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Yang okeeee-Chapter-5-Consolidation-of-Less-Than-Wholly-Owned-Subsidiaries
Yang okeeee-Chapter-5-Consolidation-of-Less-Than-Wholly-Owned-Subsidiaries
CHAPTER 5
CONSOLIDATION OF LESS-THAN-WHOLLY OWNED SUBSIDIARIES
ANSWERS TO QUESTIONS
Q5-1 The noncontrolling interest is reported as a separate item in the stockholders equity
section of the balance sheet. Past practice often presented the noncontrolling interest
between long-term liabilities and stockholders equity.
Q5-2 The consolidated balance sheet always includes 100 percent of the subsidiarys
assets and liabilities. When the parent holds less than 100 percent ownership of the
subsidiary, the noncontrolling interests claim on those net assets must be reported.
Q5-3 The income statement portion of the consolidation workpaper is expanded to include a
line for income assigned to the noncontrolling interest. This amount is deducted from
consolidated net income in computing income to the controlling interest. The balance sheet
portion of the workpaper also is expanded to include the claim of the noncontrolling
shareholders on the net assets of the subsidiary.
Q5-4 The balance assigned to the noncontrolling interest is based on the fair value of the
noncontrolling interest at the date of acquisition.
Q5-5 Consolidated retained earnings includes only amounts attributable to the shareholders
of the parent company. Thus, none of the retained earnings is assigned to the noncontrolling
interest.
Q5-6 One hundred percent of the fair value of the subsidiarys assets is included.
Q5-7 The amount of goodwill at the date of acquisition is determined by deducting the fair
value of the net assets of the acquired company from the sum of the fair value of the
consideration given by the acquiring company and the fair value of the noncontrolling
interest.
The resulting goodwill must be apportioned between the controlling and
noncontrolling interest.
Under normal circumstances, goodwill apportioned to the
noncontrolling interest will equal the excess of the fair value of the noncontrolling interest
over its proportionate share of the fair value of the net assets of the acquired company.
Q5-8 Income assigned to the noncontrolling interest normally is a proportionate share of the
net income of the subsidiary.
Q5-9 Income assigned to noncontrolling shareholders is reported as a deduction from
consolidated net income in arriving at income assigned to the parent company shareholders.
Q5-10 Dividends paid to noncontrolling shareholders are eliminated in preparing the
consolidated statement of retained earnings. Only dividends paid to the parent company
shareholders are reported as dividends distributed to shareholders.
5-1
Q5-11 When the parent owns all the shares of a subsidiary (and the subsidiary has no other
publicly traded securities outstanding), it is free to decide whether it wishes to publish
separate statements for the subsidiary. In some cases creditors, regulatory boards, or other
interested parties may insist that such statements be produced. If the parent does not own
all the shares of the subsidiary, the subsidiary normally would be expected to publish
separate financial statements for distribution to the noncontrolling shareholders. In general,
the consolidated statements are published for use by parent company shareholders and are
likely to be of little use to shareholders of the subsidiary.
Q5-12 Other comprehensive income elements reported by the subsidiary must be included
in other comprehensive income in the consolidated financial statement. If the subsidiary is
not wholly owned, income assigned to the noncontrolling interest will include a proportionate
share of the subsidiarys other comprehensive income.
Q5-13 The parents portion of the subsidiarys other comprehensive income is included in
comprehensive income attributable to the controlling interest.
Q5-14 Prior to FASB 141R, the differential was computed as the difference between the fair
value of the consideration given in acquiring ownership of the subsidiary and the parents
portion of the book value of the subsidiarys net assets.
Q5-15 Prior to FASB 141R, goodwill was reported as the difference between the fair value
of the consideration given in acquiring ownership of the subsidiary and the parents portion of
the fair value of the subsidiarys net assets.
Q5-16 Prior to FASB 141R, consolidated net income was computed by deducting income to
noncontrolling interest from consolidated revenues less expenses.
Q5-17* The only effect of a negative balance in retained earnings is the need for a credit to
subsidiary retained earnings, rather than a debit to retained earnings, when the stockholders
equity accounts of the subsidiary and the investment account of the parent are eliminated.
Q5-18* In the period in which the land is sold, the gain or loss recorded by the subsidiary
must be adjusted by the amount of the differential assigned to the land. When the differential
is assigned in the workpaper eliminating entries at the end of the period, a debit will be made
to the gain or loss on sale of land that came to the workpaper from the subsidiarys books.
Q5-19A When the cost method is used, income reported by the parent and the resulting
balance in the investment account do not reflect undistributed earnings of the subsidiary
following the date of acquisition. Because these account balances are different under the
cost and equity methods, a different set of eliminating entries must be used. The major
change in eliminating entries when the cost method is adopted is that a portion of the
subsidiary retained earnings is carried forward to the consolidated total. The carryforward is
needed because the parents retained earnings does not include its portion of undistributed
subsidiary earnings following the acquisition, and therefore is less than consolidated retained
earnings.
5-2
SOLUTIONS TO CASES
C5-1 Consolidation Workpaper Preparation
a. If the parent company is using the equity method, the elimination of the income
recognized by the parent from the subsidiary generally should not be equal to a proportionate
share of the subsidiarys dividends. If the parent has recognized only dividend income from
the subsidiary, it is using the cost method.
b. It should be possible to tell if the preparer has included the parent's share of the
subsidiary's reported income in computing consolidated net income. It is not possible to tell
from looking at the workpaper alone whether or not all the adjustments that should have
been made for amortization of the differential or to eliminate unrealized profits have been
properly treated in computing the consolidated net income.
c. If the parent paid more than its proportionate share of the fair value of the subsidiarys net
assets, the eliminating entries relating to that subsidiary should show amounts assigned to
individual asset accounts for fair value adjustments and to goodwill when the investment
account balance is eliminated and any noncontrolling interest is established in the
workpaper. It should be relatively easy to determine if this has occurred by examining the
consolidation workpaper.
d. If the preparer has made a separate entry in the workpaper to eliminate the change in the
parents investment account during the period, the easiest way to ascertain the parents
subsidiary ownership percentage is to determine the percentage share of the subsidiarys
dividends eliminated in that entry. Another approach might be to divide the total amount of
the parents subsidiary investment account eliminated in the workpaper by the sum of the
total parents investment account eliminated and the total amount of the noncontrolling
interest established in the workpaper through eliminating entries. However, this approach
assumes that the fair value of the consideration given by the parent when acquiring its
subsidiary interest and the fair value of the noncontrolling interest on that date were
proportional, which is usually, by not always, the case.
5-3
Treasurer
Standard Company
FROM:
RE:
, Accounting Staff
Allocation of Consolidated Income to Parent and Noncontrolling
Shareholders
FASB 160 specifies that consolidated net income reflects the income of the entire
consolidated entity and that consolidated net income must be allocated between the
controlling and noncontrolling interests. Earnings per share reported in the consolidated
income statement is based on the income allocated to the controlling interest only.
