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 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 $ 142,000 224,000 71,000 396,000 279,900 $1,112,900 $ 76,000 96,000 56,000 226,000 $ 454,000 $ 64,000 296,900 381,000 371,000 $1,112,900 $ 37,000 136,000 75,000 206,000 $ 454,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,100. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $1,400 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.) X Answer is not complete. Entries PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Consolidation Entries Solution Problem Dairy DR CR Consolidated Co. Assets Cash and receivables $ $ Inventory $ 142,000 X 224,000 71,000 396,000 279,900 $ 1,112,900 76,000 96,000 56,000 226,000 218,000 320,000 127,000 622,000 0 1,287,000 279,900 279,900 $ 454,000 $ 0 $ $ 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 $ $ $ 64,000 296,900 381,000 371,000 37,000 136,000 75,000 206,000 101,000 432,900 381,000 577,000 75,000 $ 1,112,900 $ 454,000 $ 75,000 0 $ 1,491,900 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 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 $ 142,000 224,000 71,000 396,000 279,900 $1,112,900 $ 76,000 96,000 56,000 226,000 $ 454,000 $ 64,000 296,900 381,000 371,000 $1,112,900 $ 37,000 136,000 75,000 206,000 $ 454,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,100. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $1,400 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.) X Answer is not complete. Entries PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Consolidation Entries Solution Problem Dairy DR CR Consolidated Co. Assets Cash and receivables $ $ Inventory $ 142,000 X 224,000 71,000 396,000 279,900 $ 1,112,900 76,000 96,000 56,000 226,000 218,000 320,000 127,000 622,000 0 1,287,000 279,900 279,900 $ 454,000 $ 0 $ $ 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 $ $ $ 64,000 296,900 381,000 371,000 37,000 136,000 75,000 206,000 101,000 432,900 381,000 577,000 75,000 $ 1,112,900 $ 454,000 $ 75,000 0 $ 1,491,900