Plexi Company purchased 85% of the outstanding common stock of Sesnor Company on January 1, 2009 for $5,700,000.

NOTE: COST METHOD USED BY PARENT REAL Entry

Jan. 1, 2009

Investment in Subsidiary - Sesnor 5,700,000

Cash 5,700,000

Complete the balance sheet. Subsidiary Parent Plexi Coa Sesno Co. Cash R$ 450,000 260,000 750,000 S 450,000 Accounts Receivable R$ Inventory 012/31 875,000 950,000 S 5.700.000 S Investment in Sub-Sesnor Co. Es 3850.000 S 3450.000 Net Plant Assets Land S 250.000 S 1,000,000 other Assets 150,000 250,000 Goodwill Difference Total Assets Liabilities 4,244,500 s 1,150,000 Accounts Payable 998,000 Other Liabilities 325,000 Total Liabilities 5.242,500 1.475,000 Equi Common Stock 250,000 Plexi Co. 100,000 Sesnor Co. APIC 2,400,000 Plexi Co. Sesnor Co. 900,000 S 4,132,500 3885.000 Retained Earnings from above 1/1Noncontrollinginterest 12/31 Noncontrolling Interest S 6782,500 S 4885,000 Total Equity Rs 12,025,000 s 6360000 Total Liabilities and Equity Workpa r (Elimination) Entries Credit Consolidated Complete the balance sheet. Subsidiary Parent Plexi Coa Sesno Co. Cash R$ 450,000 260,000 750,000 S 450,000 Accounts Receivable R$ Inventory 012/31 875,000 950,000 S 5.700.000 S Investment in Sub-Sesnor Co. Es 3850.000 S 3450.000 Net Plant Assets Land S 250.000 S 1,000,000 other Assets 150,000 250,000 Goodwill Difference Total Assets Liabilities 4,244,500 s 1,150,000 Accounts Payable 998,000 Other Liabilities 325,000 Total Liabilities 5.242,500 1.475,000 Equi Common Stock 250,000 Plexi Co. 100,000 Sesnor Co. APIC 2,400,000 Plexi Co. Sesnor Co. 900,000 S 4,132,500 3885.000 Retained Earnings from above 1/1Noncontrollinginterest 12/31 Noncontrolling Interest S 6782,500 S 4885,000 Total Equity Rs 12,025,000 s 6360000 Total Liabilities and Equity Workpa r (Elimination) Entries Credit Consolidated