Consolidated net income increased by $34,000 from 20X4 to 20X5, an increase of 52
percent. However, consolidated net income allocated to the controlling interest increased by
$24,100 from 20X4 to 20X5, an increase of only 38 percent. The increase in the controlling
interests share of consolidated net income did not keep pace with the increase in sales
because nearly all of the sales increase was experienced by Jewel, which has a very low
profit margin. In addition the parent receives only 55 percent of the increased profits of the
subsidiary. Consolidated net income for the two years is computed and allocated as follows:
20X4
$160,000 (a)
(94,000)(c)
$ 66,000
(2,700)(e)
$ 63,300
Consolidated revenues
Operating costs
Consolidated net income
Income to noncontrolling shareholders
Income to controlling shareholders
(a)
(b)
(c)
(d)
(e)
(f)
$100,000 + $60,000
$120,000 + $280,000
($100,000 x .40) + ($60,000 x .90)
($120,000 x .40) + ($280,000 x .90)
($60,000 x .10 x .45)
($280,000 x .10 x .45)
Primary citations:
FASB 160
Secondary source:
ARB 51
5-4
20X5
$400,000 (b)
(300,000)(d)
$100,000
(12,600) (f)
$ 87,400
Financial Vice-President
Rose Corporation
From:
Re:
, Senior Accountant
Pro Rata Consolidation of Joint Venture
This memo is in response to your request for additional information on the desirability of
using pro rata consolidation rather than equity method reporting for Rose Corporations
investment in its joint venture with Krome Company. The equity method is used by most
companies in reporting their investments in corporate joint ventures. [APB Opinion, Par. 16]
While APB 18 provides guidance for joint ventures that have issued common stock, it does
not provide guidance for ownership of noncorporate entities. Interpretation No. 2 to APB 18
suggests that the equity method would be appropriate for unincorporated entities as well.
[APB 18, Int. #2]
Assuming the joint venture with Krome Company is unincorporated, Rose owns an undivided
interest in each asset held by the joint venture and is liable for its share of each of its
liabilities and, under certain circumstances, the entire amount. In this case, it can be argued
pro rata consolidation provides a more accurate picture of Roses assets and liabilities,
although not all agree with this assertion. Pro rata consolidation is generally considered not
acceptable in this country, although it is a widely used industry practice in a few industries
such as oil and gas exploration and production. If the joint venture is incorporated, Rose
does not have a direct claim on the assets of the joint venture and Roses liability is sheltered
by the joint ventures corporate structure. In this case, continued use of the equity method
appears to be appropriate.
Primary citations:
APB 18
APB 18, INT #2
5-5
5-6
5-7
SOLUTIONS TO EXERCISES
E5-1 Multiple-Choice Questions on Consolidation Process
1. d
2. d
3. b
4. d [AICPA Adapted]
4. c
5. c
5-8
20,000
37,000
25,000
Computation of differential
Fair value of the consideration given by Game Corp.
Fair value of noncontrolling interest
Total fair value
Book value of Ambers net assets ($85,000 - $28,000)
Differential
E(2) Inventory
Buildings and Equipment (net)
Differential
$5,000 = $25,000 - $20,000
$20,000 = $70,000 - $50,000
b.
49,200
32,800
$49,200
32,800
$82,000
(57,000)
$25,000
5,000
20,000
25,000
Journal entries used to record transactions, adjust account balances, and close
income and revenue accounts at the end of the period are recorded in the company's
books and change the reported balances. On the other hand, eliminating entries are
entered only in the consolidation workpaper to facilitate the preparation of consolidated
financial statements. As a result, they do not change the balances recorded in the
company's accounts and must be reentered each time a consolidation workpaper is
prepared.
5-9
$140,000
b. Land
$ 60,000
c.
$550,000
$450,000
20,000
(10,000)
70,000
$470,000
117,500
$587,500
(530,000)
$ 57,500
5-10
$117,500
Item
Cash and Receivables
Inventory
Land
Buildings and
Equipment (net)
Investment in
Pleasantdale Stock
Differential
Total Debits
Current Payables
Long-Term Liabilities
Common Stock
Power Company
Pleasantdale Dairy
Retained Earnings
Noncontrolling Interest
Total Credits
PleasPower
antdale
Compan
y
Dairy
130,000
70,000
210,000
90,000
70,000
40,000
390,000
Adjustments and
Eliminations
(a)
Debit
900
(2) 20,000
220,000
270,000
idated
192,000
300,000
130,000
610,000
(1) 20,000
1,070,000
420,000
80,000
200,000
40,000
100,000
(3)
390,000
60,000
220,000
(1) 60,000
(1)220,000
1,070,000
420,000
329,800
400,000
Credit
(3) 8,900
Consol-
(1)270,000
(2) 20,000
8,900
1,232,000
111,100
300,000
400,000
(a)
900
(1) 30,000
329,800
390,900
30,000
1,232,000
900
60,000
220,000
20,000
20,000
5-11
8,900
900
270,000
30,000
20,000
8,900
40,000
85,000
21,000
E(2) Inventory
Buildings and Equipment
Differential
Assign differential.
6,000
15,000
12,500
102,200
43,800
21,000
12,500
E5-6 (continued)
Zenith Corporation and Down Corporation
Consolidated Balance Sheet Workpaper
December 31, 20X4
b.
Item
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Down
Corporation Stock
Differential
Total Debits
Accumulated Depreciation
Accounts Payable
Mortgage Payable
Common Stock
Zenith Corporation
Down Corporation
Retained Earnings
Noncontrolling Interest
Total Credits
c.
Zenith
Corp.
Down
50,300
90,000
130,00
0
60,000
410,00
0
21,000
44,000
75,000
Corp.
30,000
250,00
0
102,20
0
842,50
0
150,00
0
152,50
0
250,00
0
80,000
210,00
0
842,50
0
Eliminations
Debit
(2) 6,000
Credit
(3) 12,500
Consolidated
71,300
121,500
211,000
90,000
675,000
(2) 15,000
(1)102,200
420,00
0
80,000
35,000
(1) 21,000
(2) 21,000
1,168,800
230,000
175,000
(3) 12,500
180,00
0
430,000
80,000
40,000
85,000
(1) 40,000
(1) 85,000
420,00
0
179,500
210,000
(1) 43,800
179,500
43,800
1,168,800
$675,000
(230,000)
Accounts Payable
$ 71,300
121,500
211,000
90,000
445,000
$938,800
$175,000
5-13
Mortgage Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
5-14
430,000
$ 80,000
210,000
$290,000
43,800
333,800
$938,800
E(2) Buildings
Inventories
Goodwill
Differential
Assign differential:
$44,000 = $160,000 - $80,000 - $36,000
120,000
240,000
160,000
80,000
36,000
44,000
390,000
130,000
160,000
Eliminating entry:
E(1) Common Stock Lowtide Builders
Retained Earnings
Investment in Lowtide Builders Stock
Noncontrolling Interest
Eliminate investment balance.
