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Part II Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. Calculation
| Part II | ||||||||||
| Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. | Calculation of fair value of the net assets of Little Company | Journal Entry for Acquisition | Assume that Big Company decides to acquire 100% of Little Company for $200,000. Prepare the consolidated balance sheet and any supporting worksheets. | |||||||
| Big Company Balance Sheet | Big Company Worksheet | |||||||||
| Assets, Liabilities & Equities | Book Value | Assets, Liabilities & Equities | ||||||||
| Cash | $500,000 | Cash | ||||||||
| AR | $10,000 | AR | ||||||||
| Inventory | $50,000 | Inventory | ||||||||
| Land | $40,000 | Land | ||||||||
| PP&E | $400,000 | PP&E | ||||||||
| Accumulated Depreciation | -$150,000 | Accumulated Depreciation | ||||||||
| Goodwill | ||||||||||
| Patent | $0 | Patent | ||||||||
| Total Assets | $850,000 | Total Assets | ||||||||
| AP | $110,000 | AP | ||||||||
| Common Stock | $395,000 | Common Stock | ||||||||
| Additional Paid In Capital | $300,000 | Additional Paid In Capital | ||||||||
| Retained Earnings | $45,000 | Retained Earnings | ||||||||
| Total Liabilities & Equity | $850,000 | Total Liabilities & Equity | ||||||||
| Little Company Balance Sheet | ||||||||||
| Assets, Liabilities & Equities | Book Value | |||||||||
| Cash | $35,000 | |||||||||
| AR | $10,000 | |||||||||
| Inventory | $65,000 | |||||||||
| Land | $40,000 | |||||||||
| PP&E | $40,000 | |||||||||
| Accumulated Depreciation | -$5,000 | |||||||||
| Patent | $0 | |||||||||
| Total Assets | $185,000 | |||||||||
| AP | $25,000 | |||||||||
| Common Stock | $25,000 | |||||||||
| Additional Paid In Capital | $35,000 | |||||||||
| Retained Earnings | $100,000 | |||||||||
| Total Liabilities & Equity | $185,000 | |||||||||
| Assume that Fair Value of all noncash assets are 25% greater than book value | ||||||||||
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The Safe Hiring Audit The Employers Guide To Implementing A Safe Hiring Program
Authors: Lester S. Rosen
1st Edition
1889150517, 978-1889150512
