I am looking for help with this Advanced Accounting assignment. I have some of it complete but am stuck now. I have attached the instructions along with the template that must be completed. Could you please help me out? I would need this returned to me by Sunday Nov. 6th in the a.m.

Thank you in advance.

Use the following information for Problems 5-4 and 5-5: On January 1, 2014, Pontiac Company acquired an 80% interest in the common stock of Stark Company for $400,000. Stark had the following balance sheet on the date of acquisition: Stark Company Balance Sheet January 1, 2014 Assets Liabilities and Equity Accounts receivable $ 40,000 Accounts payable $ 42,297 Inventory 20,000 Bonds payable 100,000 Land 35,000 Discount on bonds payable (2,297) Buildings 250,000 Common stock ($10 par) 10,000 Accumulated depreciation (50,000) Paid-in capital in excess of par 90,000 Equipment 120,000 Retained earnings 115,000 Accumulated depreciation (60,000) Total assets $355,000 Total liabilities and equity $355,000 Buildings (20-year life) are undervalued by $80,000. Equipment (5-year life) is undervalued by $50,000. Any remaining excess is considered to be goodwill. Stark issued $100,000 of 8%, 10-year bonds for $96,719 on January 1, 2011. Annual interest is paid on December 31. Pontiac purchased the bonds on January 1, 2015, for $104,770. Both companies use the straight-line method to amortize the premium/discount on the bonds. Pontiac and Stark used the following bond amortization schedules: Stark Period Cash Interest 1/2011 Pontiac Balance Period $ 96,719 1/2011 Cash Interest Balance 1/2012 $8,000 $8,328 97,047 1/2012 1/2013 8,000 8,328 97,375 1/2013 1/2014 8,000 8,328 97,703 1/2014 1/2015 8,000 8,328 98,031 1/2015 1/2016 8,000 8,328 98,359 1/2016 $8,000 $7,205 103,975 1/2017 8,000 8,328 98,687 1/2017 8,000 7,205 103,180 1/2018 8,000 8,328 99,015 1/2018 8,000 7,205 102,385 1/2019 8,000 8,328 99,343 1/2019 8,000 7,205 101,590 1/2020 8,000 8,328 99,671 1/2020 8,000 7,205 100,795 1/2021 8,000 8,328 100,000* 1/2021 8,000 7,205 100,000 $104,770 *Adjusted for rounding Problem 5-4 (LO 2) 80%, equity, straight-line bonds purchased this year, inventory profits. Refer to the preceding facts for Pontiac's acquisition of 80% of Starks common stock and the bond transactions. Pontiac uses the simple equity method to account for its investment in Stark. On January 1, 2015, Stack held merchandise acquired from Pontiac for $15,000. During 2015, Pontiac sold $50,000 worth of merchandise to Stark. Stark held $20,000 of this merchandise at December 31, 2015. Stark owed Pontiac $10,000 on December 31 as a result of these intercompany sales. Pontiac has a gross profit rate of 30%. Pontiac and Stark had the trial balances on December 31, 2015, shown on next page. Pontiac Company Stark Company Cash 17,870 32,031 Accounts Receivable 90,000 60,000 Inventory 100,000 30,000 Land 150,000 45,000 Investment in Stark 435,738 Investment in Stark Bonds 103,975 Buildings 500,000 250,000 Pontiac Company Stark Company Accumulated Depreciation (300,000) (70,000) Equipment 200,000 120,000 Accumulated Depreciation (100,000) (84,000) Accounts Payable (55,000) (25,000) Bonds Payable (100,000) Discount on Bonds Payable 1,641 Common Stock (100,000) (10,000) Paid-In Capital in Excess of Par (600,000) (90,000) Retained Earnings, January 1, 2015 (400,000) (145,000) Sales (600,000) (220,000) Cost of Goods Sold 410,000 120,000 Depreciation ExpenseBuildings 30,000 10,000 Depreciation ExpenseEquipment 15,000 12,000 Pontiac Company Other Expenses 109,360 Interest Revenue (7,205) Interest Expense Stark Company 45,000 8,328 Subsidiary Income (19,738) Dividends Declared 20,000 10,000 0 0 Totals Required Prepare the worksheet necessary to produce the consolidated