5-15
140,000
10,000
90,000
60,000
E5-8 (continued)
b.
Lowtide
Builder
s
80,000
150,000
30,000
350,000
110,000
500,000
430,000
80,000
510,000
90,000
750,000
460,000
Current Liabilities
Long-Term Debt
Common Stock
Glitter
Lowtide
100,000
400,000
110,000
200,000
Retained Earnings
50,000
10,000
750,000
460,000
Item
Noncontrolling
Interest
Total Credits
c.
200,000
140,000
Eliminations
Debit
Credit
(1) 90,000
Consolidated
1,120,000
210,000
600,000
200,000
(1)140,00
0
(1)
10,000
50,000
(1) 60,000
150,000
150,000
60,000
1,120,000
$ 110,000
500,000
510,000
$1,120,000
Current Liabilities
Long-Term Debt
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
$ 210,000
600,000
5-16
$200,000
50,000
$250,000
60,000
310,000
$1,120,000
$215,000
2.
$40,000
3.
$1,121,000
4.
$701,500
5.
$64,500
6.
7.
$ 791,500
(150,500)
$ 641,000
405,000
$1,046,000
15,000
20,000
40,000
$1,121,000
$205,000
$419,500
5-17
b.
210,000
3,500
14,000
210,000
3,500
14,000
Eliminating entries:
E(1) Income from Subsidiary
Dividends Declared
Investment in Farmstead Company Stock
Eliminate income from subsidiary.
E(2) Income to Noncontrolling Interest
Dividends Declared
Noncontrolling Interest
Assign income to noncontrolling interest.
E(3) Common Stock Farmstead Company
Retained Earnings, January 1
Investment in Farmstead Company Stock
Noncontrolling Interest
Eliminate investment balance.
5-18
14,000
6,000
100,000
200,000
3,500
10,500
1,500
4,500
210,000
90,000
b.
133,500
9,000
22,500
3,000
133,500
9,000
22,500
3,000
19,500
6,500
60,000
90,000
28,000
E(4) Equipment
Differential
Assign beginning differential.
28,000
5-19
4,000
9,000
10,500
3,000
3,500
133,500
44,500
28,000
4,000
b.
$120,000
380,000
$500,000
x
.90
$450,000
36,000
$486,000
54,000
(7,200)
(18,000)
$514,800
E(2)
E(3)
E(4)
Patents
Differential
Assign differential.
E(5)
Amortization Expense
Patents
Amortize differential related to patents.
46,800
5,200
120,000
380,000
40,000
40,000
5-20
8,000
18,000
28,800
2,000
3,200
486,000
54,000
40,000
8,000
E(2)
b.
Buildings
Goodwill
Differential
Assign differential:
$5,500 = $37,500 - $32,000
120,000
80,000
37,500
190,000
47,500
$190,000
47,500
237,500
(200,000)
$ 37,500
32,000
5,500
37,500
5-21
28,800
$40,000
(4,000)
$36,000
x
.80
$28,800
28,800
E5-13 (continued)
E(2)
7,200
E(3)
120,000
80,000
37,500
E(4)
E(5)
Buildings
Goodwill
Differential
Assign beginning differential.
32,000
5,500
Depreciation Expense
Accumulated Depreciation
Amortize differential.
4,000
5-22
7,200
190,000
47,500
37,500
4,000
b.
E(1)
E(2)
c.
$277,500
185,000
$462,500
(400,000)
$ 62,500
(7,500)
(40,000)
$ 15,000
7,500
40,000
15,000
62,500
d.
277,500
185,000
$277,500
24,000
(6,000)
(1,800)
$293,700
(2)
(3)
Cash
Investment in Conway Company Stock
Record dividends from subsidiary.
Investment in Conway Company Stock
Income from Subsidiary
Record equity-method income.
Income from Subsidiary
Investment in Conway Company Stock
Amortize differential:
5-23
6,000
6,000
18,000
18,000
3,900
3,900
5-24
E5-14 (continued)
e.
Eliminating entries:
E(1)
E(2)
E(3)
E(4)
E(5)
Land
Buildings and Equipment
Patents
Differential
Accumulated Depreciation
Assign beginning differential:
$12,000 = $15,000 ($1,500 x 2)
Depreciation Expense
Amortization Expense
Accumulated Depreciation
Patents
Amortize differential.
14,100
9,400
250,000
190,000
49,500
7,500
40,000
12,000
5,000
1,500
5-25
6,000
8,100
4,000
5,400
293,700
195,800
49,500
10,000
5,000
1,500
Eliminating entries:
E(1)
24,000
E(2)
6,000
E(3)
100,000
50,000
5-26
8,000
16,000
2,000
4,000
120,000
30,000
E5-15 (continued)
b.
Stergis
Corp.
Co.
Sales
Income from Subsidiary
200,000
24,000
120,000
Credits
224,000
120,000
Depreciation Expense
Other Expenses
25,000
105,000
15,000
75,000
Debits
(130,000
)
(90,000)
94,000
30,000
230,000
50,000
94,000
30,000
Dividends Declared
324,000
(40,000)
80,000
(10,000)
284,000
70,000
Current Assets
Depreciable Assets
Investment in Stergis
Company Stock
173,000
500,000
105,000
300,000
Debits
809,000
405,000
Accum. Depreciation
Current Liabilities
Long-Term Debt
Common Stock
Proud Corporation
Stergis Company
175,000
50,000
100,000
75,000
40,000
120,000
Eliminations
Debit
100,000
Retained Earnings,
5-27
idated
320,000
(1)
24,000
320,000
40,000
180,000
(220,000
)
100,000
(2)
6,000
30,000
(6,000)
94,000
(3)
50,000
30,000
230,000
(1) 8,000
(2) 2,000
80,000
10,000
94,000
324,000
(40,000
)
284,000
278,000
800,000
136,000
200,000
Credit
Consol-
(1) 16,000
(3)120,000
1,078,000
250,000
90,000
220,000
(3)100,00
0
200,000
from above
Noncontrolling Interest
284,000
70,000
80,000
Credits
809,000
405,000
180,000
5-28
10,000
(2) 4,000
(3) 30,000
284,000
34,000
180,000 1,078,000
E5-15 (continued)
c.
