On September 1, Y Company purchased 100 per cent of the voting shares of \(Z\) Company for 960,000 in cash. The separate condensed balance sheets immediately after the purchase follow:

Prepare a work sheet for preparing the consolidated balance sheet immediately after Y Company acquired control of \(\mathrm{Z}\) Company. Assume that any excess cost of the investment in the subsidiary over book value is attributable to goodwill from consolidation.

Transcribed Image Text:

Y Company Z Company Other Assets 2,206,000 1,089,000 Investment in Z Company 960,000 3,166,000 1,089,000 Liabilities 871,000 189,000 Ordinary Shares-1 nominal value 1,000,000 300,000 Retained Earnings 1,295,000 600,000 3,166,000 1,089,000