financial statements for Pontiac Company and its subsidiary Stark Company for the year ended December 31, 2015. Include the determination and distribution of excess and income distribution schedules. N ame of Company Being Acquire d Stark Company N ame of A cquiring Company Pontiac Company Date of Acquisition January 1,2014 Date of Acquisition Stark Company Book Market Assets Cash Accounts Receivable 40,000 Inventory 20,000 Current Year Trial Balance Pontiac Company Stark Company Life 17,870 90,000 100,000 Investment in Subsidiary 32,031 60,000 30,000 435,738 Interc om pa ny B ond Inve stme nt Land Buildings Accumulated Depreciation Equipment Accumulated Depreciation 35,000 250,000 (50,000) 120,000 (60,000) 330,000 (50,000) 170,000 (60,000) 355,000 390,000 103,975 150,000 500,000 (300,000) 200,000 (100,000) 20 5 45,000 250,000 (70,000) 120,000 (84,000) Goodwill Total Assets Liabilities Accounts Payable (42,297) Bonds Payable Discount on Bonds Payable (55,000) (25,000) (100,000) 2,297 Total Liabilities Equity Acquired Company Common Stock Pa id-in Ca pital in Exce ss of Par Retained Earnings Equity Acquiring Company Common Stock ### 1,641 (140,000) (10,000) (90,000) (145,000) Pa id-in Ca pital in Exce ss of Par Retained Earnings Total Equity Total Liabilities and Equity (10,000) (100,000) (90,000) (115,000) (215,000) (355,000) (600,000) (400,000) N et A sse ts at Mark et of Acquire d Co. D iv idends Dec la red Acquire d Company 390,000 10,000 D iv idends Dec la red Acquiring Company Sales Cost of Goods Sold Depreciation Expense of Buildings Equipment 20,000 (600,000) 410,000 (220,000) 120,000 30,000 15,000 10,000 12,000 Amortization Expense of Other Expenses Interest Expense Gain on Sale of Assets Interest Revenue Subsidiary Income Total 109,360 45,000 8,328 (7,205) (19,738) Balances Balances Purchase Price Cash Number of shares exchanged Par value of a share of stock Ma rket va lue o f a sh are of sto ck Ma rket va lue of sto ck excha nge d Total purchase price Balances 400,000 Owne rship Inte res t e nte r as . 7 for 7 0% 0.80 Goodwill Applicable to NCI Implie d Value of NCI Inter est 100,000.00 Es tim ated Va lue of N CI inter est if not the implied pr oportional amount--Enter amount or 0 - Me thod of Ac counting for Inve stme nt--Enter C apita l C for C os t or Ca pital E for Equity E Years since Acquisition Interc om pa ny Me rchandis e Informa tion Parent Sales Current Year Sales U npaid Ac count Balance , at yea r end Beginning Inventory Ending Inventory Subsidiar y Sales Parent % 15,000 20,000 30% 30% Subsidiary % 4,500 6,000 0% 0% Interc om pa ny Fixed Asse t Sales By Parent By Sub Ty pe of Fix ed Ass et--Enter in Columns B or C Enter 1 for Land Enter 2 for Buildings Enter 3 for Equipment Profit Amount Life of Ass et--leav e blank for la nd Yea r of Sale (As sume Beginning of Ye ar) Interc om pa ny B ond Informa tion Maturity Value Face Intere st Ra te (E nter .0 8 fo r 8 %,.0 75 for 7.5% ) Original Years to Maturity Year Bon d Issu ed (Assu me Janu ary Issu ance ) Issue Rate Year Bon d Purch ased (Assume Jan uary Purch ase )) Pu rchase R ate (if effe cti ve intere st amo rti zation ) Face Value Purchased Me th od of Am ortizatio n (Enter capi ta l S for Straig ht-lin e an d capi ta l E for Effective Interest in Col umn B.) Issue Price Purchase Price If the b on ds were p urcha sed th e curren t yea r e nter 1. If th e bon ds were p urcha sed in a previ ous yea r e nter 2. Mo nth In te rest Pa id Ja nua ry =1, Dece mbe r=12 ) Value Analysis Company Fa ir Value Parent Price NCI Value 500,000 400,000 100,000 Company Fair Value Fai r Val ue of Net Asse ts Exclud ing Goo dwi ll 390,000 110,000 - Goodwill Gain on Acquisition 312,000 88,000 78,000 22,000 D eter mina tion a nd Distribution of