Current Assets
Depreciable Assets
Less: Accumulated Depreciation
Total Assets
Current Liabilities
Long-Term Debt
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
$800,000
(250,000)
$278,000
550,000
$828,000
$ 90,000
220,000
$200,000
284,000
$484,000
34,000
518,000
$828,000
$ 40,000
180,000
$320,000
(220,000)
$100,000
(6,000)
$ 94,000
$230,000
94,000
$324,000
(40,000)
$284,000
Eliminating entries:
E(1)
28,000
E(2)
7,000
E(3)
100,000
70,000
12,000
16,000
3,000
4,000
136,000
34,000
E5-16 (continued)
b.
Corp.
Stergis
Co.
Sales
Income from Subsidiary
230,000
28,000
140,000
Credits
258,000
140,000
Depreciation Expense
Other Expenses
25,000
150,000
15,000
90,000
Debits
(175,000
)
(105,000
)
83,000
35,000
284,000
70,000
83,000
367,000
(50,000)
35,000
105,000
(15,000)
317,000
90,000
Current Assets
Depreciable Assets
Investment in Stergis
Company Stock
235,000
500,000
150,000
300,000
Debits
887,000
450,000
Accum. Depreciation
Current Liabilities
Long-Term Debt
Common Stock
Proud Corporation
Stergis Company
200,000
70,000
100,000
90,000
50,000
120,000
Retained Earnings,
from above
Noncontrolling Interest
Eliminations
Debit
Credit
317,000
370,000
(1)
28,000
370,000
40,000
240,000
(280,000
)
90,000
(2)
7,000
(7,000)
83,000
35,000
(3)
70,000
35,000
284,000
(1) 12,000
(2) 3,000
105,000
15,000
83,000
367,000
(50,000)
317,000
385,000
800,000
152,000
200,000
Consolidated
(1) 16,000
(3)136,000
1,185,000
290,000
120,000
220,000
100,000
(3)100,00
0
90,000
105,000
200,000
15,000
(2) 4,000
317,000
(3) 34,000
Credits
887,000
450,000
205,000
38,000
205,000 1,185,000
b.
c.
20X8
20X9
$120,000
$
140,000
60,000
40,000
(8,000)
$152,000
10,000
$162,000
(8,00
0)
$
192,000
5,00
0
$
197,000
20X8
20X9
$162,000
$
197,000
(10,500)
(14,250)
$151,500
$
182,750
20X8
20X9
$320,000
$
320,000
613,000
504,000
7,500
831,500
151,750
$983,250
11,250
944,250
158,50
0
$1,102,75
0
b.
140,000
(2)
Cash
Investment in Krown Corp. Stock
Record dividends from subsidiary.
17,500
(3)
21,000
(4)
140,000
17,500
21,000
4,200
4,200
Eliminating entries:
E(1)
E(2)
E(3)
E(4)
E(5)
21,000
9,000
4,200
1,800
120,000
80,000
17,500
3,500
7,500
1,500
4,200
1,800
140,000
60,000
b.
133,500
9,000
22,500
3,000
133,500
9,000
22,500
3,000
19,500
7,500
60,000
90,000
21,000
E(4) Equipment
Differential
Assign beginning differential.
21,000
3,000
9,000
10,500
3,000
4,500
133,500
37,500
21,000
3,000
120,000
80,000
30,000
190,000
40,000
Computation of differential
Fair value of consideration given
Underlying book value ($200,000 x .80)
Differential
E(2)
b.
$190,000
(160,000)
$ 30,000
25,600
4,400
30,000
28,800
$40,000
x
.80
$32,000
(3,200)
$28,800
28,800
E5-20 (continued)
E(2)
8,000
E(3)
120,000
80,000
30,000
E(4)
E(5)
25,600
4,400
Depreciation Expense
Accumulated Depreciation
Amortize differential.
3,200
8,000
190,000
40,000
30,000
3,200
Pleasantdale
Item
Cash and Receivables
Compan
y
130,000
Dairy
70,000
Inventory
Land
210,000
70,000
90,000
40,000
Buildings and
Equipment (net)
390,000
220,00
0
Investment in
Pleasantdale Stock
Differential
Total Debits
420,00
0
80,000
40,000
Long-Term Liabilities
200,000
Common Stock
Power Company
Pleasantdale Dairy
100,00
0
400,000
Retained Earnings
390,000
Noncontrolling Interest
Total Credits
Debit
(a)
900
1,070,00
0
60,000
220,00
0
Credit
(3) 8,900
Consolidated
192,000
300,000
128,000
(2)
18,000
610,000
270,000
1,070,00
0
Current Payables
Adjustments and
Eliminations
(1)
18,000
(1)270,000
(2) 18,000
1,230,00
0
(3)
8,900
(1)
60,000
(1)220,00
0
420,00
0
325,800
111,100
300,000
400,000
(a)
900
(1) 28,000
325,800
390,900
28,000
1,230,00
0
900
60,000
220,000
18,000
900
270,000
28,000
E(2) Land
Differential
Assign differential.
E(3) Current Payables
Cash and Receivables
Eliminate intercompany receivable/payable.
18,000
8,900
18,000
8,900
100,000
75,000
27,500
27,500
30,000
138,000
34,500
27,500
135,000
82,350
135,000
82,350
$240,000
$ 5,000
75,000
60,000
50,000
(190,000)
$ 50,000
$ 5,000
75,000
4,000
7,500
$ 91,500
x
.90
$ 82,350
E5-23* (continued)
b.
Elimination entries:
Income from Brinker, Inc.
Investment in Brinker Common Stock
Eliminate income from subsidiary.
52,650
5,850
500,000
100,000
120,000
240,000
5,000
75,000
60,000
50,000
50,000
Depreciation Expense
Interest Expense
Accumulated Depreciation
Discount on Notes Payable
Amortize differential.
4,000
7,500
52,650
5,850
864,000
96,000
240,000
4,000
7,500
Eliminating entries:
E(1)
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
E(2)
b.
10,000
100,000
50,000
10,000
150,000
Sales
Dividend Income
Credits
Depreciation Expense
Other Expenses
Debits
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Corp.
Shaw
Corp
.
200,000 120,000
10,000
210,000 120,000
25,000
15,000
105,000
75,000
(130,00 (90,000
0)
)
80,000
30,000
Eliminations
Debit
Credit
100,000
(1) 10,000
230,000
100,000
330,000
(40,000)
10,000
290,000
(2) 50,000
10,000
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
270,000
70,000
60,000
Current Assets
Deprec. Assets (net)
Investment in Shaw
Corporation Stock
Debits
145,000
325,000
105,000
225,000
150,000
620,000
330,000
Current Liabilities
Long-Term Debt
Common Stock
Blake Corporation
Shaw Corporation
50,000
100,000
40,000
120,000
270,000
250,000
550,000
(2)150,000
800,000
90,000
220,000
100,000
(2)100,00
0
70,000
60,000
5-43
320,000
40,000
180,000
(220,000)
10,000
50,000
30,000
80,000
(10,000
)
Retained Earnings,
from above
320,000
(1) 10,000
230,000
80,000
310,000
(40,000)
200,000
Consolidated
200,000
10,000
290,000
Credits
620,000
330,000
5-44
160,000
160,000
800,000
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
E(2)
b.
