BRANSON General Journal Account Debit Credit a. Acquisition Method: Investment in Wolipack, Inc. Contingent performance obligation Cash b. 12/31/2017 Loss from increase in contingent performance obligation Contingent performance obligation 12/31/2018 Loss from increase in contingent performance obligation Contingent performance obligation 12/31/2018 Contingent performance obligation Cash c. Equity Method: Common stock-Wolfpack Retained eamings - Wolfpack Imvestment in Wolfpack Royalty agreements Goodwill Investment in Wollpack Equity earnings of Wolfpack Investment in Wolfpack Imvestment in Wollpack Dividends declared Amortization expense Royalty agreements Investment in Woltpack Investment in Wolfpack Dividends declared Amortization expense Royalty agreements d. Initial Value Method: Investment in Wolfpack Retained earnings - Branson Common stock - Wolfpack Retained earnings - Wolfpack Investment in Wolfpack Royalty agreements Goodwill Investment in Wolfpack Dimdend income Dividends declared Amortization expense Royalty agreements Branson paid cash for all outstanding common stock of Wolfpack, Inc. Wolfpack's book value at date of acquisition Book value of Wolfpack's common stock Book value of Wolfpack's retained earnings Fair value of Wolfpack's unrecorded royalty agreements Remaining life of Wolfpack's royalty agreements Additional cash paid to previous owners of Wolfpack if income exceeds $120,000 over first two years. Probability adjusted present value of contingent consideration Increased present value of contingency at 12/31/17 Wolfpack's balances during subsequent years: \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{NetIncome} & \multicolumn{2}{|c|}{DividendsDeclared} \\ \hline 2017 & $ & 65,000 & $ & 25,000 \\ \hline 2018 & & 75,000 & & 35,000 \\ \hline \end{tabular} \begin{tabular}{rr} $ & 465,000 \\ \hline$ & 340,000 \\ $ & 200,000 \\ $ & 140,000 \\ $ & 100,000 \\ & 10 \\ & \\ $ & 50,000 \\ & \\ $ & 35,000 \\ $ & 40,000 \\ \hline \end{tabular}