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The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent
The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Casel Case II P Company S Company P Company S Company Current assets $ 879,000 $ 262,300 $778,000 $ 279,100 Investment in S Company 190,700 190,700 Long-term assets 1,413,600 400,300 1,208,300 400,300 Other assets 89,700 40,200 70,700 69,500 Total $ 2,573,000 $ 702,800 $2,247,700 $ 748.900 Current liabilities $646,400 $ 272,300 $694,400 $ 260,900 Long-term liabilities 842,100 292,300 917,200 271,200 Common stock 605,200 181,800 605,200 181,800 Retained earnings 479,300 (43,600) 30,900 35,000 Total $ 2,573,000 $ 702,800 $ 2,247,700 $ 748,900 (a2) Case II: Prepare a November 30, 2014, consolidated balance sheet workpaper. Assume that any excess of book value over the value implied by purchase price is due to overvalued long-term assets. (Round answers to decimal places, eg. 125.) PCOMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Elleminations Consolidated Noncontrolling Interest Case II Company Company Dr. Balance Current Assets $778,000 5 279,100 $ Investment is Company 190,700 Difference between impled and Book value Long-term Assets 1,208,300 400,300 Other Assets 70.700 69.500 Total Assets 2.247.700 748.900 Current Labies 694,400 260.900 Long-term Liabilitles 917.200 271 200 Common Stock P Company 605.200 s Company 181.800 Retained Earnings Company 30.900 HII I 5 Company 35.000 Noncontrolling interest Total abilities and Equity $ 2.247,700 748.900
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