15,000
100,000
50,000
15,000
150,000
Shaw
Corp.
300,000
15,000
315,000
25,000
250,000
(275,000
)
40,000
200,000
200,000
15,000
160,000
(175,000
)
25,000
Dividends Declared
270,000
40,000
310,000
(20,000)
Item
Sales
Dividend Income
Credits
Depreciation Expense
Other Expenses
Debits
Income, carry forward
Eliminations
Debit
Credit
Consolidated
500,000
(1) 15,000
500,000
40,000
410,000
(450,000)
15,000
50,000
70,000
25,000
95,000
(15,000)
(2) 50,000
15,000
290,000
50,000
340,000
(20,000)
290,000
80,000
65,000
Current Assets
Deprec. Assets (net)
Investment in Shaw
170,000
300,000
110,000
210,000
Corporation Stock
Debits
150,000
620,000
320,000
Current Liabilities
Long-Term Debt
Common Stock
Blake Corporation
Shaw Corporation
Retained Earnings,
from above
30,000
100,000
20,000
120,000
200,000
290,000
(1)
15,000
320,000
280,000
510,000
(2)150,00
0
790,000
50,000
220,000
100,000
(2)100,000
80,000
65,000
5-45
15,000
200,000
320,000
Credits
620,000
320,000
5-46
165,000
15,000
165,00
0
790,000
Eliminating entries:
E(1)
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
E(2)
E(3)
E(4)
5-47
16,000
6,000
100,000
50,000
4,000
16,000
4,000
2,000
120,000
30,000
4,000
E5-26A (continued)
b.
Knight
Corp.
Co.
Sales
Dividend Income
300,000
16,000
200,000
Credits
316,000
200,000
Depreciation Expense
Other Expenses
25,000
251,000
15,000
155,000
Debits
(276,000
)
(170,000
)
Eliminations
Debit
Credit
500,000
40,000
406,000
(446,000)
54,000
(2) 6,000
40,000
30,000
22,000
268,000
70,000
40,000
30,000
(3) 50,000
(4) 4,000
22,000
Dividends Declared
308,000
(25,000)
100,000
(20,000)
283,000
80,000
Current Assets
Deprec. Assets (net)
Investment in Knight
Company Stock
Debits
183,000
500,000
80,000
300,000
120,000
803,000
380,000
Accum. Depreciation
Accounts Payable
Common Stock
Lintner Corporation
Knight Company
200,000
120,000
90,000
110,000
Retained Earnings,
from above
Noncontrolling Interest
200,000
283,000
(6,000)
48,000
284,000
(1) 16,000
(2) 4,000
76,000
20,000
48,000
332,000
(25,000)
307,000
263,000
800,000
(3)120,000
1,063,000
290,000
230,000
100,000
(3)100,00
0
80,000
76,000
5-48
idated
500,000
(1)
16,000
Consol-
200,000
(2)
20,000
2,000
307,000
Credits
803,000
380,000
5-49
176,000
(3) 30,000
(4) 4,000
36,000
176,000 1,063,000
E5-26A (continued)
c.
Current Assets
Depreciable Assets
Less: Accumulated Depreciation
Total Assets
$263,000
$800,000
(290,000)
Accounts Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
510,000
$773,000
$230,000
$200,000
307,000
$507,000
36,000
543,000
$773,000
$500,000
$ 40,000
406,000
(446,000)
$ 54,000
(6,000)
$ 48,000
$284,000
48,000
$332,000
(25,000)
$307,000
5-50
SOLUTIONS TO PROBLEMS
P5-27 Majority-Owned Subsidiary Acquired at Book Value
a. Eliminating entries:
E(1) Common Stock Darla Corporation
Retained Earnings
Investment in Darla Corporation Stock
Noncontrolling Interest
Eliminate investment balance.
40,000
85,000
12,500
b.
87,500
37,500
12,500
Corp.
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Darla
Corporation Stock
Total Debits
65,000
90,000
130,000
60,000
410,000
21,000
44,000
75,000
30,000
250,000
87,500
842,500
420,000
Accumulated Depreciation
Accounts Payable
Mortgage Payable
Common Stock
Cameron Corporation
Darla Corporation
Retained Earnings
Noncontrolling Interest
Total Credits
150,000
152,500
250,000
80,000
35,000
180,000
(2) 12,500
210,000
40,000
85,000
(1) 40,000
(1) 85,000
842,500
420,000
137,500
Item
80,000
Darla
5-51
Eliminations
Debit
Credit
(2) 12,500
(1) 87,500
Consolidated
86,000
121,500
205,000
90,000
660,000
1,162,500
230,000
175,000
430,000
80,000
(1) 37,500
137,500
210,000
37,500
1,162,500
P5-27 (continued)
c.
$660,000
(230,000)
Accounts Payable
Mortgage Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders equity
Total Liabilities and Stockholders' Equity
$ 86,000
121,500
205,000
90,000
430,000
$932,500
$175,000
430,000
$ 80,000
210,000
$290,000
37,500
327,500
$932,500
40,000
85,000
21,000
E(2) Inventory
Buildings and Equipment
Differential
Assign differential.
6,000
15,000
12,500
5-52
102,200
43,800
21,000
12,500
P5-28 (continued)
Porter Corporation and Darla Corporation
Consolidated Balance Sheet Workpaper
December 31, 20X4
b.
Item
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Darla
Corporation Stock
Differential
Total Debits
Darla
50,300
90,000
130,00
0
60,000
410,00
0
21,000
44,000
75,000
Mortgage Payable
Common Stock
Cameron Corporation
Darla Corporation
Retained Earnings
Noncontrolling Interest
Total Credits
150,00
0
152,50
0
250,00
0
80,000
210,00
0
842,50
0
Eliminations
Corp.
30,000
250,00
0
102,20
0
842,50
0
Accumulated Depreciation
Accounts Payable
c.
Porter
Corp.
Debit
(2) 6,000
Consol-
Credit
(3) 12,500
idated
71,300
121,500
211,000
90,000
675,000
(2) 15,000
(1)102,200
420,00
0
80,000
35,000
(1) 21,000
(2) 21,000
1,168,800
230,000
175,000
(3) 12,500
180,00
0
430,000
80,000
40,000
85,000
(1) 40,000
(1) 85,000
420,00
0
179,500
210,000
(1) 43,800
179,500
43,800
1,168,800
$675,000
(230,000)
$ 71,300
121,500
211,000
90,000
445,000
$938,800
$175,000
5-53
Mortgage Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
5-54
430,000
$ 80,000
210,000
$290,000
43,800
333,800
$938,800
510,000
500,000
10,000
Note: The bonds go directly to the stockholders of Ticken Tie and are not
recorded on the books of Ticken Tie.
b. Eliminating entries:
E(1) Common Stock Ticken Tie Company
Additional Paid-In Capital
Retained Earnings
Differential
Investment in Ticken Tie Stock
Noncontrolling Interest
Eliminate investment balance:
$202,000 = ($510,000 + $170,000) - $478,000
E(2) Inventory
Land
Buildings and Equipment
Patent
Goodwill
Differential
Assign differential.
