' D | Q W & M D A K C Q h| Q c G c Q g M In| + A Q W Q W D E & C Q g| M Ir|+ A + C S C O M * H Q ha h Q h Q B Q D AH+ CA x + X C @ https://myelearning.sta.uwi.edu/pluginfile.php/2467631/mod_resource/content/18/ACCT%203041%20AFA%20Course%20Outline%20%28Summer%202023-2024%2... . . . Draw Q| |A | at | Ask Copilot + 13 of 16 | | 09 Edit with Acrobat ACCT 3041 - ADVANCED FINANCIAL ACCOUNTING Summer Semester 2023-2024 Group Project #1 - 15% On January 1, 2022, Platini Company acquired 80% of the common stock of Maldini Company for $560,000. On this date, Maldini had total owners' equity of $540,000, including retained earnings of $240,000. During 2022, Maldini had net income of $60,000 and paid no dividends. O Any excess of cost over book value is attributable to land, undervalued $10,000, and goodwill. On January 1, 2023, Platini held merchandise acquired from Maldini for $10,000. During 2023, Maldini sold merchandise to Platini for $100,000, of which $20,000 was held by Platini on December 31, 2023. Maldini's usual gross profit on affiliated sales is 40%. On December 31, 2023, Platini still owes Maldini $20,000 for merchandise acquired in December. + On January 1, 2023, Platini sold to Maldini some equipment with a cost of $50,000 and a book value of $20,000. The sales price was $40,000. Maldini is depreciating the equipment over a five-year life, assuming no salvage value and using the straight-line method. As at December 31, 2023, the trial balances of Platini and Maldini are provided on the next page. Required: Which method is being used by Platini to account for its investment in Maldini? Provide 2 reasons to justify your selection. ii) Prepare and complete the worksheet for consolidated financial statements for the year ended December 31, 2023. Prepare all supporting schedules. Round all computations to the nearest dollar. 1 28.C Q Search ENG ~ 4 0 7:57 PM 6/13/2024TO D | Q W & N D A K C Q h| Q c S c Q g M Ir| + A Q W Q W D E & C Q g| M Ir|+ A + C & C O N K H Q h => h Q h Q B Q D AH+ CAX + X C @ https://myelearning.sta.uwi.edu/pluginfile.php/2467631/mod_resource/content/18/ACCT%203041%20AFA%20Course%20Outline%20%28Summer%202023-2024%2... . . . Draw Q| | A |at | Ask Copilot + 14 of 16 2 | 09 Edit with Acrobat Trial Balances: Trial Balance as at December 31, 2023 Platini Maldini Account Titles $ $ Inventory, December 31 100,000 80,000 Other Current Assets 253,000 450,000 O Investment in Subsidiary 560,000 Other Long-Term Investments 50,000 30,000 Land 140,000 70,000 Buildings and Equipment 315,000 400,000 Accumulated Depreciation 208,000) (1 10,000) Other Intangibles 60,000 + Current Liabilities (150,000) (100,000) Bonds Payable (100,000) Premium on Bonds Payable 5,000) Other Long-Term Liabilities (200,000) (150,000) Common Stock (200,000) (100,000) Other Paid-in Capital 100,000) (200,000) Retained Earnings (421,000) (300,000) Net Sales (600,000) (380,000) Cost of Goods Sold 350,000 180,000 Operating Expenses 140,000 100,000 Dividend Income (24,000) Gain on Sale of Equipment (20,000) Dividends Declared 60,000 30,000 TOTALS 0 1 28.C Q Search Ti ENG ~ 4 0 7:57 PM 6/13/2024X AutoSave Off ~ ~ GA AFA Worksheet - Template (4)-1 (1) - Protected.. . Saved to this PC v Search Ryan Mohammed RM X File Home Insert Page Layout Formulas Data Review View Automate Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X A2 vi X fx w1 B C D E F G H J K L M N P Q R S W1 Goodwill on acquisition of Maldini Company Consideration Paid $560,000.00 Net assets acquired Owners equity 540000*80% $432,000.00 $108,000.00 12000 Revaluation of land 10000*80% $ 8,000.00 $ 2,000.00 Goodwill $120,000.00 Unrealized profit on closing profit Margin 40% 2/5 17 Unrealised profit 2/5*20000 $ 8,000.00 18 19 DR Retained earnings (Group) 8000*80% 6,400.00 20 Dr NCI With Share of UPCS 8000*20% $ 1,600.00 21 Cr Closing inventory group $ 8,000.00 22 23 W3 Unrealised profit on sale of fixed asset 24 Or Retained earning (Group) $ 20,000.00 25 Cr. PPE Group $ 20,000.00 26 27 W4 Excess depreciation charged 28 Depreciation 20000/5 $ 4,000.00 29 30 Dr. PPE A/C 4000*80% $ 4,000.00 31 Cr Retained earnings(group) 4000*80% $ 3,200.00 32 Cr NCI 4000*20% 800.00 33 34 Working Papers Solution + Ready + 100% 86F myhp X 5:40 PM Ti ENG Funny Q Search 6/15/2024X AutoSave Off N - GA AFA Worksheet - Template (4)-1 (1) - Protected.. . Saved to this PC v Search Ryan Mohammed RM X File Home Insert Page Layout Formulas Data Review View Automate Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X A71 viX fx Dividend Declared B C D E F G H K L M N P Q R S 38 Consolidated Worksheet 39 Trial Balance Eliminations Consol NCI Control. Consol. 