Ex ces s Schedule Im plied C om pa ny Value Parent Price NCI Value 500,000 400,000 100,000 Fair Value of Company Les s Book Value of Inte res t Acquire d Common Stock - Pa id-in Ca pital in Exce ss of Par - Retained Earnings Total Equity Interest Acquired Book Value 0.80 0 Ex ces s of Fair Va lue ove r Book Value 0.20 - 400,000 Elimination Entry Common Stock 100,000 Key EL - Paid-in Capital in Excess of Par Retained Earnings Investment in Subsidiary Adjus tment to Ide ntifiable Accounts Inventory - EL EL EL - Debit (Credit) Key (20,000) D - D (35,000) D 80,000 D 50,000 D - D - D - D 110,000 D 100,000 D (2,297) D - D (400,000) D Life - Land Buildings Equipment Goodwill Bonds Payable Discount on Bonds Payable Investment in Subsidiary Gai n Taken to Acqui ring C o. RE/In come Acquired Company RE Check 20 5 - D (100,000) D (217,297) Amortization Schedule Account Adjustment Annual Amount Inventory Buildings Equipment Current Year Prior Years Total - 4,000 10,000 4,000 10,000 -4000 -10000 14,000 -14000 - - - D isc ount on Bonds Pa yable Total Amortization Entry Cost of Goods Sold Depreciation Expense of Buildings Equipment Debit (Credit) Key A A 4,000 A 10,000 A - A A A A A (2,800) A (11,200) A - A - A - A - A - A - A - A - A - Amortization Expense of Interest Expense Acquired Company RE Acquiring Company RE Inventory Accumulated Depreciation Accumulated Depreciation Discount on Bonds Payable Total Me thod Adjustm ent Schedule Is Adjustment Necessary? Ad justmen t to Investmen t Accoun t Ad justmen t to Re ta ine d Earni ngs Accoun t Debit (Credit) NO Key - CV - CV Date Alignment Schedule Ad justmen t to Sub sidi ary In come Accoun t Ad justmen t to Sub sidi ary Divid en d Acco unt Debit (Credit) Key 19,738 CY (8,000) CY Ad justmen t to Investmen t Accoun t un de r Equ ity Me th od (11,738) CY Intercompany Inventory Profit Deferral and Intercompany Sales and Receivables. Sold by Parent Parent % 15,000 20,000 - Beginning Inventory Ending Inventory Current Year Sales Year End Unpaid Account Balances 0.30 0.30 Parent Profit Sold by Subsidiary Subsidiary % Subsidiary Profit 4,500 4,500 0.00 6,000 6,000 0.00 - - Elimination Entries Debit (Credit) KEY Elimina te Inter company Merc ha ndise Sales Sales Cost of Goods Sold - IS - IS Elimina te Inter company unpaid tra de balance a t y ea r end Accounts Payable Accounts Receivable - IA - IA Elimina te Profit ma de by pa rent on mer chandise in subs idiary 's beginning inve ntory Retained Earnings-Parent Cost of Goods Sold 4,500 BI (4,500) BI Elimina te Profit ma de by pa rent on mer chandise in subs idiary 's e nding inve ntory Cost of Goods Sold Inventory 6,000 EI (6,000) EI Elimina te Profit ma de by subs idiary on m erc ha ndise in pa rents' beginning inve ntory Retained Earnings-Parent - BI Retained Earnings-Subsidiary Cost of Goods Sold - BI - BI Elimina te Profit ma de by subs idiary on m erc ha ndise in pa rents' e nding inve ntory Cost of Goods Sold Inventory Interco mpan y Fixe d Asse t Profit D eferral Original Profit Life of Asset - EI - EI Sale by Parent Sale by Sub Annual Depreciation Adjustment Realized in Prior Years Balance at Start of Year Realized in Current Year Elimination Entry Retained Earnings Parent Gain on Sale of Asset Retained Earnings Parent Debit (Credit) - - - - F - F - F - F - F - F - F - F - Depreciation Expense Depreciation Expense Check Interc om pa ny B ond Eliminations Amortization Table For - Key - F - F - F Retained Earnings Subsidiary Gain on Sale of Asset Stark Company Pe riod (First lin e is Janu ary 1year of issua nce. S econ d lin e is Dece mber 31 - ye ar of issua nce.) Cash/Payable 0 0 1 2 3 4 5 6 7 8 9 Elimination Entries Pontiac Company Interest - Debit (Credit) Bonds Payable Balance Key Balance - - - B 103,975 -1,641 