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3 Chapter - Computer Project PECOS COMPANY AND SUARO COMPANY Consolidated Information Worksheet Pecos -1,052,000 821,000 Suaro -427,000 262,000 0 0 0 -165,000 Revenues Operating expenses Amortization of intangibles Goodwill impairment loss Income of Suaro Net income Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1 Net income (above) Dividends paid Retained earnings, 12/31 Cash Receivables Inventory Investment in Suaro Land Equipment (net) Software Other intangibles Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity 0 0 200,000 -201,000 -165,000 35,000 -331,000 95,000 143,000 197,000 0 85,000 100,000 312,000 0 0 932,000 -251,000 -350,000 -331,000 -932,000 195,000 247,000 415,000 341,000 240,100 0 145000 0 -1,537,100 -500,000 Fair Value Allocation Schedule Acquisition-date fair value 1,450,000 Book value 476,000 Excess fair value over book value 974,000 Amortizations and Write-off 2009 2010 -10,000 0 0 Land Brand Name Software IPR&D Goodwill Total 60,000 100,000 300,000 524,000 974,000 0 50,000 300,000 0 350,000 0 50,000 0 0 50,000 Suaro's Retained Earnings Changes 2009 2010 Income 75,000 165,000 Dividends 0 35,000 Asset:...........(Fairbookvalue)..................2009................2010 Land.............$10,000.................................$0....................$0 Brandname...$60,000.................................$0....................$0 Goodwill.........$524,000...............................$0....................$0 IPR&D..........$300,000...............................$300,000.........$0 Software........$100,000...............................$50,000...........$50,000 Total..............$974,000................................$350,000..........$50,000 IPR&Disallwrittenoffforyr2009,$300,00,sincetheprojectwasafailurehasnofutureeconomicbenefit Land&Goodwillarenotamortizedduetoindefiniteusefullife. BrandNameisnotamortizednorwrittenoffsinceisnotinSuaro'sbook. omicbenefit PECOS COMPANY AND SUARO COMPANY Consolidated Worksheet For the Year Ended December 31, 2010 EQUITY METHOD Consolidation Revenues Operating expenses Amortization of intangibles Goodwill impairment loss Income of Suaro Net income Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1 Net income (above) Dividends paid Retained earnings, 12/31 Cash Receivables Inventory Investment in Suaro Pecos -1,052,000 821,000 Suaro -427,000 262,000 (E) 0 0 0 (I) -165,000 0 -201,000 (S) -165,000 35,000 -331,000 95,000 143,000 197,000 0 (D) -115,000 -346,000 -655,000 0 -346,000 200,000 -801,000 195,000 247,000 415,000 1,255,000 Consolidated Worksheet (continued) Land Equipment (net) Software Other intangibles Brand name Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity 341,000 240,100 0 145,000 0 0 2,838,100 -1,537,100 -500,000 -801,000 -2,838,100 85,000 100,000 312,000 (A) 0 0 (A) 0 (A) 932,000 -251,000 -350,000 (S) -331,000 -932,000 Shaded items were provided on the Consolidated Information Worksheet (justtoillustratedivisionofsections) Sections/divisionoftaskforteam(duewk3_wed) (1)Van:NetIncome (2)Cici:RetainedEarning (3)Donna:InvestmentinSuaro (cashinvinsuaro) (4)Erika:Assets (landtotalassets) (5)Kesha:LiabilityandEquity UARO COMPANY orksheet ember 31, 2010 HOD Consolidation Entries Debit Credit 50,000 Consolidated Totals -1,479,000 1,133,000 0 0 0 -346,000 -655,000 0 -346,000 200,000 -801,000 290,000 390,000 612,000 0 115,000 201,000 (D) 35,000 35,000 (S) (A) (I) 551,000 624,000 115,000 (A) 50,000 60,000 524,000 (E) 10,000 50,000 416,000 340,100 312,000 145,000 60,000 524,000 3,089,100 -1,788,100 -500,000 -801,000 -3,089,100 350,000 1,385,000 1,385,000 forteam(duewk3_wed) (cashinvinsuaro) PECOS COMPANY AND SUARO COMPANY Consolidated Worksheet For the Year Ended December 31, 2010 INITIAL VALUE METHOD Consolidation Revenues Operating expenses Amortization of intangibles Goodwill loss impairment