On January 1 2017 the balance sheets of Potter Co and Hogwarts Co were as follows Potter Hogwarts cash 1,000,000 50,000 equipment 1,000,000 100,000 a d equip 100,000 10,000 Land 2,000,000 20,000 building 3,000,000 100,000 a d building 1,000,000 30,000 patent 50,000 50,000 total assets 5,950,000 280,000 accounts payable 1,000,000 40,000 notes payable 1,000,000 40,000 common stock $5 par 3,000,000 150,000 apic c s 100,000 0 r e 850,000 50,000 On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share At that time the fair market value of Hogwarts assets were equipment 60,000 Land 30,000 building 110,000 patent 40,000 THIS IS A CONTINUATION OF 80 BAL On December 31, 2017 Potter and Hogwarts had the following balance sheets Income statements Potter Hogwarts revenue 5,000,000 80,000 depreciation expense equip 100000 10000 Note the building, equipment and patent of Hogwarts depreciation expense bldg 200,000 10,000 each have a 10 year remaining life with no salvage and amortization exp patent 5000 5000 straight line depreciation is used investment income A 0 income B 55,000 Potter Hogwarts cash 3,000,000 100,000 equipment 1,000,000 100,000 a d equip 200,000 20,000 Land 2,000,000 20,000 building 3,000,000 100,000 a d building 1,200,000 40,000 patent 45,000 45,000 Investment in Hogwarts C total assets D 305,000 accounts payable 1,000,000 40,000 notes payable 1,000,000 40,000 common stock $5 par E 150,000 The only stock transaction Potter had in 2017 was the purchase of Hogwarts apic c s F 0 r e G 75,000 Remember, On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share At that time the fair market value of Hogwarts assets were equipment Land 60,000 building 30,000 patent 110,000 40,000 REQUIRED A) MAKE THE JOURNAL ENTRY POTTER MAKES CONNECTED WITH ITS INVESTMENT IN HOGWARTS (YOU DO NOT HAVE TO MAKE THE ENTRY OF JAN 2 ACQUIRING THE COMPANY) B) FILL IN THE ANSWERS FOR A THROUGH G LET ME KNOW WHAT METHOD (INITIAL VALUE, EQUITY, PARTIAL EQUITY) YOU ARE USING C) MAKE ANY NECESSARY WORKSHEET ENTRIES D) PREPARE A CONSOLIDATED BALANCE SHEET ON 12 31 2017 E) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2017 HINT DON'T FORGET ABOUT DIVIDENDS THAT HOGWARTS AND OR POTTER MAY HAVE PAID

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On January 1 2017 the balance sheets of Potter Co  and Hogwarts Co  were as follows  Potter Hogwarts cash 1,000,000 50,000 equipment 1,000,000 100,000 a d equip 100,000 10,000 Land 2,000,000 20,000 building 3,000,000 100,000 a d building 1,000,000 30,000 patent 50,000 50,000 total assets 5,950,000 280,000 accounts payable 1,000,000 40,000 notes payable 1,000,000 40,000 common stock $5 par 3,000,000 150,000 apic c s 100,000 0 r e 850,000 50,000 On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share  At that time the fair market value of Hogwarts assets were  equipment 60,000 Land 30,000 building 110,000 patent 40,000 THIS IS A CONTINUATION OF 80 BAL On December 31, 2017 Potter and Hogwarts had the following balance sheets Income statements Potter Hogwarts revenue 5,000,000 80,000 depreciation expense equip 100000 10000 Note  the building, equipment and patent of Hogwarts depreciation expense bldg 200,000 10,000 each have a 10 year remaining life with no salvage and amortization exp patent 5000 5000 straight line depreciation is used  investment income A 0 income B 55,000 Potter Hogwarts cash 3,000,000 100,000 equipment 1,000,000 100,000 a d equip 200,000 20,000 Land 2,000,000 20,000 building 3,000,000 100,000 a d building 1,200,000 40,000 patent 45,000 45,000 Investment in Hogwarts C total assets D 305,000 accounts payable 1,000,000 40,000 notes payable 1,000,000 40,000 common stock $5 par E 150,000 The only stock transaction Potter had in 2017 was the purchase of Hogwarts apic c s F 0 r e G 75,000 Remember, On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share  At that time the fair market value of Hogwarts assets were  equipment Land 60,000 building 30,000 patent 110,000 40,000 REQUIRED  A) MAKE THE JOURNAL ENTRY POTTER MAKES CONNECTED WITH ITS INVESTMENT IN HOGWARTS (YOU DO NOT HAVE TO MAKE THE ENTRY OF JAN  2 ACQUIRING THE COMPANY) B) FILL IN THE ANSWERS FOR A THROUGH G LET ME KNOW WHAT METHOD (INITIAL VALUE, EQUITY, PARTIAL EQUITY) YOU ARE USING C) MAKE ANY NECESSARY WORKSHEET ENTRIES D) PREPARE A CONSOLIDATED BALANCE SHEET ON 12 31 2017 E) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2017 HINT  DON'T FORGET ABOUT DIVIDENDS THAT HOGWARTS AND OR POTTER MAY HAVE PAID

