P6-27 Consolidation Following Inventory Transactions

Name Section Date

Elimination Entries DR CR

Bell Company Income Statement Sales FV of Consideration (or BB) Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Troll Corp. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Troll Corp. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Troll Corp. 120,000 (61,000) (15,000) (14,000) 30,000 30,000

Consolidated

225,000 392,500 (100,000) 517,500

100,000 30,000 (10,000) 120,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 120,000 465,000 # Income From Troll Co.

Investment in Troll Co.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations:

NCI Beginning Balances Changes Balances

Parents

P6-28 Consolidation Worksheet

Name Section Date

Elimination Entries DR CR

Crow Corp Income Statement Sales FV of Consideration (or BB) Less: COGS Less: Depreciation Expense Less: Other Expenses Income from West Co. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in West Co. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

West Co. 200,000 (150,000) (30,000) 0 20,000 20,000

Consolidated

225,000 392,500 (100,000) 517,500

100,000 20,000 (5,000) 115,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 115,000 460,000 # Income From West Co.

Investment in West Co.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations: NCI + Parents = Beginning Balances

Changes Balances

P6-30 Intercompany Transfer of Land

Name Section Date

Elimination Entries DR CR

Pine Corp. Income Statement Sales FV of Consideration (or BB) Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Bock Co. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Bock Co. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Bock Co. 125,000 (79,800) (15,000) (5,200) 25,000 25,000

Consolidated

225,000 392,500 (100,000) 517,500

100,000 25,000 (15,000) 110,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 110,000 455,000 # Income From Bock Co.

Investment in Bock Co.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations: NCI + Parents = Beginning Balances

Changes Balances

P6-31 Consolidation Using Financial Statement Data

Name Section Date

Concerto Co. 200,000 (120,000) (15,000) (30,000) 35,000 35,000 Elimination Entries DR CR

Bower Corp. Income Statement Sales FV of Consideration (or BB) Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Concerto Co. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Concerto Co. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Consolidated

225,000 392,500 (100,000) 517,500

100,000 35,000 (20,000) 115,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 115,000 460,000 # Income From Concerto Co.

Investment in Concerto Co.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations: NCI + Parents = Beginning Balances

Changes Balances

P6-32 Intercorporate Transfer of Inventory

Name Section Date

Block Corp. 415,000 15,000 (270,000) (15,000) (75,000) 70,000 70,000 Elimination Entries DR CR

Foster Co. Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Block Corp. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Block Corp. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Consolidated

225,000 392,500 (100,000) 517,500

100,000 70,000 (20,000) 150,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 150,000 495,000 # Income From Block Corp

Investment in Block Corp

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

P6-33 Consolidated Balance Sheet Worksheet

Name Section Date

Elimination Entries DR CR

Pine Corp. Balance Sheet Cash Accounts Receivable and Other Current Receivables 105,000 410,000

Slim Corp.

Consolidated

15,000 120,000

Merchandise Inventory Investment in Slim Corp. Plant and Equipment, Net Goodwill Total Assets Accounts Payable and Other Current Liabilities

920,000 1,257,000 1,000,000 3,692,000 140,000

670,000

400,000 1,205,000 305,000

Common Stock Retained Earnings

500,000 3,052,000

200,000 700,000

NCI in NA of Slim Corp. Total Liabilities & Equity 3,692,000 1,205,000 Income From Slim Co.

Investment in Slim Co.

Book Value Calculations: NCI Ending book value + Net Income - Dividends Ending book value + Parent's % = Common Stock + Retained Earnings

Excess Value (Differential) Calculations: NCI + Parents = Beginning Balances Changes Balances

P6-34 Comprehensive Worksheet Problem

Name Section Date

Elimination Entries DR CR

Randall Corp. Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Sharp Co. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Sharp Co. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Sharp Co. 250,000 30,000 (202,000) (20,000) (18,000) 40,000 40,000

Consolidated

225,000 392,500 (100,000) 517,500

100,000 40,000 (25,000) 115,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 115,000 460,000 # Income From Sharp Co.

Investment in Sharp Co.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations: NCI + Parents =

Beginning Balances Changes Balances

P6-35 Comprehensive Worksheet; Equity Method

Name Section Date

Elimination Entries DR CR

Fran Corp. Income Statement Sales FV of Consideration (or BB) Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Brey Inc. Consolidated Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash Accounts Receivable Inventory Investment in Brey Inc. Land Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 800,000 (200,000) (50,000) (225,000) 67,500 392,500 392,500

Brey Inc. 1,500,000 (870,000) 0 (440,000) 190,000 190,000

Consolidated

225,000 392,500 (100,000) 517,500

100,000 190,000 (40,000) 250,000

158,000 165,000 200,000 319,500 200,000 700,000 (450,000) 1,292,500 75,000 # 200,000 500,000 517,500 # 1,292,500

80,000 65,000 75,000 100,000 200,000 (20,000) 500,000 60,000 85,000 # 200,000 250,000 595,000 # Income From Brey, Inc.

Investment in Brey Inc.

Book Value Calculations: + NCI Ending book value + Net Income - Dividends Ending book value Parent's % = Common + Retained Stock Earnings

Excess Value (Differential) Calculations: NCI + Parents = Beginning Balances

Changes Balances