Please calculate the following using EXcel format

Exercise 3 (LO 2) Equity method, first year, eliminations, statements. Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet: Assets Current assets ............. Depreciable foxed assets (net) $100,000 200,000 Liabilities and Equity Current liabilities..... Common stock ($10 por). Relained earnings... Total liabilities and equity-.... $ 50,000 100,000 150,000 $300,000 Total assets............... $300,000 The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker Company uses the simple equity method to record its investment in Sargent Company The following trial balances of the two companies are prepared on December 31, 2015: Sargent 130,000 200,000 120,000) Current Assets ........... Depreciable Fixed Assets ........ Accumulated Depreciation.. Investment in Sargent Company ..... Current Liabilities. Common Stock ($10 par) .... Retained Earnings, January 1, 2015.... Parker 10,000 400,000 (106,000) 316,000 160,000) (300,000) (200,000) (150,000) 110,000 120,000) (40,000) (100,000) (150,000) (100,000) 75,000 Sales ..... Expenses.......... Subsidiary Income.... Dividends Declared. Totals 5,000 0 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet. 3. Prepare the 2015 consolidated income statement and its related income distribution schedules. 4. Prepare the 2015 statement of retained earnings. 5. Prepare the 2015 consolidated balance sheet. Exercise 4 (LO 2) Equity method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 3 for December 31, 2016, are pre- sented as follows: Parker Current Assets... Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities... Common Stock ($10 par) Sargent 115,000 200,000 (40,000) 102,000 400.000 (130,000) 320,000 (80,000) (300,000) (100,000) (continued) Parker 1260,000) (200,000) 160,000 112,000) Sargent (170,000) (100,000) 85,000 Retained Earnings, January 1, 2016. Sales ... Expenses.... Subsidiary Income.... Dividends Declared.... Totals ................ 10,000 Parker Company continues to use the simple equity method. 1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet. 2. Prepare the 2016 consolidated income statement and its related income distribution schedules Common Information Ownership Interest 80% Market Price per Share 45 Number of Shares 18,000 Cash 300,000 Total 1,110,000 Price Paid Acquired Company's Balance Sheet Before Purchase Market Value Book Value Book Value 8,000 Market Value Life Life Liabilities Assets Cash Depreciable Fixed Assets Accumulated Depreciation Investement 102,000 400,000 130,000 320,000 Equity Common S 300,000 Retained E 260,000 Goodwill 75,000 Total Liabilities and Equity Total Assets 1,027,000 0 568,000 0 Determination and Distribution of Excess Schedule Company Value 375,000 Parent Price NCI 300,000 75,000 100,000 Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Eamings Total Equity Interest Acquired Book Value 150,000 250,000 250,000 80% 200,000 250.000 20% 50,000 Excess of Cost over Book Value 25,000 Accounts Adjusted Fixed Assets Goodwill 125,000 100,000 Worksheet Distribution 50,000 10 years 75,000 Total 125,000 Amortization Schedule Annual Amount Current Year Prior Years Total Key Account Adjusted Accounts Subject to Amortization Total Amortizations Debit Credit Income Distribution Schedules Subsidiary Internally Generated Net Income Amortizations Total NCI Share Controlling Share Parent Internally Generated Net Income Controlling Share of Subsidiary Total Eliminations NCI Exercise 3-4 Consolidated Worksheet Trial Balance Parker Current Assets 102,000 Investment in Subsidiary 320,000 Consol et Inc. Control. R.E. Dr | Cr N Sargent 115,000 Consol. Bal. Sht. 217,000 (320,000) 8,000 (180,000) Depreciable Fixed Assets Accumulated Depreciation 400,000 (130,000) 200,000 (40,000) 10,000 216,000 (20.000) Current liabilities (80,000) 75.000 80,000 100.000 9,600 75,000 (80,000) T (256,000) (300,000) Common Stock-Sargent Retained Earings-Sargent (100,000) (170,000) 4.000 136,000 25,000 Common stock - Parker Retained earnings-Parker (300,000) (260,000) 20,000 (58,000) Salas (200,000) (100,000) 1.000 1300.000 Expenses 160.000 85.000 250.000 Gain on acquisition Subsidiary (dividend) income 5,000 9.600 (12,000) 8.000 Dividends declared-Sargent 10,000 50,000 Exercise 3 (LO 2) Equity method, first year, eliminations, statements. Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet: Assets Current assets ............. Depreciable foxed assets (net) $100,000 200,000 Liabilities and Equity Current liabilities..... Common stock ($10 por). Relained earnings... Total liabilities and equity-.... $ 50,000 100,000 150,000 $300,000 Total assets............... $300,000 The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker Company uses the simple equity method to record its investment in Sargent Company The following trial balances of the two companies are prepared on December 31, 2015: Sargent 130,000 200,000 120,000) Current Assets ........... Depreciable Fixed Assets ........ Accumulated Depreciation.. Investment in Sargent Company ..... Current Liabilities. Common Stock ($10 par) .... Retained Earnings, January 1, 2015.... Parker 10,000 400,000 (106,000) 316,000 160,000) (300,000) (200,000) (150,000) 110,000 120,000) (40,000) (100,000) (150,000) (100,000) 75,000 Sales ..... Expenses.......... Subsidiary Income.... Dividends Declared. Totals 5,000 0 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet. 3. Prepare the 2015 consolidated income statement and its related income distribution schedules. 4. Prepare the 2015 statement of retained earnings. 5. Prepare the 2015 consolidated balance sheet. Exercise 4 (LO 2) Equity method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 3 for December 31, 2016, are pre- sented as follows: Parker Current Assets... Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities... Common Stock ($10 par) Sargent 115,000 200,000 (40,000) 102,000 400.000 (130,000) 320,000 (80,000) (300,000) (100,000) (continued) Parker 1260,000) (200,000) 160,000 112,000) Sargent (170,000) (100,000) 85,000 Retained Earnings, January 1, 2016. Sales ... Expenses.... Subsidiary Income.... Dividends Declared.... Totals ................ 10,000 Parker Company continues to use the simple equity method. 1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet. 2. Prepare the 2016 consolidated income statement and its related income distribution schedules Common Information Ownership Interest 80% Market Price per Share 45 Number of Shares 18,000 Cash 300,000 Total 1,110,000 Price Paid Acquired Company's Balance Sheet Before Purchase Market Value Book Value Book Value 8,000 Market Value Life Life Liabilities Assets Cash Depreciable Fixed Assets Accumulated Depreciation Investement 102,000 400,000 130,000 320,000 Equity Common S 300,000 Retained E 260,000 Goodwill 75,000 Total Liabilities and Equity Total Assets 1,027,000 0 568,000 0 Determination and Distribution of Excess Schedule Company Value 375,000 Parent Price NCI 300,000 75,000 100,000 Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Eamings Total Equity Interest Acquired Book Value 150,000 250,000 250,000 80% 200,000 250.000 20% 50,000 Excess of Cost over Book Value 25,000 Accounts Adjusted Fixed Assets Goodwill 125,000 100,000 Worksheet Distribution 50,000 10 years 75,000 Total 125,000 Amortization Schedule Annual Amount Current Year Prior Years Total Key Account Adjusted Accounts Subject to Amortization Total Amortizations Debit Credit Income Distribution Schedules Subsidiary Internally Generated Net Income Amortizations Total NCI Share Controlling Share Parent Internally Generated Net Income Controlling Share of Subsidiary Total Eliminations NCI Exercise 3-4 Consolidated Worksheet Trial Balance Parker Current Assets 102,000 Investment in Subsidiary 320,000 Consol et Inc. Control. R.E. Dr | Cr N Sargent 115,000 Consol. Bal. Sht. 217,000 (320,000) 8,000 (180,000) Depreciable Fixed Assets Accumulated Depreciation 400,000 (130,000) 200,000 (40,000) 10,000 216,000 (20.000) Current liabilities (80,000) 75.000 80,000 100.000 9,600 75,000 (80,000) T (256,000) (300,000) Common Stock-Sargent Retained Earings-Sargent (100,000) (170,000) 4.000 136,000 25,000 Common stock - Parker Retained earnings-Parker (300,000) (260,000) 20,000 (58,000) Salas (200,000) (100,000) 1.000 1300.000 Expenses 160.000 85.000 250.000 Gain on acquisition Subsidiary (dividend) income 5,000 9.600 (12,000) 8.000 Dividends declared-Sargent 10,000 50,000

Question

Please calculate the following using EXcel format

image text in transcribed

