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I NEED HELP WITH THE CONSOLIDATION WORKSHEET. Consolidation subsequent to date of acquisition Equity method with noncontrolling interest and AAP Assume, on January 1 ,
I NEED HELP WITH THE CONSOLIDATION WORKSHEET.
Consolidation subsequent to date of acquisitionEquity method with noncontrolling interest and AAP
Assume, on January a parent company acquired a interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $ over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following A assets:
A Asset Initial
Fair Value
Useful Life
Property, plant, and equipment $ years
Customer list years
Goodwill
Indefinite
$
of the Goodwill is allocated to the parent. The parent and the subsidiary report the following preconsolidation financial statements at December :
Parent Subsidiary Parent Subsidiary
Income statement: Balance sheet:
Sales $ Assets
Cost of goods sold
Cash $ $
Gross profit Accounts receivable
Equity income Inventory
Operating expenses Equity investment
Net income Property, plant and equipment, net
Statement of retained earnings:
$
$
Beginning retained earnings: Liabilities and stockholders' equity
Net income Current liabilities
Dividends
Longterm liabilities
Ending retained earnings
$
$ Common stock
APIC
Retained earnings
$
$
g Complete the complete the consolidation worksheet.
Note: Use negative signs with your answers in the Consolidated column when appropriate Cost of goods sold, Operating expenses and Dividends
Consolidation Entries
Parent Subsidiary Dr Cr Consolidated
Income Statement:
Sales $ $
Answer
Cost of Goods sold
Answer
Gross profit
Answer
Income loss from subsidiary C
Answer
Answer
Operating expenses
D
Answer
Answer
Net Income
$
$
Answer
Consolidated NI atrib to NCI C
Answer
Answer
Consolidated NI attrib to CI
Answer
Statement of Retained Earnings:
BOY retained earnings $ $E
Answer
Answer
Net income
Answer
Dividends
Answer
C
Answer
EOY retained earnings
$
$
Answer
Balance Sheet:
Cash $ $
Answer
Accounts receivable
Answer
Inventory
Answer
Equity investment
Answer
C
Answer
Answer
E
Answer
A
PPE, net A
Answer
Answer
D
Answer
Customer List A
Answer
Answer
D
Answer
Goodwill A
Answer
Answer
$
$
Answer
Current liabilities $ $
Answer
Longterm liabilities
Answer
Common stock E
Answer
Answer
APIC E
Answer
Answer
Retained earnings
Answer
Noncontrolling interest
Answer
C
Answer
Answer
E
Answer
A
$
$
Answer
Answer
Answer
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