requires strong background in financial accounting, consolidation work papers, parent and subsidiary company mergers and acquisitions, stock acquisitions, etc.

1) Problems are contained in the word document

2) work and answers need to be shown in excel file please 3) Accuracy is absolutely critical and of the up-most importance

1. Read each problem carefully, enter your responses in the provided excel file. 2. Use excel. Use tabs named \"Problem 1 Answer\" to record your final answers to each problem. Use the tabs named \"Problem X Calculations\" as needed to show any work you did that is not reflected in the answers tab Problem 1: Portugal Corporation paid $380,000 for 70% of Spain Corporation's $10 par common stock on December 31, 2016, when Spain Corporation's stockholders' equity was made up of $300,000 of Common Stock, $90,000 of Other Contributed Capital and $60,000 of Retained Earnings. Spain's identifiable assets and liabilities reflected their fair values on December 31, 2016, except for Spain's inventory, which was undervalued by $60,000 and their land, which was overvalued by $15,000. $10,000 of Portugal's Accounts Receivable is due from Spain. Balance sheets for Portugal and Spain immediately after the business combination are below. Cash Accounts Receivable (net) Inventory Land Plant and Equipment (net) Investment in S Total Assets Accounts Payable Other Current Liabilities Common Stock, $10 par Other Contributed Capital Retained Earnings Total Liabilities and Equities Portugal $ 80,000 30,000 185,000 45,000 480,000 380,000 $ 1,200,000 $ 600,000 $ $ 50,000 120,000 600,000 150,000 280,000 $ 1,200,000 Spain $ 30,000 45,000 165,000 120,000 240,000 20,000 130,000 300,000 90,000 60,000 $ 600,000 Required: Complete the consolidated balance sheet workpaper for Portugal Corporation and Spain Corporation. Problem 2: Parlanti Company acquired 75% of the outstanding common stock of Samshield Company on January 2, 2016 for $675,000. At that time, Samshield's equity was comprised of common stock of $700,000, other contributed capital of $90,000, and retained earnings of $13,750. Samshield Company reported net income and dividends for the last two years as follows: Reported net income Dividends distributed 2016 $45,000 40,000 2017 $60,000 80,000 The difference between implied value and the book value of equity acquired was attributed solely to a building, with a remaining 20-year expected life. Required: Prepare journal entries on the books of Parlanti Company for 2016 and 2017 assuming Parlanti uses: A. the cost method to record its investment. B. the complete equity method to record its investment. Problem 3: Preach Company purchased 40% of Sing Corporation on January 1, 2017 for $200,000. Sing Corporation's balance sheet at the time of acquisition was as follows: Sing Cash Accounts Receivable Inventory Land Buildings and Equipment Accumulated Depreciation Total Assets $ 30,000 120,000 80,000 150,000 300,000 (120,000) $ 560,000 Current Liabilities Bonds Payable Common Stock Other Contributed Capital Retained Earnings Total Liabilities and Equities $ 40,000 100,000 300,000 40,000 80,000 $ 560,000 During 2017, Sing Corporation reported net income of $35,000 and paid dividends of $5,000. The fair values of Sing's assets and liabilities were equal to their book values at the date of acquisition, with the exception of Building and Equipment, which had a fair value of $55,000 above book value. All buildings and equipment had a remaining useful life of five years at the time of the acquisition. The amount attributed to goodwill as a result of the acquisition is not impaired. Required: 1) What amount of income will Preach record during 2017 under the cost method of accounting? (Hint: Include dividends received from Sing.) 2) What amount of investment income will Preach record during 2017 under the complete equity method of accounting? (Hint: Do not include dividends received from Sing.) 3) What will be the balance in the investment account on December 31, 2017 under the cost method of accounting? 4) What will be the balance in the investment account on December 31, 2017 under the complete equity method of accounting? Problem 4: Parcival Corporation acquired all of the voting stock of Summer Corporation on January 1, 2016, for $210,000 when Summer had common stock of $140,000 and retained earnings of $24,000. The excess of implied over book value was allocated $9,000 to inventories that were sold in 2016, $12,000 to equipment with a 4-year remaining useful life under the straight-line method, and the remainder to goodwill. Financial statements for Parcival and Summer Corporations at the end of the fiscal year ended December 31, 2017 (two years after acquisition) are provided below. Parcival Corp. has accounted for its investment in Summer using the partial equity method of accounting. Summer's Note Payable relates to funds borrowed from Parcival. Income Statement Sales Equity from Subsidiary Income Cost of Sales Other expenses Net Income Parcival $ 