Exercise 3 (LO 2) Equity method, first year, eliminations, statements. Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet: Assets Current assets ............. Depreciable foxed assets (net) $100,000 200,000 Liabilities and Equity Current liabilities..... Common stock ($10 por). Relained earnings... Total liabilities and equity-.... $ 50,000 100,000 150,000 $300,000 Total assets............... $300,000 The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker Company uses the simple equity method to record its investment in Sargent Company The following trial balances of the two companies are prepared on December 31, 2015: Sargent 130,000 200,000 120,000) Current Assets ........... Depreciable Fixed Assets ........ Accumulated Depreciation.. Investment in Sargent Company ..... Current Liabilities. Common Stock ($10 par) .... Retained Earnings, January 1, 2015.... Parker 10,000 400,000 (106,000) 316,000 160,000) (300,000) (200,000) (150,000) 110,000 120,000) (40,000) (100,000) (150,000) (100,000) 75,000 Sales ..... Expenses.......... Subsidiary Income.... Dividends Declared. Totals 5,000 0 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet. 3. Prepare the 2015 consolidated income statement and its related income distribution schedules. 4. Prepare the 2015 statement of retained earnings. 5. Prepare the 2015 consolidated balance sheet. Exercise 4 (LO 2) Equity method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 3 for December 31, 2016, are pre- sented as follows: Parker Current Assets... Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities... Common Stock ($10 par) Sargent 115,000 200,000 (40,000) 102,000 400.000 (130,000) 320,000 (80,000) (300,000) (100,000) (continued) Parker 1260,000) (200,000) 160,000 112,000) Sargent (170,000) (100,000) 85,000 Retained Earnings, January 1, 2016. Sales ... Expenses.... Subsidiary Income.... Dividends Declared.... Totals ................ 10,000 Parker Company continues to use the simple equity method. 1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet. 2. Prepare the 2016 consolidated income statement and its related income distribution schedules Common Information Ownership Interest 80% Market Price per Share 45 Number of Shares 18,000 Cash 300,000 Total 1,110,000 Price Paid Acquired Company's Balance Sheet Before Purchase Market Value Book Value Book Value 8,000 Market Value Life Life Liabilities Assets Cash Depreciable Fixed Assets Accumulated Depreciation Investement 102,000 400,000 130,000 320,000 Equity Common S 300,000 Retained E 260,000 Goodwill 75,000 Total Liabilities and Equity Total Assets 1,027,000 0 568,000 0 Determination and Distribution of Excess Schedule Company Value 375,000 Parent Price NCI 300,000 75,000 100,000 Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Eamings Total Equity Interest Acquired Book Value 150,000 250,000 250,000 80% 200,000 250.000 20% 50,000 Excess of Cost over Book Value 25,000 Accounts Adjusted Fixed Assets Goodwill 125,000 100,000 Worksheet Distribution 50,000 10 years 75,000 Total 125,000 Amortization Schedule Annual Amount Current Year Prior Years Total Key Account Adjusted Accounts Subject to Amortization Total Amortizations Debit Credit Income Distribution Schedules Subsidiary Internally Generated Net Income Amortizations Total NCI Share Controlling Share Parent Internally Generated Net Income Controlling Share of Subsidiary Total Eliminations NCI Exercise 3-4 Consolidated Worksheet Trial Balance Parker Current Assets 102,000 Investment in Subsidiary 320,000 Consol et Inc. Control. R.E. Dr | Cr N Sargent 115,000 Consol. Bal. Sht. 217,000 (320,000) 8,000 (180,000) Depreciable Fixed Assets Accumulated Depreciation 400,000 (130,000) 200,000 (40,000) 10,000 216,000 (20.000) Current liabilities (80,000) 75.000 80,000 100.000 9,600 75,000 (80,000) T (256,000) (300,000) Common Stock-Sargent Retained Earings-Sargent (100,000) (170,000) 4.000 136,000 25,000 Common stock - Parker Retained earnings-Parker (300,000) (260,000) 20,000 (58,000) Salas (200,000) (100,000) 1.000 1300.000 Expenses 160.000 85.000 250.000 Gain on acquisition Subsidiary (dividend) income 5,000 9.600 (12,000) 8.000 Dividends declared-Sargent 10,000 50,000 Exercise 3 (LO 2) Equity method, first year, eliminations, statements. Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet: Assets Current assets ............. Depreciable foxed assets (net) $100,000 200,000 Liabilities and Equity Current liabilities..... Common stock ($10 por). Relained earnings... Total liabilities and equity-.... $ 50,000 100,000 150,000 $300,000 Total assets............... $300,000 The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $250,000, and to goodwill. The fixed assets have a 10-year remaining life. Parker Company uses the simple equity method to record its investment in Sargent Company The following trial balances of the two companies are prepared on December 31, 2015: Sargent 130,000 200,000 120,000) Current Assets ........... Depreciable Fixed Assets ........ Accumulated Depreciation.. Investment in Sargent Company ..... Current Liabilities. Common Stock ($10 par) .... Retained Earnings, January 1, 2015.... Parker 10,000 400,000 (106,000) 316,000 160,000) (300,000) (200,000) (150,000) 110,000 120,000) (40,000) (100,000) (150,000) (100,000) 75,000 Sales ..... Expenses.......... Subsidiary Income.... Dividends Declared. Totals 5,000 0 1. Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment. 2. Prepare all the eliminations and adjustments that would be made on the 2015 consolidated worksheet. 3. Prepare the 2015 consolidated income statement and its related income distribution schedules. 4. Prepare the 2015 statement of retained earnings. 5. Prepare the 2015 consolidated balance sheet. Exercise 4 (LO 2) Equity method, second year, eliminations, income statement. The trial balances of Parker and Sargent companies of Exercise 3 for December 31, 2016, are pre- sented as follows: Parker Current Assets... Depreciable Fixed Assets Accumulated Depreciation Investment in Sargent Company Current Liabilities... Common Stock ($10 par) Sargent 115,000 200,000 (40,000) 102,000 400.000 (130,000) 320,000 (80,000) (300,000) (100,000) (continued) Parker 1260,000) (200,000) 160,000 112,000) Sargent (170,000) (100,000) 85,000 Retained Earnings, January 1, 2016. Sales ... Expenses.... Subsidiary Income.... Dividends Declared.... Totals ................ 10,000 Parker Company continues to use the simple equity method. 1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet. 2. Prepare the 2016 consolidated income statement and its related income distribution schedules Common Information Ownership Interest 80% Market Price per Share 45 Number of Shares 18,000 Cash 300,000 Total 1,110,000 Price Paid Acquired Company's Balance Sheet Before Purchase Market Value Book Value Book Value 8,000 Market Value Life Life Liabilities Assets Cash Depreciable Fixed Assets Accumulated Depreciation Investement 102,000 400,000 130,000 320,000 Equity Common S 300,000 Retained E 260,000 Goodwill 75,000 Total Liabilities and Equity Total Assets 1,027,000 0 568,000 0 Determination and Distribution of Excess Schedule Company Value 375,000 Parent Price NCI 300,000 75,000 100,000 Fair Value of Subsidiary Less Book Value of Interest Acquired Common Stock Paid in Excess Retained Eamings Total Equity Interest Acquired Book Value 150,000 250,000 250,000 80% 200,000 250.000 20% 50,000 Excess of Cost over Book Value 25,000 Accounts Adjusted Fixed Assets Goodwill 125,000 100,000 Worksheet Distribution 50,000 10 years 75,000 Total 125,000 Amortization Schedule Annual Amount Current Year Prior Years Total Key Account Adjusted Accounts Subject to Amortization Total Amortizations Debit Credit Income Distribution Schedules Subsidiary Internally Generated Net Income Amortizations Total NCI Share Controlling Share Parent Internally Generated Net Income Controlling Share of Subsidiary Total Eliminations NCI Exercise 3-4 Consolidated Worksheet Trial Balance Parker Current Assets 102,000 Investment in Subsidiary 320,000 Consol et Inc. Control. R.E. Dr | Cr N Sargent 115,000 Consol. Bal. Sht. 217,000 (320,000) 8,000 (180,000) Depreciable Fixed Assets Accumulated Depreciation 400,000 (130,000) 200,000 (40,000) 10,000 216,000 (20.000) Current liabilities (80,000) 75.000 80,000 100.000 9,600 75,000 (80,000) T (256,000) (300,000) Common Stock-Sargent Retained Earings-Sargent (100,000) (170,000) 4.000 136,000 25,000 Common stock - Parker Retained earnings-Parker (300,000) (260,000) 20,000 (58,000) Salas (200,000) (100,000) 1.000 1300.000 Expenses 160.000 85.000 250.000 Gain on acquisition Subsidiary (dividend) income 5,000 9.600 (12,000) 8.000 Dividends declared-Sargent 10,000 50,000