Power Company owns 90 percent of Pleasantdale Dairy's stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:
Power Company Pleasantdale Dairy
Cash & Receivables $ 143,000 $ 71,000
Inventory 211,000 91,000
Land 77,000 42,000
Buildings & Equipment (net) 396,000 221,000
Investment in Pleasantdale Stock 268,200 _____________
Total Assets $ 1,095,200 $ 425,000
Liabilities & Stockholders' Equity
Current Payables $ 77,000 $ 31,000
Long-Term Liabilities 234,200 116,000
Common Stock 397,000 69,000
Retained Earnings 387,000 209,000
Total Liabilities & Stockholders' Equity $1,095,200 $ 425,000
The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,800. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $14,000 plus $1,100 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.
A consolidated balance sheet worksheet is needed. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)
Recently Asked Questions
- How is the community social work process alike or similar to the clinical or direct practice process?
- 1. Briefly describe how management information or decision support systems can assist you when analysing information and identifying trends and patterns.
- The reference standard used in the TLC experiment is the _____. acetone hexane leaf sample spinach hexane-acetone mixture