200,000
130,000
148,000
202,000
4,000
20,000
50,000
40,000
88,000
5-55
6,500
510,000
170,000
202,000
6,500
P5-29 (continued)
c.
Ticken
Tie
Cash
Receivables
12,000
41,000
9,000
31,000
Inventory
Investment in
Ticken Tie Stock
86,000
68,000
Item
Eliminations
Debit
Credit
(2)
4,000
510,000
Land
Buildings and Equipment
Patent
Goodwill
Differential
55,000
960,000
Total Assets
1,664,00
0
828,000
2,000
1,000
411,000
38,000
700,000
10,000
300,000
220,000
29,000
100,000
(3)
200,000
(1)200,000
100,000
103,000
130,000
148,000
(1)130,000
(1)148,000
1,664,00
0
828,000
888,500
50,000
670,000
5-56
(2) 20,000
(2) 50,000
(2) 40,000
(2) 88,000
(1)202,000
(3)
6,500
(1)510,00
0
(2)202,00
0
Consolidated
21,000
65,500
158,000
125,000
1,680,000
40,000
88,000
2,177,500
3,000
631,000
60,500
800,000
10,000
300,000
6,500
(1)170,00
0
888,500
100,000
103,000
170,000
2,177,500
P5-29 (continued)
d.
65,500
(3,000)
$1,680,000
(631,000)
Current Payables
Bonds Payable
Premium on Bonds Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Additional Paid-In Capital
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and
Stockholders' Equity
$ 800,000
10,000
$ 300,000
100,000
103,000
$ 503,000
170,000
21,000
62,500
158,000
125,000
1,049,000
40,000
88,000
$1,543,500
$
60,500
810,000
673,000
$1,543,500
5-57
$15,000
b.
$65,000
c.
Skyler: $24,000
Blue: $70,000
d.
40,000
9,000
$259,000
e.
65 percent
f.
Capital Stock
Retained Earnings
=
=
$120,000
$115,000
5-58
Quill
$ 90,000
24,500
$114,500
North
$35,000
Quill
$290,000
114,500
(30,000)
$374,500
North
$40,000
35,000
(10,000)
$65,000
$35,000
d. Consolidated retained earnings at December 31, 20X9, is equal to the $374,500 retained
earnings balance reported by Quill.
e. When the cost method is used, the parent's proportionate share of the increase in retained
earnings of the subsidiary subsequent to acquisition is not included in the parent's retained
earnings. Thus, this amount must be added to the total retained earnings reported by the
parent in arriving at consolidated retained earnings.
5-59
E(2)
4,125
E(3)
60,000
40,000
28,000
20,000
8,000
E(4)
16,500
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential related to buildings
and equipment:
$2,000 = $20,000 / 10 years
2,000
E(6)
5,500
5-60
12,000
4,500
4,000
125
96,000
32,000
28,000
2,000
5,500
P5-32 (continued)
b.
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Other Expenses
Goodwill Impairment Loss
Debits
Power
Corp.
Best
Co.
260,000
16,500
276,500
125,000
42,000
25,000
12,000
13,500
180,000
(217,500
)
(156,000
)
59,000
24,000
Dividends Declared
102,000
59,000
161,000
(30,000)
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Best
Company Stock
Differential
Goodwill
Debits
180,000
110,000
27,000
10,000
4,000
5,000
Eliminations
Debit
Credit
Consol
idated
440,000
(1) 16,500
440,000
235,000
69,000
37,000
16,000
18,500
5,500
(381,000)
(5) 2,000
(6) 5,500
59,000
(2) 4,125
28,125
(4,125)
54,875
40,000
24,000
64,000
(16,000)
(3) 40,000
28,125
102,000
54,875
156,875
131,000
48,000
68,125
47,500
70,000
90,000
30,000
350,000
21,000
12,000
25,000
15,000
150,000
(1) 12,000
(2) 4,000
223,000
5-61
(3) 28,000
(4) 8,000
126,875
68,500
82,000
115,000
45,000
520,000
(4) 20,000
100,500
688,000
16,000
(30,000)
(1) 4,500
(3) 96,000
(4) 28,000
(6) 5,500
2,500
833,000
P5-32 (continued)
Power
Corp.
Best
Co.
Accum. Depreciation
Accounts Payable
Wages Payable
Notes Payable
Common Stock
Power Corporation
Best Company
Retained Earnings,
from above
Noncontrolling
Interest
145,000
45,000
17,000
150,000
40,000
16,000
9,000
50,000
Credits
688,000
Item
200,000
131,000
Eliminations
Debit
Credit
(5) 2,000
Conso
lidated
187,000
61,000
26,000
200,000
200,000
60,000
(3) 60,000
48,000
68,125
16,000
126,875
184,125
(2)
125
(3) 32,000
184,125
32,125
833,000
223,000
5-62
E(2)
E(3)
60,000
52,125
20,500
20,000
2,500
E(4)
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential related to buildings
and equipment:
$2,000 = $20,000 / 10 years
5-63
25,500
8,500
2,000
15,000
10,500
5,000
3,500
100,500
32,125
20,500
2,000
2,000
P5-33 (continued)
b.
Best
Co.
290,000
25,500
315,500
145,000
35,000
25,000
12,000
23,000
(240,000
)
200,000
200,000
114,000
20,000
10,000
4,000
16,000
(164,000
)
75,500
36,000
Dividends Declared
131,000
75,500
206,500
(30,000)
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Other Expenses
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Best
Company Stock
Differential
Goodwill
Debits
Eliminations
Debit
Credit
Conso
lidated
490,000
(1) 25,500
490,000
259,000
55,000
37,000
16,000
39,000
(406,000)
(5) 2,000
84,000
(2) 8,500
36,000
(8,500)
75,500
48,000
36,000
84,000
(20,000)
(3) 52,125
36,000
126,875
75,500
202,375
176,500
64,000
88,125
68,500
85,000
97,000
50,000
350,000
32,000
14,000
24,000
25,000
150,000
(1) 15,000
(2) 5,000
245,000
5-64
(3) 20,500
(4) 2,500
172,375
100,500
99,000
121,000
75,000
520,000
(4) 20,000
111,000
761,500
20,000
(30,000)
(1) 10,500
(3)100,500
(4) 20,500
2,500
918,000
P5-33 (continued)
Power
Corp.
