Introduction

You will use Excel for the consolidation problem in this unit. In some cases, Excel templates are available for the exercises and problems; check the icon for Excel Working Papers to see if a template is available. In some cases, the exercise or problem may request short answer or other documentation; in that case, use Microsoft Word. Excel can also be formatted for any exercise and/or problem.

Due

Submit this assignment bySunday 11:59 pm CT.

Directions

1. Use theChap 03 Working Papers-12ED.xlsxas needed to complete the Chapter 3 Exercise in the textbook:Exercise 3-4.
2. Make sure you can answer the following Chapter Checkup questions after completing all chapter exercises and problems for this chapter.
   1. Can you make the CY1, CY2, EL, and D eliminating entries for a consolidating company?
   2. Do you know how to prepare a Consolidated Income Statement and distribute income to the controlling and noncontrolling interest?
   3. Can you prepare a D&D Excess Schedule?

Exercise 3-4 Common Information Ownership Interest Market Price per Share Number of Shares Cash Total Price Paid 0 Acquired Company's Balance Sheet Before Purchase Book Value Book Value Market Value Life Assets Market Value Liabilities Equity Goodwill Total Assets 0 0 Determination and Distribution of Excess Schedule Company Value Parent Price NCI Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Earnings Total Equity Interest Acquired Book Value Excess of Cost over Book Value Accounts Adjusted Worksheet Distribution Total Liabilities and Equity 0 0 Total 0 Amortization Schedule Account Adjusted Accounts Subject to Amortization Life Annual Amount Current Year Debit Credit Prior Years Total Key Total Amortizations Income Distribution Schedules Subsidiary Internally Generated Net Income Amortizations Total NCI Share Controlling Share Parent Generated Net Internally Income Controlling Share of Subsidiary Total Exercise 3-4 Consolidated Worksheet Trial Balance Parker Sargent Current Assets 102,000 115,000 Investment in Subsidiary 320,000 Depreciable Fixed Assets Accumulated Depreciation Goodwill Current liabilities 400,000 (130,000) 200,000 (40,000) (80,000) Common Stock--Sargent Retained Earnings-Sargent (100,000) (170,000) Common stock - Parker Retained earnings-Parker (300,000) (260,000) Sales (200,000) (100,000) Eliminations Dr Cr Expenses 160,000 Gain on acquisition Subsidiary (dividend) income (12,000) Dividends declared -Sargent Totals Consolidated net income NCI share Controlling share NCI Controlling retained earnings Totals 0 Eliminations Prepare statements below 85,000 10,000 0 Life Consol Net Inc. NCI Control. R.E. Consol. Bal. Sht.