Problems
1. Prepare the Parent acquisition method computation of differential and goodwill for both acquisitions
2. Prepare the Parent journal entries to record the acquisitions
3. Prepare the consolidation worksheet at completion of the acquisitions
4. Prepare the consolidation/elimination/reclassification entries needed to complete the worksheet
5. Prepare a final consolidated balance sheet

TRIAL BALANCES JANUARY 1, 201 BEFORE ACOUISITION Accounts Receivable 200,000 200,000 200,000 Prepaid insurance nvestment in Gilian nvestment in Elliot i 600,000 e B-iing ese Equipmen Amortization Patents Amortization Trademarks Accounts Payable 50,000 Accrued Expenses 200,000 700,000 200,000 Additional Paid in Capital 490,000 47,000 Retained Earnings 200,000 3,960,000 3,960,000 700,000 700,000 510,000 510,000 On January 1, 2016, John made two acquisitions as Gilian rnc.: John purchased 90% of Gilian inc. for cash of $135,000. The NCI interests were proportional to Cl. Gilian Inc. assets and abilties were stated at fair value EXCEPT inventory (air value $100,000 Eliot Inehn purchased 60 of Elliot Inc. for cash of S240,000. The NC1 interests were proportional to CL Eliot lnc assets and liabilities were stated a lair vaue EXCEPT Eliet patents with fairwlue 470,000, and Bulding fair value of $225,000 TRIAL BALANCES JANUARY 1, 201 BEFORE ACOUISITION Accounts Receivable 200,000 200,000 200,000 Prepaid insurance nvestment in Gilian nvestment in Elliot i 600,000 e B-iing ese Equipmen Amortization Patents Amortization Trademarks Accounts Payable 50,000 Accrued Expenses 200,000 700,000 200,000 Additional Paid in Capital 490,000 47,000 Retained Earnings 200,000 3,960,000 3,960,000 700,000 700,000 510,000 510,000 On January 1, 2016, John made two acquisitions as Gilian rnc.: John purchased 90% of Gilian inc. for cash of $135,000. The NCI interests were proportional to Cl. Gilian Inc. assets and abilties were stated at fair value EXCEPT inventory (air value $100,000 Eliot Inehn purchased 60 of Elliot Inc. for cash of S240,000. The NC1 interests were proportional to CL Eliot lnc assets and liabilities were stated a lair vaue EXCEPT Eliet patents with fairwlue 470,000, and Bulding fair value of $225,000