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On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows: Potter Hogwarts cash 1,000,000 50,000 equipment 1,000,000 100,000 a/d

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On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows:

		Potter	Hogwarts
cash		1,000,000	50,000
equipment		1,000,000	100,000
a/d equip		100,000	10,000
Land		2,000,000	20,000
building		3,000,000	100,000
a/d building		1,000,000	30,000
patent		50,000	50,000
total assets		5,950,000	280,000

accounts payable		1,000,000	40,000
notes payable		1,000,000	40,000

common stock $5 par		3,000,000	150,000
apic c/s		100,000	0
r/e		850,000	50,000

On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was
selling for $11 per share. At that time the fair market value of Hogwarts assets were:
	equipment	60,000
	Land	30,000
	building	110,000
	patent	40,000

THIS IS A CONTINUATION OF 80%BAL
On December 31, 2017 Potter and Hogwarts had the following balance sheets

	Income statements
		Potter	Hogwarts
revenue		5,000,000	80,000
depreciation expense	equip	100000	10000		Note: the building, equipment and patent of Hogwarts
depreciation expense	bldg	200,000	10,000		each have a 10 year remaining life with no salvage and
amortization exp	patent	5000	5000		straight line depreciation is used.
investment income		A	0
income		B	55,000






		Potter	Hogwarts
cash		3,000,000	100,000
equipment		1,000,000	100,000
a/d equip		200,000	20,000
Land		2,000,000	20,000
building		3,000,000	100,000
a/d building		1,200,000	40,000
patent		45,000	45,000
Investment in Hogwarts		C
total assets		D	305,000

accounts payable		1,000,000	40,000
notes payable		1,000,000	40,000

common stock $5 par		E	150,000	The only stock transaction Potter had in 2017 was the purchase of Hogwarts
apic c/s		F	0
r/e		G	75,000

Remember, On January 2nd Potter acquired all of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was
selling for $11 per share. At that time the fair market value of Hogwarts assets were:	equipment
	Land	60,000
	building	30,000
	patent	110,000
		40,000

REQUIRED:	A) MAKE THE JOURNAL ENTRY POTTER MAKES CONNECTED WITH ITS INVESTMENT IN HOGWARTS (YOU DO NOT HAVE TO MAKE THE ENTRY OF JAN. 2 ACQUIRING THE COMPANY)
	B) FILL IN THE ANSWERS FOR A THROUGH G			LET ME KNOW WHAT METHOD (INITIAL VALUE, EQUITY, PARTIAL EQUITY) YOU ARE USING
	C) MAKE ANY NECESSARY WORKSHEET ENTRIES
	D) PREPARE A CONSOLIDATED BALANCE SHEET ON 12/31/2017
	E) PREPARE A CONSOLIDATED INCOME STATEMENT FOR 2017

	HINT: DON'T FORGET ABOUT DIVIDENDS THAT HOGWARTS AND/OR POTTER MAY HAVE PAID.