Best
Co.
Accum. Depreciation
170,000
50,000
Accounts Payable
Wages Payable
Notes Payable
Common Stock
Power Corporation
Best Company
Retained Earnings,
from above
Noncontrolling
Interest
51,000
14,000
150,000
15,000
6,000
50,000
Credits
761,500
Item
200,000
176,500
Eliminations
Debit
Credit
(4) 2,000
(5) 2,000
Conso
lidated
224,000
66,000
20,000
200,000
200,000
60,000
(3) 60,000
64,000
88,125
20,000
172,375
191,125
(2) 3,500
(3) 32,125
191,125
35,625
918,000
245,000
5-65
P5-33 (continued)
c.
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Less: Accumulated Depreciation
Goodwill
Total Assets
$100,500
99,000
121,000
75,000
$520,000
(224,000)
Accounts Payable
Wages Payable
Notes Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
296,000
2,500
$694,000
$ 66,000
20,000
200,000
$200,000
172,375
$372,375
35,625
408,000
$694,000
$490,000
$259,000
55,000
37,000
16,000
39,000
(406,000)
$ 84,000
(8,500)
$ 75,500
$126,875
75,500
$202,375
5-66
(30,000)
$172,375
5-67
Cash
Investment in Stanley Wood
Products Stock
Record dividends from Stanley Wood
Products: $10,000 x .80
(2)
(3)
5-68
8,000
8,000
24,000
24,000
4,000
4,000
$160,000
40,000
$200,000
(150,000
)
$ 50,000
P5-34 (continued)
b.
Eliminating entries:
E(1)
E(2)
E(3)
20,000
12,000
5,000
2,000
3,000
100,000
90,000
30,000
176,000
44,000
E(4)
50,000
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential.
5,000
E(6)
Accounts Payable
Cash and Receivables
Eliminate intercorporate receivable/payable.
5-69
8,000
10,000
20,000
30,000
5,000
10,000
P5-34 (continued)
c.
Item
Master
Corp.
Stanley
Wood
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Depreciation Expense
Inventory Losses
Debits
200,000
20,000
220,000
120,000
25,000
15,000
(160,000)
100,000
_______
100,000
50,000
15,000
5,000
(70,000)
Eliminations
Debit
Credit
5,000
(2)
5,000
60,000
30,000
30,000
314,000
60,000
374,000
(30,000)
90,000
30,000
120,000
(10,000)
(3) 90,000
30,000
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
Cash and Receivables
Inventory
Land
Buildings and Equipment
Investment in Stanley
Wood Products Stock
Differential
Debits
344,000
110,000
81,000
260,000
80,000
500,000
65,000
90,000
80,000
150,000
120,000
8,000
2,000
10,000
(4) 50,000
(3) 30,000
385,000
Accum. Depreciation
205,000
105,000
Accounts Payable
Notes Payable
Common Stock
Master Corporation
Stanley Wood Products
Retained Earnings,
from above
60,000
200,000
20,000
50,000
(6) 10,000
100,000
(3)100,000
110,000
120,000
5-70
(5,000)
60,000
(6) 10,000
1,109,000
344,000
300,000
170,000
45,000
20,000
(235,000
)
65,000
(1)
(2)
188,000
300,000
300,000
(1) 20,000
(5)
Cons
olidated
(1) 12,000
(3)176,000
(4) 30,000
(4) 20,000
(5) 5,000
314,000
60,000
374,000
(30,000)
344,000
136,000
350,000
160,000
700,000
1,346,000
335,000
70,000
250,000
300,000
10,000
344,000
Noncontrolling Interest
Credits
1,109,000
385,000
5-71
310,000
(2) 3,000
(3) 44,000
47,000
310,000 1,346,000
(2)
Cash
Investment in Granite Company Stock
Record dividends from Granite Company:
$20,000 x .80
16,000
(3)
48,000
(4)
5-72
173,000
3,000
173,000
16,000
48,000
3,000
P5-35 (continued)
b.
Eliminating entries:
E(1)
45,000
E(2)
11,250
E(3)
E(4)
Goodwill
Buildings and Equipment
Differential
Assign beginning differential:
$41,250 = $191,250 - $150,000
$25,000 = $66,250 - $41,250
50,000
100,000
66,250
25,000
41,250
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential related to
depreciable assets: $41,250 / 11 years
E(6)
Accounts Payable
Accounts Receivable
Eliminate intercorporate
receivable/payable.
3,750
16,000
5-73
16,000
29,000
4,000
7,250
173,000
43,250
66,250
3,750
16,000
P5-35 (continued)
c.
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Depreciation Expense
Other Expenses
Debits
Mortar
Granite
Corp.
Co.
700,000
400,000
45,000
745,000
500,000
25,000
75,000
(600,000)
400,000
250,000
15,000
75,000
(340,000)
Eliminations
Debit
Credit
1,100,000
(1) 45,000
(5)
1,100,000
750,000
43,750
150,000
(943,750
)
156,250
3,750
(2) 11,250
145,000
290,000
145,000
435,000
(50,000)
385,000
38,000
50,000
240,000
80,000
500,000
Consol
idated
60,000
60,000
(11,250
)
145,000
100,000
60,000
(3) 100,000
60,000
290,000
145,000
160,000
(20,000)
140,000
25,000
55,000
100,000
20,000
150,000
(1) 16,000
(2) 4,000
160,000
(6) 16,000
(4) 41,250
202,000
1,110,000
350,000
155,000
70,000
200,000
75,000
35,000
50,000
5-74
20,000
(3) 66,250
(4) 25,000
(6) 16,000
(1) 29,000
(3) 173,000
(4) 66,250
(5)
3,750
435,000
(50,000)
385,000
63,000
89,000
340,000
100,000
691,250
25,000
1,308,250
233,750
89,000
250,000
Common Stock
Mortar Corporation
Granite Company
Retained Earnings,
from above
Noncontrolling Interest
Credits
300,000
385,000
1,110,000
50,000
(3) 50,000
140,000
160,000
350,000
5-75
358,500
300,000
20,000
(2) 7,250
(3) 43,250
385,000
50,500
358,500 1,308,250
Cash
Investment in Granite Company Stock
Record dividends from Granite Company:
$20,000 = $25,000 x .80
20,000
(2)
36,000
(3)
5-76
3,000
20,000
36,000
3,000
P5-36 (continued)
b.
Eliminating entries:
E(1)
E(2)
E(3)
E(4)
33,000
6,050
50,000
140,000
62,500
Goodwill
Buildings and Equipment
Differential
Accumulated Depreciation
Assign beginning differential.
25,000
41,250
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential related to
depreciable assets.
