T1 S2 2010 Pro formas - Exercise 2.1 – Consolidation of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Exercise 2.1 – Consolidation of two balance sheets at the date of acquisition Consolidation worksheet (amounts in thousands): Eagle Ltd Hawk Ltd Adjustments Group Data Debit Credit Shareholders’ equity Share capital $ 800 $ 550 Retained earnings 450 364--------------------- Total shareholders’ equity $1,250 $ 914 ==== ==== ==== Assets Sundry assets $1,531 $1,308 Investment in subsidiary 1,100 Goodwill--------------------- Total assets $2,631 $1,308 Less liabilities Sundry liabilities 981 394 Debentures payable 400--------------------- Net assets $1,250 $ 914 ==== ==== ==== Analysis of investment (amounts in thousands): Equity acquired in net assets of subsidiary Share capital Retained earnings Total equity acquired Cost of investment Goodwill ==== Exercise 2.7 – Consolidation at acquisition and then in post-acquisition period Analysis of investment (amounts in thousands): Equity acquired in net assets of subsidiary Share capital Retained earnings Total equity acquired Cost of investment...
View Full Document

This note was uploaded on 08/28/2011 for the course ACCT 302 taught by Professor Dr.dick during the Spring '11 term at Griffin Technical College.

Page1 / 3

T1 S2 2010 Pro formas - Exercise 2.1 – Consolidation of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online