105,616 (1,641) B Retained Earnings Parent In te rest Exp ens e Elimi nated 8,328 21,348 B In te rest R even ue Elimi nated 7,205 (8,328) B Loss Amortized Duri ng the Ye ar Loss (Gain ) o r R E Adju stme nt at Be gin nin g of Pe rio d 85,391 B Retained Earnings Subsidiary Interest Expense Intercompany Bond Investment Check Interest - In vestment in Bo nds at End of Peri od Carryi ng Va lu e at En d of Perio d 7,205 B Loss (Gain) on Bond Retirement (Premiu m) D iscou nt o n Bon ds Payab le Cash/Payable 0 0 1 2 3 4 5 6 7 8 9 Proof: Loss Re main ing at Year End - B Interest Revenue Period #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 1,123 106,739 (103,975) B Balances Interest Payable Interest Receivable - B - B Consolidated Worksheet Trial Balance Pontiac Company Stark Company Key 17,870 32,031 90,000 60,000 100,000 30,000 Cash Accounts Receivable Inventory Investment in Subsidiary Eliminations 435,738 - Debit Credit Key 0 IA (6000) EI 0 EI 0 B (116000) EL Co ntroll ing Con soli dated N et Non C ontrol Re ta ine d In come In te rest Earn ing s C onso lid ated Ba lan ce She et 49,901 150,000 124,000 (92,000) Intercompany Bond Investment Land D CV CY 0 0 0 500,000 250,000 D 80000 (300,000) (70,000) A F F 120,000 D 0 0 0 50000 103,975 150,000 Buildings Accumulated Depreciation Equipment 45,000 200,000 Accumulated Depreciation (100,000) - - - - - (55,000) - Goodwill Accounts Payable Bonds Payable Discount on Bonds Payable - - - Common Stock - Paid-in Capital in Excess of Par Retained Earnings - Common Stock (100,000) Paid-in Capital in Excess of Par Retained Earnings (600,000) (400,000) 0 (84,000) A F F - D - A - D A - D A - D (25,000) IA - B (100,000) D B 1,641 D A B - D A (10,000) EL (90,000) EL (145,000) EL A BI F B - 110000 0 100000 0 0 0 0 0 0 116,000 0 21,348 - 10,000 (220,000) IS 120,000 A 30,000 EI EI 10,000 A 4,000 15,000 12,000 A 10,000 Other Expenses Interest Expense 109,360 - - A - A - A 45,000 8,328 A Subsidiary Income Interest Revenue Gain on Sale of Assets (19,738) (7,205) - - - CY - B - F F 0 D (2297) D 0 A (1641) B 0 D 0 A (2,297) (10,000) (90,000) (110,452) (100000) D (2800) A 0 B 0 D (11200) A 0 CV (321,309) 0 B 2,000 20,000 - A - IS (4,500) BI - BI 0 A 0 F 0 F 0 A 0 F 0 F 0 A (820,000) 531,500 0 A 0 A 19738 7205 - 0 614182 - A (8,328) B 0 CY 0 B (811479) 44,000 37,000 154,360 - - (2,359) (50,781) (210,811) (210,811) (352,090) Stark Company (24,672) 14,000 0 (1,123) (11,795) 2,359 (9,436) Pontiac Company Internally Generated Net Income 110,000 (80,000) - 0 D (53,140) 2,359 50,781 Controlling Retained Earnings Gain/Loss on Bond Retirement Interest Adjustment on Bonds Adjusted (Income) or Loss NCI Share Controlling Share 370,000 0 D 0 A 0 D 0 A 0 D 0 A 0 D B Balances 160,000 830,000 6,000 - Gain on Acquisition of Business Loss (Gain) on Bond Retirement Total Balances Consolidated Net Income NCI Share Controlling Share NCI Income Distr ibution Schedules Intern all y Gen erated Net (In come) or Loss Beginning Inventory Profit Ending Inventory Profit Gain on Asset in Income Realized Gain on Asset Sale Current Year Amortizations (184,000) (8,000) CY 20,000 (600,000) 410,000 Equipment - (370,000) 0 D 0 F 0 F 0 A (600,000) 0 4,500 85,391 Depreciation Expense of Buildings Amortization Expense of (400000) D 0 CV (11738) CY (103975) B (35000) D 0 F 0 F 0 D 0 F 0 F 0 A (100,000) A CV BI BI F F B D ivid end s D ecla red Acqui red Comp any D ivid end s D ecla red Acqui ring Comp any Sales Cost of Goods Sold 0 0 0 0 0 0 0 0 0 (42,845) Gain on Acquisition of Business Beginning Inventory Profit Ending Inventory Profit Gain on Asset in Income Realized Gain on Asset Sale (4,500) 6,000 - Controlling Share of Subsidiary Total (9,436) (50,781) Consolidated Net Income (53,140) (352,090) (197,297)