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Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. Calculation of fair
| Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. | Calculation of fair value of the net assets of Little Company | Journal Entry for Acquisition | Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. | Prepare the Consolidated Balance Sheet in the area below | ||||||||
| Big Company Balance Sheet | Big Company Worksheet | Big Company Balance Sheet | ||||||||||
| Assets, Liabilities & Equities | Book Value | Assets, Liabilities & Equities | Assets, Liabilities & Equities | |||||||||
| Cash | $500,000 | Cash | Cash | |||||||||
| AR | $10,000 | AR | AR | |||||||||
| Inventory | $50,000 | Inventory | Inventory | |||||||||
| Land | $40,000 | Land | Land | |||||||||
| PP&E | $400,000 | PP&E | PP&E | |||||||||
| Accumulated Depreciation | -$150,000 | Accumulated Depreciation | Accumulated Depreciation | |||||||||
| Goodwill | ||||||||||||
| Patent | $0 | Patent | Patent | |||||||||
| Total Assets | $850,000 | Total Assets | Total Assets | |||||||||
| AP | $110,000 | AP | AP | |||||||||
| Common Stock | $395,000 | Common Stock | Common Stock | |||||||||
| Additional Paid In Capital | $300,000 | Additional Paid In Capital | Additional Paid In Capital | |||||||||
| Retained Earnings | $45,000 | Retained Earnings | Retained Earnings | |||||||||
| Total Liabilities & Equity | $850,000 | Total Liabilities & Equity | Total Liabilities & Equity | |||||||||
| Little Company Balance Sheet | ||||||||||||
| Assets, Liabilities & Equities | Book Value | |||||||||||
| Cash | $35,000 | |||||||||||
| AR | $10,000 | |||||||||||
| Inventory | $65,000 | |||||||||||
| Land | $40,000 | |||||||||||
| PP&E | $40,000 | |||||||||||
| Accumulated Depreciation | -$5,000 | |||||||||||
| Patent | $0 | |||||||||||
| Total Assets | $185,000 | |||||||||||
| AP | $25,000 | |||||||||||
| Common Stock | $25,000 | |||||||||||
| Additional Paid In Capital | $35,000 | |||||||||||
| Retained Earnings | $100,000 | |||||||||||
| Total Liabilities & Equity | $185,000 | |||||||||||
| Assume that Fair Value of all noncash assets are 25% greater than book value | ||||||||||||
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Auditing A Quality System For The Defense Industry
Authors: Charles B. Robinson
1st Edition
0873890787, 978-0873890786