40 Platin Maldini Key Dr Key Cr Net Inc. R.E Bal. Sht. 41 $ $ $ $ $ $ $ $ $ $ 42 Inventory, December 31 100,000 80,000 EI 8,000 172,000 43 Other current asset 253,000 450,000 20,000 683,000 44 Building & equipment 315,000 400,000 4,000 F1S 20,000 699,000 45 Accumulated Depreciation (208,000) (110,000) F1S 0 46 F2S 0 (318,000) 47 Investment in Subsidiary 660,000 CV 0 EL 560,000 48 0 D 0 0 49 Other longterm investment 50,000 30,000 B1 0 80,000 50 Goodwill O D 20,000 120,000 51 Other intagible assets 60,000 60,000 52 Land 140,000 70,000 10,000 0 220,000 53 Current liabilities 150,000) 100,000) 20,000 (230,000) 54 Bonds Payable 100,000) B1 0 (100,000) 55 Premium on Bond payable (5,000) B1 0 (5,000) 56 Other Longterm Liabilities 200,000) (150,000) (350,000) 57 Common Stock--Platini 200,000) 0 0 (200,000) 58 Revaluation reserve- Land 10,000 0 (2,000) (8,000) 59 Other paid in Capital (100,000) 0 (100,000) 60 Retained Earnings--Platini (421,000) F1S 0 CV 0 61 0 B1 40,000 (461,000) 62 Common Stock - Maldini (100,000) EL 80,000 (20,000) 63 Paid in Capital in Excess of Par--Maldin 200,000) EL 160,000 (40,000) 64 Retained Earnings--Maldini (300,000) EL 240,000 B1 0 65 F1S 1,600 NCI 800 (59,200) 66 Sales 600,000) (380,000) IS 100,000 (880,000) 67 Cost of Goods Sold 350,000 180,000 EI 6,400 IS 100,000 436,400 68 Gain on sale of equipment 20,000) 0 20,000 69 Dividend income (24,000) 0 B1 24,000 70 Other Expenses 140,000 100,000 F2S 3,200 236,800 71 | Dividend Declared 60,000 30,000 B1 24,000 66,000 Working Papers Solution + Ready + 100% 86F Q Search Ti myhp Sunny X 5:40 PM ENG 6/15/2024X AutoSave Off - GA AFA Worksheet - Template (4)-1 (1) - Protected.. . Saved to this PC v Search Ryan Mohammed RM X File Home Insert Page Layout Formulas Data Review View Automate Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X A84 v I X fx B C D E F G H J K L M N P Q R S 52 Land 140,000 70,000 10,000 0 220,000 53 Current liabilities (150,000) 100,000) 20,000 (230,000) 54 Bonds Payable (100,000) B1 0 (100,000) 55 Premium on Bond payable 5,000 B1 0 (5,000) 56 Other Longterm Liabilities (200,000) 150,000 (350,000) 57 Common Stock--Platini (200,000) 0 0 (200,000) 58 Revaluation reserve- Land 10,000 0 (2,000) (8,000) 59 Other paid in Capital 100,000) 0 (100,000) 60 Retained Earnings--Platini (421,000) F1S 0 CV 0 61 0 B1 40,000 (461,000) 62 Common Stock - Maldini (100,000) EL 80,000 (20,000) 63 Paid in Capital in Excess of Par--Maldini (200,000) EL 160,000 (40,000) 64 Retained Earnings--Maldini (300,000) EL 240,000 B1 0 65 F1S 1,600 NCI 800 (59,200) 66 Sales (600,000) 380,000) IS 100,000 (880,000) 67 Cost of Goods Sold 350,000 180,000 EI 6,400 IS 100.000 436,400 68 Gain on sale of equipment 20,000) 0 20,000 0 69 Dividend income 24,000) 0 B1 24,000 0 70 Other Expenses 40,000 100,000 F2S 3.200 236,800 71 Dividend Declared 50,000 30,000 B1 24,000 66.000 72 Totals 0 0 786,000 786,000 73 Consolidated net income (140,800) 74 NCI share 28,160 (28,160) 75 Controlling share (112,640 (112,640) 76 NCI (149,360) (149,360) 77 Controlling retained earnings (573,640) (573,640) 78 Totals 79 80 81 82 83 84 Working Papers Solution + Ready + 100% 86F sunny Q Search myhp X ENG 5:40 PM 6/15/2024S AFAWorksheet - Template (4)-1 (1) - Protected... = Saved to this PC v Search Ryan hohammed @ - o X File Home Insert Pagelayout Formulas Data Review View Automate Help 'l\\_} PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X c77 v i Jx v 77 78 |Intercompany Inventory Profit Deferral 79 Subsidiary Parent Parent Parent Subsidiary Subsidiary 80 Amount % Profit Amount % Profit 81 |Beginning 0% 0% 82 |Ending 0% 0% 83 84 |Proof for Bond Elimination (Calculation of Gain):- 85 |Gain remaining at year-end:- 86 Carrying value at 12/31/x6 87 Investment in bonds at 12/31/06 0 88 89 |Gain amortized during the year:- 90 |Interest revenue eliminated 91 |Interest expense eliminated 0 92 |Gain at January 1, 20x6 0 93 94 Income ribution schedules: 95 Subsidiary: DR CR 96 |Internally generated net income 0 97 | Interest Adjustment 98 Realized Gain on Equipment 99 Adjusted Income 100 NCI share 101 Controlling share 102 103 Parent 104 Internally generated net income 105 Controlling share of subsidiary 0 Unrealized Profit in Ending 106 Inventory 107 Total 0 108 4nn o o|o|o o Working Papers Sojution - ] > Ready 9%