Wies Calib Com Nk5 A P Gene A- 5 ma fo be Fuente tw D Situation 8 At January 1, 2021: Paris Company paid $280,000 for a 80% interest in Shalby Company In this moment shallby's Stockholders' Equity consisted: Capital Stock $150,000 Retained Earnings $50,000 Book values of Shallby's net assets were equal to their fair value on this date. The following will be presented the accounts of Paris Company and Shelby Company as December 31, 2021 (balance of the adjusting trial balance) 1 Accounts Paris Shalby Cash 58,250 $35,000 Dividends Receivables 8,000 Accounts Receivables 40,000 50,000 s Land 50,000 30,000 Property Plant and Equipment 100,000 150,000 Investment in Shallby SITUATION Core SITUATIONS SITUATION STOND STATIONE Present the income Statement and the tardamine, Statement for como Paris Company Income Statement For the year ended December 31, 2021 Sales Revenues $400.000 Less: Cost of Goods Sold Gross Profit $175.000 Less Operating Expenses (45.000 o F45 C $35,000 E $8,250 8,000 40,000 50,000 100,000 ? 40,750 50,000 30,000 150,000 M Income Statement For the year ended December 31, 2021 Sales Revenues S400,000 tes: Cost of Goods Sold 1225.000) Gross Profit $175,000 Less: Operating Expenses 15.000 Net Income $130.000 D Cash 14 Dividends Receivables 15 Accounts Receivables 16 Land 17 Property, plant and Equipment 1 Investment in Shallby 19 Accounts Payable 20 Dividends Payable 21 Capital Stock 32. Retained Earnings (Bee) Dividends 24 Sales Revenues 25 Cost of Goods Sold 26 Operating Expenses 27 26 20 Instructions (20 points) 150,000 206,500 25,000 400,000 225,000 45,000 35,000 10,000 150,000 50,000 20,000 190,000 125,000 25,000 Paris Company Retained Earnings Statement For the year ended December 31, 2021 Retained Earnings, Beginning an. 1.2021) 5206,500 Plus: Net Income 180,000 $336,500 Less: Dividends Declared 125.000 Retained Earnings, Ending (Dec 31.2021 5311.500 SITUATIONE 1 SITUATIONO SITUATION SITUATION Con SITUATIONE 2009 3 . 0 - O c E : Escribe aqui para buscar om Oy F45 X M 20 Instructions (20 points) Less: Dividends Declared Retained Earnings, Ending (Dec.31.2021) 125.000) $31145.00 10 31 1. You must analyze the data to calculate the implied fair value of Shallby Company and determine if there is many excess, which will be complete for goodwill. 14 15 2. Complete the following table with the controlling interest se and noncontrolling interest Values Controlling Noncong Interest Interest 38 Initial Investment 29 Plus: Net Income 40 Less: Dividend 41 Ending Investment Present the income Statement and the Retained Earnings Statement for Shalby Com Shallby Company Income Statement For the year ended December 31, 2021 Sales Revenues Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Net Income $190,000 1125.000 $65.000 125.000 $40.000 Shalby Company Retained Earnings Statement SITUATION STATIONI het SITUATION SITUATIOND Con SITUATIONS 54 2000 o . Escribe aqu para buscar DOLL Gross Profit Less: Operating Expenses Net Income $65,000 (25,000) $40,000 Shallby Company Retained Earnings Statement For the year ended December 31, 2021 Retained Earnings, Beginning (Jan. 1.2021) $50,000 Plus: Net Income 40,000 $90,000 Less: Dividends Declared (20,000) Retained Earnings, Ending (Dec.31.2021) $70,000 Sheet1 SITUATIONE ATION C SITUATION D ENG 7:41 26/11/20 26C 5 0 . HL X H (30 points) 13. Complete the workpaper to consolidate the balance sheet for the 2. parent company and subsidiary company, Paris and Shalby Company, respectively. Remember that there is a reciprocal account that are the dividends receivables and the dividends payable between both companies 5 Eliminatons or Paris Shallby Accounts Adjustment Company Company Debit Credit 7 Consolidated Balance Sheet Assets Cash 16 Dividends Receivables * Accounts Receivables 1 Land 1 Property, plant and Equipment 14 Investment in Shallby Company draw SATION con SITUATION SITUATIONE the STATION SITUATION 0 AD O Escribe aqui para buscar DAL D 1 3. Complete the workpaper to consolidate the balance sheet for the 2 parent company and subsidiary company, Paris and Shallby Company, 3 respectively. Remember that there is a reciprocal account that are the dividends receivables and the dividend payable between both companies. Eliminatons or Paris Skallby Accounts Compan Adjustment Company 7 Debit Credit 5 COLO sted Balan Slice 2 1 Assets Cach 11 Dividends Receivables ++ Accounts Receivables 12 Land Property. Plant and Equipment * Investment in Shallby Company 13 Goodwill 16 47 Total Assets 11 Lisbilities and Stockholders' Equity 21 Accounts Payable 24 Dividends Payable 22 Capital Stock 23 Retained Earnings 2 Noncontrolling Interest 25 26 Total Lisbilities and Stockholders' Equity 22 20 2 91 4. Prepare the transactions of the eliminations or adjustments that you made in the working paper our the combination of businesses. HERM 31 22 Debit Credit Decription of Accounts