The first two columns of Exhibit 14.12 present information from the accounting records of Ely Company and Sims Company at the end of the current year. Ely Company acquired 100% of the common stock of Sims Company on January 1 of the current year for $70,000 cash. On this date, the balance in the Retained Earnings account of Sims Company was $42,000. Any excess purchase price relates to goodwill. Ely Company has not recorded a goodwill impairment. The receivables of Ely Company and the liabilities of Sims Company contain an advance from Ely Company to Sims Company of $7,500. Enter the appropriate amounts in the Consolidated column for a consolidated balance sheet of Ely Company and Sims Company on December 31 of the currentyear.

Transcribed Image Text:

Ely Company and Sims Company Information from the Accounting Records on December 31 of the Current Year (Problem 27) EXHIBIT 14.12 Ely Company Sims Company Consolidated ASSETS S 12,000 25,000 78,000 85,000 $200,000 S 5,000 15,000 Receivables Investment in Sims Company 80,000 $100,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities.. .. Common Stock. Retained Earnings. .. 45,000 50,000 105,000 $200,000 40,000 10,000 50,000 $100,000 Total Liabilities and Shareholders' Equity . . . . . . . .