Income of Suaro Net income Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1 Net income (above) Dividends paid Retained earnings, 12/31 Cash Receivables Inventory Investment in Suaro Pecos -1,052,000 821,000 Suaro -427,000 262,000 (E) 0 0 0 (I) -165,000 (*C) -201,000 (S) -165,000 35,000 -331,000 95,000 143,000 197,000 0 -35,000 -266,000 -930,000 0 -266,000 200,000 -996,000 195,000 247,000 415,000 1,450,000 Consolidated Worksheet (continued) Land Equipment (net) Software Other intangibles Brand name Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity 341,000 240,100 0 145,000 0 0 3,033,100 -1,537,100 -500,000 -996,000 -3,033,100 85,000 100,000 312,000 (A) 0 0 (A) 0 (A) 932,000 -251,000 -350,000 (S) -331,000 -932,000 Shaded items were provided on the Consolidated Information Worksheet UARO COMPANY orksheet ember 31, 2010 METHOD Consolidation Entries Debit Credit 50,000 Consolidated Totals -1,479,000 1,133,000 0 0 0 -346,000 -655,000 0 -346,000 200,000 -801,000 290,000 390,000 612,000 (S) (A) (*C) 551,000 624,000 275,000 35,000 275,000 201,000 (I) 35,000 (A) 50,000 60,000 524,000 (E) 10,000 50,000 416,000 340,100 312,000 145,000 60,000 524,000 3,089,100 -1,788,100 -500,000 -801,000 -3,089,100 350,000 1,545,000 1,545,000 PECOS COMPANY AND SUARO COMPANY Consolidated Worksheet For the Year Ended December 31, 2010 PARTIAL EQUITY METHOD Consolidation Revenues Operating expenses Amortization of intangibles Goodwill impairment loss Income of Suaro Net income Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1 Net income (above) Dividends paid Retained earnings, 12/31 Cash Receivables Inventory Investment in Suaro Pecos -1,052,000 Suaro Consolidated Worksheet (continued) Land Equipment (net) Software Other intangibles Brand name Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity Shaded items were provided on the Consolidated Information Worksheet UARO COMPANY orksheet ember 31, 2010 METHOD Consolidation Entries Debit Credit Consolidated Totals PECOS COMPANY AND SUARO COMPANY Goodwill Impairment Loss Effects Without Impairment Common shares outstanding Consolidated net income/(loss) Consolidated assets, 1/1/10 Consolidated assets, 12/31/10 Consolidated equity, 1/1/10 Consolidated equity, 12/31/10 Consolidated liabilities Earnings-per-share Return on assets Return on equity Debt-to-equity With Impairment PECOS COMPANY AND SUARO COMPANY Consolidated Worksheet For the Year Ended December 31, 2010 EQUITY METHOD GOODWILL IMPAIRMENT LOSS Consolidation Pecos Revenues Operating expenses Amortization of intangibles Goodwill impairment loss Income of Suaro Net income Retained earningsPecos, 1/1 Retained earningsSuaro, 1/1 Net income (above) Dividends paid Retained earnings, 12/31 Cash Receivables Inventory Investment in Suaro Suaro Consolidated Worksheet (continued) Land Equipment (net) Software Other intangibles Brand name Goodwill Total assets Liabilities Common stock Retained earnings (above) Total liabilities and equity Shaded items were provided on the Consolidated Information Worksheet UARO COMPANY orksheet ember 31, 2010 L IMPAIRMENT LOSS Consolidation Entries Debit Credit Consolidated Totals GroupProjectGradingRubric ACC405 AdvancedAccounting ComputerProjectChapter3,Pages138141 GroupDiscussionsaboutProject Themembersofthegroupidentified,assigned,discussed,andcompletedthegroupproject. CorrectAnswersonEachoftheRequiredWorksheetintheStudentExcelTemplate FairValueAllocationSchedule2009 FairValueAllocationSchedule2010 EquityMethod InitialValueMethod PartialEquityMethod GoodwillImpairment EquityMethodwithGoodwillImpairment GrandTotal IndividualStudentMembersofeachGroupmayreceivelessthanthetotalgroup PointsawardediftheircontributionstothegrouparenotdeemedadaquatebytheInstructor PointsPossible PointsAssigned Comments 10 5 5 20 20 20 10 20 110 0 ... View Full Document

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