Consolidation Working Paper, identifiable Intangibles, Goodwill International Technology inc. (ITI) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2010. Amounts paid are as follows (in millions Cash consideration to the former shareholders of GCC $31 1.200,000 shares of new $1 par common stock issued 35 Registration fees on new stock issued. paid in cash 1.3 Outside legal and advisory services paid in cash Fair value of eaming's contingency The earnings contingency provities for a potential Dayout to the former shareholders af GOC at the end of the third year following acquisition. The balance sheets af toch pampanies immediately prior to the acquisition are as follows. Fair values of GDC's assets and liabilities at the date af acuuisition are also provided. ITI $120 590 Balance Sheets in millions) Book Value Book Value Fair Value Current assets Property, plant and equipment.net Intangible assets 780 Total assets $1,200 Current liabilities Long term liabilities Lomar stock, par Adicional pain capital Hetainer earnings Accumulated other comprehensive income Treasury stock Total liabilities and equity $1200 720 The intangible assets reported above consist of patents and trademarks. GOC also has the following previously unreported intangible assets that meet ASC Topic 805 requirements for asset recognition: Fair Value Advanced technology Customer lists a) Prepare the journal entry or entries It makes to record the acquisition on its own books in millions and enter all dedmal places) General Journal Description Investment in GOC Debit Credit Common stock Additional padan capital Cash (b) Prepare a working paper to consolidate the balance sheets of ITI and GOC at June 30, 2010. Enter answers in millions and enter all decimal places. Remember to use negative signs with your credit balance answers in the Dr (Cr) columns. Consolidation Working Paper Accounts Taken From Books Eliminations GOC Dr (Cr) Consolidated Balances Dr (Cr) Dr (Cr) Debit Credit S (in millions) Current assets Property, plant and equipment, net Investment in GOC Intangible assets Advanced technology Customer lists Goodwill Current liabilities Long-term liabilities Common stock, $1 par Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total: Check Consolidation Working Paper, identifiable Intangibles, Goodwill International Technology inc. (ITI) acquires all of the voting stock of Global Outsourcing Corporation (GOC) on June 30, 2010. Amounts paid are as follows (in millions Cash consideration to the former shareholders of GCC $31 1.200,000 shares of new $1 par common stock issued 35 Registration fees on new stock issued. paid in cash 1.3 Outside legal and advisory services paid in cash Fair value of eaming's contingency The earnings contingency provities for a potential Dayout to the former shareholders af GOC at the end of the third year following acquisition. The balance sheets af toch pampanies immediately prior to the acquisition are as follows. Fair values of GDC's assets and liabilities at the date af acuuisition are also provided. ITI $120 590 Balance Sheets in millions) Book Value Book Value Fair Value Current assets Property, plant and equipment.net Intangible assets 780 Total assets $1,200 Current liabilities Long term liabilities Lomar stock, par Adicional pain capital Hetainer earnings Accumulated other comprehensive income Treasury stock Total liabilities and equity $1200 720 The intangible assets reported above consist of patents and trademarks. GOC also has the following previously unreported intangible assets that meet ASC Topic 805 requirements for asset recognition: Fair Value Advanced technology Customer lists a) Prepare the journal entry or entries It makes to record the acquisition on its own books in millions and enter all dedmal places) General Journal Description Investment in GOC Debit Credit Common stock Additional padan capital Cash (b) Prepare a working paper to consolidate the balance sheets of ITI and GOC at June 30, 2010. Enter answers in millions and enter all decimal places. Remember to use negative signs with your credit balance answers in the Dr (Cr) columns. Consolidation Working Paper Accounts Taken From Books Eliminations GOC Dr (Cr) Consolidated Balances Dr (Cr) Dr (Cr) Debit Credit S (in millions) Current assets Property, plant and equipment, net Investment in GOC Intangible assets Advanced technology Customer lists Goodwill Current liabilities Long-term liabilities Common stock, $1 par Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total: Check
