Student 11:07 AM Thu Apr 13 < ACC405+-+Consolidation+Project+-+Assigned.xlsx U 2 3 4 B 1 A Advanced Accounting Consolidation Project - Spring 2023 D F 1) On January 1, 2019, Parent Company purchased 90% of Company B for $342,000 in cash The following fair-value allocation was made on the acquisition date: A 7 Consideration Transferred a Fair Value of the 10% Non-Controlling Interest 9 TOTAL Fair Value 10 11 Book Value of Company B 12 Excess Fair Value $342,000 38,000 $380,000 -324,000 $56,000 33. 14 Assign Excess to: 15 Equipment (remaining life 9 years) 16 Goodwill 18,000 38.000 17 18 19 20 21 22 39. During 2021, Parent sold company B inventory for $100,000. The inventory cost the Parent $70,000. At the end of the year, Company B still had $50,000 of the inventory on hand. 2) On January 1, 2020, Parent Company purchased 100% of Company C for $1,765,000 in cash. The following fair-value allocation was made on the acquisition date: 24 Consideration Transferred 25 Book Value of Company C 26 TOTAL Fair Value 37 28 Assign Excess to: 29 Equipment (remaining life 8 years) 30 Goodwill 31 32 33 34 35 36 37 38 39 an 41 42 43 44 45 46 47 48 49 50 51 $1,765,000 -1,650,000 $115,000 56,000 59,000 Also, in January of 2021, Parent sold Company C Equipment with a book value of $440,000 for $500,000. The Equipment has a remaining life of 5 years. 3) The attached worksheets show the financial statements on December 31, 2021. Using Microsoft Excel, prepare the following: a) Prepare a consolidation of the Parent Company and Company B (using formulas to calculate the final balances). b) Prepare a consolidation of the Parent Company and Company C (using formulas to calculate the final balances). c) Prepare a worksheet which adds together all of the separate balances, consolidation adjustments, and final balances of the consolidated entity. Instructions Parent & Consc Parent & Comp Parent & Comp G + t +8 H 90% Student 11:07 AM Thu Apr 13 ACC405+-+Consolidation+Project+-+Assigned.xlsx BIUS NAME Parent & Consolidated Subsidiaries Revenue & Gains 5 Cost of Goods Sold Depreciation 7 Equity in B Income Equity in C Income CA+ 90% = IC H J K L + M E Consolidation Entries Pacent 4.362.000 Subsidiaries Deb Credit NGI Consolidated -2,115,000 -731,200 79.200 203.000 Net Income 10 1,7000 Consolidated Net Income Non-Controlling Interest Controlling Interest in CNI 13 14 Beginning Retained Eamings 3.500.000 18 18 Plus Net Income 1,798.000 17 Less: Dividends 330,000 Ending Retained Earnings 4.968,000 20 21 Cash & AR 23 Investment in Subsidiaries 1.205.000 1,155.000 2.572.900 24 25 28 25 20 29 " Land 21 Property & Equipment 3.500.000 5.964.000 Goodw 246,000 Total Assets 14.642,900 Accounts Payable 150.000 Notes Payable 3816.900 NCI in Sub Common Stock 5,665.000 Retained Eamings 4.968,000 Total Liabes & Equity 14.642.900 44 " " M 12 M Enter text or formula FG Consolidation Entries Company B Debit 4,362.000 360,000 NAME Parent & Company B Revenue & Gains Cost of Goods Sold Depreciation 7 Equity in B Income Equity in C Income Net Income Parent 2.115.000 -731,200 79.200 -209.000 67,000 203.000 1,798,000 90,000 Consolidated Net Income " Non-Controlling Interest 12 Controlling Interest in CN 13 14 Beginning Retained Eamings 3.500.000 278.000 15 Plus: Net Income 1,798,000 90,000 17 Less Dividends 330,000 27,000 18 Ending Retained Eamings 4.968.000 341,000 20 21 Cash & A/R 1,205,000 82.000 Inventory 1,155.000 136,000 23 Investment in Subsidiaries 2.572.900 24 25 26 27 20 30 Land 3,500,000 31 Property & Equipment 5,964,000 328.000 32 33 Goodwil 246,000 34 Total Assets 14.642,900 546.000 Accounts Payable 193,000 37 Notes Payable 3.816.900 55,000 NCI in Sub " Common Stock 5665.000 150.000 42 Retained Earnings 4,968,000 341,000 43 Total Liabilities & Equity 14642 900 546,000 44 47 48 4 50 R 54 " " 4 Credit NCI Consolidated Instructions Parent & Cons Parent & Company B Parent & Comp + 2 Parent & Company C 3 4 Revenue & Gains 5 Cost of Goods Sold Depreciation 7 Equity in B Income Equity in C Income Parent Company C 4,362,000 1,000,000 -2,115,000 630,000 -731,200 -160,000 79.200 203,000 1,798,000 210,000 " 10 11 12 Net Income Consolidated Net Income Non-Controlling Interest Controlling Interest in CNI 13 14 Beginning Retained Earnings 3,500,000 800,000 15 10 Plus: Net Income 1,798,000 210,000 17 Less: Dividends -330.000 -25,000 Ending Retained Earnings 4,968,000 985,000 10 20 21 Cash & AR 1,205,000 205,000 22 Inventory 1,155,000 580,000 23 Investment in Subsidiaries 2,572,900 24 25 20 27 28 29 30 Land 3,500,000 700,000 31 Property & Equipment 5,964,000 1,700,000 32 33 Goodwill 246,000 34 Total Assets 14.642.900 3,185,000 35 36 Accounts Payable 193,000 400,000 37 Notes Payable 3,816,900 800,000 38 NCI in Sub 30 40 41 Common Stock 5,665,000 1,000,000 42 Retained Earnings 4,968,000 985.000 43 Total Liabilities & Equity 14,642,900 3.185.000 44 45 48 47 48 49 50 51 52 53 54 55 57 58 19 60 Consolidation Entries Debit Credit EM NCI Consolidated