Chapter 4. 1. Following is the balance sheet for Cake at 1/1/2014. On 1/1/2014, Choco acquired 80% of the outstanding common stock (80,000 shares out of 100,000 shares) of Cake for $16/shares. The market value for Cake's stock was $16/share. (no control premium) Book value Fair value FV-BV Current assets $800,000 $800,000 Land 200,000 300,000 Patented technology (20 years) 400,000 600,000 Equipment (5 years) 600,000 750,000 Total assets Liabilities $(1,000,000) S(1,000,000) Net assets Common stock (100,000 shares outstanding) (200,000) Additional paid-in capital (300,000) Retained earnings (500,000) Total liabilities and stockholders' equity (4) Prepare Consolidation Entry S, A, I, D, E, P for 2015. Entry s Dr. Cr. Entry A Dr. Cr. Entry! Dr. Cr. Entry D Dr. Cr. Entry E Dr. Cr. Entry P Dr. Cr. (5) Prepare consolidated financial statements for December, 31 2015. bri (Body) - 11 - Aa - AaBbCcDd AaBbCcDdA TU. X, XA Normal I No Spac Font Paragraph NCI Choco Company and Cake Company Consolidated Worksheet For Year Ending December 31, 2015 Consolidated Entries Choco Cake Debit Credit ${4.420,000) $(810.000) 2.390,000 210,000 710.000 120.000 Consolidated Totals Equity Method Income Statement Revenues Cost of goods sold Expense 0 (352,000) $15.672,000) S(480,000) (6 Equity in C NI for each comp Consolidated NI NI: NCI NI Choco Statement of R.E. Rendearings, 1/1/15 Net income (above) Dividends declared Retained coming 12/31/15 ${2,380,000) (1.672,000) 500.000 $(3.552,000) $(600,000) (480,000) 150,000 $1930,000) Balance Sheet Current assets $4.650.000 $1,570,000 Investment in Cake 1,560,000 Land 1.200,000 Patented tech Equipment Goodwill 1,500,000 2.600,000 300,000 380,000 550,000 Total assets Liabilities $11,510,000 $2,800,000 $(3.558,000) $(1,370,000) (1,900,000) (200,000) (2,500,000) (300,000) Common stock Addra padina NCI in Cake 1/1 NCI in Cake 12/31 18 Hi cct 473 - Word alpesh pa me what you want to do c. Heading 1 Heading 2 Subtle Em.. Emphasis Title Subtitle Intense E Styles 2 (3.552,000) (930.000) Related eaming 12/01/15 Total Labs and Equity S[11,510,000) $12.800,000) (6) What is the consolidated net income for 2015 for controlling interest ... Nt Choco)? 17) What is the noncontrolling interest's share of Cake's net income for the year ended December 31, 2015 i.e., NI:NCI)? (8) What is the ending balance of the noncontrolling interest in Cake at 12/31/2015? 2. Following is the balance sheet for Cake at 1/1/2014. On 1/1/2014, Choco acquired 80% of the outstanding common stock (80,000 shares out of 100,000 shares) of Cake for $18/shares. The market value for Cake's stock was $16/Share. (control premium) Book value Fair value FV-BV Current assets $800,000 $800,000 Land 200,000 300,000 Patented technology (20 years) 400,000 600,000 Equipment (5 years) 600,000 750,000 Total assets Liabilities S(1,000,000) $(1,000,000) Common stock (100,000 shares outstanding) (200,000) Additional paid in capital (300,000) Retained earnings (500,000) Total liabilities and stockholders' equity Chapter 4. 1. Following is the balance sheet for Cake at 1/1/2014. On 1/1/2014, Choco acquired 80% of the outstanding common stock (80,000 shares out of 100,000 shares) of Cake for $16/shares. The market value for Cake's stock was $16/share. (no control premium) Book value Fair value FV-BV Current assets $800,000 $800,000 Land 200,000 300,000 Patented technology (20 years) 400,000 600,000 Equipment (5 years) 600,000 750,000 Total assets Liabilities $(1,000,000) S(1,000,000) Net assets Common stock (100,000 shares outstanding) (200,000) Additional paid-in capital (300,000) Retained earnings (500,000) Total liabilities and stockholders' equity (4) Prepare Consolidation Entry S, A, I, D, E, P for 2015. Entry s Dr. Cr. Entry A Dr. Cr. Entry! Dr. Cr. Entry D Dr. Cr. Entry E Dr. Cr. Entry P Dr. Cr. (5) Prepare consolidated financial statements for December, 31 2015. bri (Body) - 11 - Aa - AaBbCcDd AaBbCcDdA TU. X, XA Normal I No Spac Font Paragraph NCI Choco Company and Cake Company Consolidated Worksheet For Year Ending December 31, 2015 Consolidated Entries Choco Cake Debit Credit ${4.420,000) $(810.000) 2.390,000 210,000 710.000 120.000 Consolidated Totals Equity Method Income Statement Revenues Cost of goods sold Expense 0 (352,000) $15.672,000) S(480,000) (6 Equity in C NI for each comp Consolidated NI NI: NCI NI Choco Statement of R.E. Rendearings, 1/1/15 Net income (above) Dividends declared Retained coming 12/31/15 ${2,380,000) (1.672,000) 500.000 $(3.552,000) $(600,000) (480,000) 150,000 $1930,000) Balance Sheet Current assets $4.650.000 $1,570,000 Investment in Cake 1,560,000 Land 1.200,000 Patented tech Equipment Goodwill 1,500,000 2.600,000 300,000 380,000 550,000 Total assets Liabilities $11,510,000 $2,800,000 $(3.558,000) $(1,370,000) (1,900,000) (200,000) (2,500,000) (300,000) Common stock Addra padina NCI in Cake 1/1 NCI in Cake 12/31 18 Hi cct 473 - Word alpesh pa me what you want to do c. Heading 1 Heading 2 Subtle Em.. Emphasis Title Subtitle Intense E Styles 2 (3.552,000) (930.000) Related eaming 12/01/15 Total Labs and Equity S[11,510,000) $12.800,000) (6) What is the consolidated net income for 2015 for controlling interest ... Nt Choco)? 17) What is the noncontrolling interest's share of Cake's net income for the year ended December 31, 2015 i.e., NI:NCI)? (8) What is the ending balance of the noncontrolling interest in Cake at 12/31/2015? 2. Following is the balance sheet for Cake at 1/1/2014. On 1/1/2014, Choco acquired 80% of the outstanding common stock (80,000 shares out of 100,000 shares) of Cake for $18/shares. The market value for Cake's stock was $16/Share. (control premium) Book value Fair value FV-BV Current assets $800,000 $800,000 Land 200,000 300,000 Patented technology (20 years) 400,000 600,000 Equipment (5 years) 600,000 750,000 Total assets Liabilities S(1,000,000) $(1,000,000) Common stock (100,000 shares outstanding) (200,000) Additional paid in capital (300,000) Retained earnings (500,000) Total liabilities and stockholders' equity
