0 38 Sheet1 + Ready @ J - H + 62% 4:30 PM ^dora Do 9/4/2019 F2 Type here to search
