4-23 - P4-23 Consolidated Balance Sheet $240,000 100%...

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Unformatted text preview: P4-23 Consolidated Balance Sheet $240,000 100% (100,000 +100,000) = 40,000 BV B&E (net) Goodwill Total Balance 12/31/x3 = $40,000 2(4,000) = $32,000 POST CLOSING: a. Eliminating entries: E(1) Common Stock -- Lake Corporation Retained Earnings Differential Investment in Lake Corporation Stock Eliminate investment balance. Buildings and Equipment Accumulated Depreciation Differential Assign purchase differential. 100,000 120,000 32,000 252,000 40,000 8,000 32,000 FMV 100% 40,000 40,000 life 10 Amort. 4,000 E(2) b. Thompson Company and Lake Corporation Consolidated Balance Sheet Workpaper December 31, 20X3 Thompson Co. 30,000 100,000 60,000 500,000 252,000 (1) 32,000 942,000 230,000 80,000 40,000 100,000 200,000 292,000 942,000 460,000 75,000 10,000 70,000 85,000 100,000 120,000 460,000 (2) 8,000 Lake Corp. 20,000 40,000 50,000 350,000 Eliminations Debit Credit Consolidated 50,000 140,000 110,000 890,000 (1)252,000 (2) 32,000 1,190,000 313,000 90,000 110,000 185,000 200,000 292,000 1,190,000 Item Cash Accounts Receivable Land Buildings and Equipment Investment in Lake Corporation Stock Differential Total Debits Accum. Depreciation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Total Credits (2) 40,000 (1)100,000 (1)120,000 292,000 292,000 ...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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