618,000 36,000 450,000 114,000 $ 90,000 Summer $ 180,000 Retained Earnings 1/1 Retained Earnings Add: Net Income Less: Dividends Net Income Parcival $ 82,000 90,000 (60,000) $ 112,000 Summer $ 30,000 36,000 (12,000) $ 54,000 Balance Sheets Cash Inventory Note Receivable Land Equipment and Buildings (net) Investment in Subsidiary Total Assets Parcival $ 32,000 63,000 10,000 33,000 192,000 240,000 $ 570,000 Summer $ 21,000 45,000 Note Payable Other Liabilities Common Stock Retained Earnings Total Liabilities and Equities 90,000 54,000 $ 36,000 18,000 165,000 $ 249,000 $ $ 158,000 300,000 112,000 $ 570,000 10,000 45,000 140,000 54,000 $ 249,000 Required: Complete the consolidated statements workpaper for Parcival Corporation and Summer Corporation for December 31, 2017. Problem 1: Calculations Please use this worksheet to complete any calculations needed to formulate your answer to Problem 1 on the following worksheet. Work performed on this page will only be reviewed when the formal answer on the next tab is not 100% correct. In other words, this space allows you to "show your work." Problem 1: Answer PORTUGAL COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper December 31, 2016 Portugal Spain Company Company Cash $ 40,000 $ 30,000 Accounts Receivable (net) 30,000 45,000 Inventory 185,000 165,000 Land 45,000 120,000 Pland and Equipment (net) 480,000 240,000 Investment in S 380,000 Total $ 1,160,000 $ 50,000 $ 80,000 20,000 130,000 Debit Credit Noncontrolling Interest Consolidated Balances - 600,000 Accounts Payable $ Other Current Liabilities Common Stock: Portugal Company Spain Company Other Contributed Capital: Portugal Company Spain Company Retained Earnings: Portugal Company Spain Company Noncontrolling Interest Total $ Eliminations 600,000 300,000 150,000 90,000 280,000 60,000 1,160,000 $ 600,000 - Problem 2: Calculations Please use this worksheet to complete any calculations needed to formulate your answer to Problem 1 on the following worksheet. Work performed on this page will only be reviewed when the formal answer on the next tab is not 100% correct. In other words, this space allows you to "show your work." Problem 2A: Answer Year Entry Number Accounts Used Debit Credit Problem 2B: Answer Year Entry Number Accounts Used Debit Credit Problem 3: Calculations Please use this worksheet to complete any calculations needed to formulate your answer to Problem 1 on the following worksheet. Work performed on this page will only be reviewed when the formal answer on the next tab is not 100% correct. In other words, this space allows you to "show your work." Problem 3: Answer A. What amount of income will Preach record during 2017 under the cost method of accounting? (Hint: Include dividends received from Sing.) 2017 cost method investment income B. What amount of investment income will Preach record during 2017 under the complete equity method of accounting? (Hint: Do not include dividends received from Sing.) 2017 complete equity method investment income C. What will be the balance in the investment in subsidiary account on December 31, 2017 under the cost method of accounting? 12/31/17 cost method ending balance of Investment in S C. What will be the balance in the investment in subsidiary account on December 31, 2017 under the complete equity method of accounting? 12/31/17 complete equity method balance of Investment in S Problem 4: Calculations Please use this worksheet to complete any calculations needed to formulate your answer to Problem 1 on the following worksheet. Work performed on this page will only be reviewed when the formal answer on the next tab is not 100% correct. In other words, this space allows you to "show your work." 798000 Problem 4: Answer Parcival Corporation and Subsidiary Summer Corporation Consolidated Statements Workpaper For the Year Ended December 31, 2017 Parcival Corp. Income Statement Sales Equity in S Income Total Revenue Cost of Goods Sold Other Expenses Total Cost and Expense Summer Corp. 618,000 36,000 654,000 450,000 114,000 180,000 180,000 90,000 54,000 564,000 144,000 Net Income to Retained Earnings 90,000 36,000 Retained Earnings Statement Retained Earnings 1/1 Parcival Company Eliminating Entries Dr. 82,000 Summer Company Net Income from Above Dividends Declared Parcival Company Summer Company Retained Earnings 12/31 90,000 798,000 36,000 798,000 540,000 168,000 708,000 36,000 90,000 82,000 30,000 36,000 36,000 (60,000) 54,000 30,000 90,000 (60,000) (12,000) (12,000) 112,000 Cr. Consolidated Balances 36,000 130,000 Balance Sheet Cash Inventory 12/31 Note Receivable Land Equipment & Buildings (net) Investment in S Total Note Payable Other Liabilities Common Stock Parcival Company Summer Company Retained Earnings from Above Total 32,000 63,000 10,000 33,000 192,000 240,000 570,000 21,000 45,000 53,000 108,000 10,000 51,000 357,000 240,000 18,000 165,000 249,000 819,000 10,000 10,000 45,000 203,000 112,000 140,000 54,000 36,000 300,000 140,000 130,000 570,000 249,000 36,000 783,000 158,000 300,000