Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Problem Company Solution Dairy $ 137,000 215,000 85,000 403,000 275,400 $1,115,400 $ 79,000 99,000 41,000 236,000 Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity $455,000 $ 63,000 274,400 394,000 384,000 $1,115,400 $ 38,000 141,000 63,000 213,000 $455,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,600. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $13,000 plus $1,200 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PROBLEM COMPANY AND SUBSIDIARY Required: Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and E enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Consolidation Entries Solution Problem Co. Dairy DR CR Consolidated $ $ $ 14,200 $ 137,000 215,000 85,000 403,000 275,400 1,115,400 79,000 99,000 41,000 236,000 201,800 314,000 126,000 639,000 275,400 289,600 | $ $ 455,000 $ 0 $ $ 1,280,800 Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution Dairy Total Assets Liabilities & Equity Current payables Long-term liabilities Common stock Retained earnings NCI in NA of Solution Dairy Total Liabilities & Equity $ $ 63,000 274,400 394,000 384,000 38,000 141,000 63,000 213,000 63,000 213,000 101,000 415,400 394,000 384,000 27,600 1,322,000 27,600 27,600 $ 1,115,400 $ 455,000 $ 276,000 $ $