3,750
E(6)
11,000
E(7)
Accounts Payable
Accounts Receivable
Eliminate intercorporate
receivable/payable.
9,000
5-77
20,000
13,000
5,000
1,050
202,000
50,500
62,500
3,750
3,750
11,000
9,000
P5-36 (continued)
c.
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Depreciation Expense
Goodwill Impairment Loss
Other Expenses
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Granite
Company Stock
Differential
Goodwill
Debits
Mortar
Corp.
Granite
Co.
650,000
470,000
33,000
683,000
490,000
25,000
62,000
(577,000)
106,000
385,000
106,000
491,000
(45,000)
446,000
59,000
83,000
275,000
80,000
500,000
470,000
310,000
15,000
100,000
Eliminations
Debit
Credit
1,120,000
(1) 33,000
800,000
43,750
11,000
162,000
(5) 3,750
(6) 11,000
140,000
45,000
(1,016,750)
103,250
(2)
6,050
53,800
(6,050)
97,200
(3)140,000
53,800
385,000
97,200
185,000
(25,000)
160,000
31,000
71,000
118,000
30,000
150,000
(1) 20,000
(2) 5,000
193,800
9,000
(4) 41,250
(3) 62,500
(4) 25,000
1,212,000
400,000
Accum. Depreciation
180,000
90,000
Accounts Payable
Mortgages Payable
Common Stock
Mortar Corporation
Granite Company
Retained Earnings,
86,000
200,000
30,000
70,000
(7) 9,000
50,000
(3) 50,000
5-78
25,000
(7)
215,000
300,000
1,120,000
(425,000)
45,000
Consolidated
(1) 13,000
(3)202,000
(4) 62,500
(6) 11,000
(4)
(5)
3,750
3,750
482,200
(45,000)
437,200
90,000
145,000
393,000
110,000
691,250
14,000
1,443,250
277,500
107,000
270,000
300,000
from above
Noncontrolling Interest
Credits
446,000
160,000
193,800
1,212,000
400,000
381,550
5-79
25,000
(2) 1,050
(3) 50,500
381,550
437,200
51,550
1,443,250
Eliminating entries:
E(1)
15,000
E(2)
10,000
E(3)
E(4)
E(5)
5-80
6,000
4,000
100,000
60,000
9,000
6,000
6,000
4,000
6,000
4,000
96,000
64,000
P5-37 (continued)
b.
Sparta
Co.
220,000
15,000
235,000
150,000
30,000
8,000
(188,000)
148,000
148,000
110,000
10,000
3,000
(123,000)
47,000
25,000
Dividends Declared
208,000
47,000
255,000
(24,000)
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Depreciation Expense
Interest Expense
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Eliminations
Debit
Credit
Cons
olidated
368,000
(1) 15,000
368,000
260,000
40,000
11,000
(311,000)
57,000
(2) 10,000
25,000
(10,000)
47,000
60,000
25,000
85,000
(15,000)
(5) 60,000
25,000
208,000
47,000
255,000
231,000
70,000
85,000
Cash
Accounts Receivable
Inventory
Buildings and Equipment
Investment in Row
Company Securities
Investment in Sparta
Company Stock
27,000
65,000
40,000
500,000
8,000
22,000
30,000
235,000
35,000
87,000
70,000
735,000
40,000
40,000
Debits
740,000
108,000
335,000
5-81
(1) 9,000
(2) 6,000
15,000
(1) 6,000
(3) 6,000
(5) 96,000
(24,000)
231,000
967,000
P5-37 (continued)
Amber
Corp.
Spart
a
Co.
Accum. Depreciation
Accounts Payable
Bonds Payable
Common Stock
Amber Corporation
Sparta Company
Retained Earnings,
from above
Accumulated Other
Comprehensive Income,
from below
Noncontrolling
Interest
140,000
63,000
100,000
85,000
20,000
50,000
Credits
740,000
Item
Other Comprehensive
Income:
OCI from Subsidiary
Unrealized Gain on
Investments
Unrealized Gain on
Investments
Other Comprehensive
Income to Noncontrolling Interest
Accumulated Other
Comprehensive Income,
December 31, carry up
200,000
Eliminations
Debit
Credit
225,000
83,000
150,000
100,000
(5)100,000
231,000
70,000
85,000
6,000
10,000
10,000
335,000
6,000
195,000
200,000
15,000
231,000
6,000
(2) 4,000
(4) 4,000
(5) 64,000
195,000
72,000
967,000
(3) 6,000
10,000
6,000
Conso
lidated
10,000
5-82
10,000
(4) 4,000
(4,000)
10,000
6,000
P5-37 (continued)
c.
Cash
Accounts Receivable
Inventory
Buildings and Equipment
Less: Accumulated Depreciation
Investment in Marketable Securities
Total Assets
$735,000
(225,000)
Accounts Payable
Bonds Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
$ 35,000
87,000
70,000
510,000
40,000
$742,000
$ 83,000
150,000
$200,000
231,000
6,000
$437,000
72,000
509,000
$742,000
$260,000
40,000
11,000
$368,000
(311,000)
$ 57,000
(10,000)
$ 47,000
5-83
$57,000
10,000
$67,000
(14,000)
$53,000
Eliminating entries:
E(1)
18,000
E(2)
12,000
E(3)
E(4)
E(5)
5-84
2,400
1,600
100,000
70,000
10,000
12,000
6,000
8,000
4,000
2,400
1,600
108,000
72,000
P5-38 (continued)
b.
Sparta
Co.
250,000
18,000
268,000
170,000
30,000
8,000
(208,000)
140,000
140,000
97,000
10,000
3,000
(110,000)
60,000
30,000
Dividends Declared
231,000
60,000
291,000
(40,000)
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Depreciation Expense
Interest Expense
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Eliminations
Debit
Credit
Consolidated
390,000
(1) 18,000
390,000
267,000
40,000
11,000
(318,000)
72,000
(2) 12,000
30,000
(12,000)
60,000
70,000
30,000
100,000
(20,000)
(5) 70,000
30,000
231,000
60,000
291,000
251,000
80,000
100,000
Cash
Accounts Receivable
Inventory
Buildings and Equipment
Investment in Row
Company Securities
Investment in Sparta
Company Stock
18,000
45,000
40,000
585,000
11,000
21,000
30,000
257,000
29,000
66,000
70,000
842,000
44,000
44,000
Debits
804,400
116,400
363,000
5-85
(1) 12,000
(2) 8,000
20,000
(1) 6,000
(3) 2,400
(5)108,000
(40,000)
251,000
1,051,000
P5-38 (continued)
Amber
Corp.
Sparta
Co.
Accum. Depreciation
Accounts Payable
Bonds Payable
Common Stock
Amber Corporation
Sparta Company
Retained Earnings,
from above
Accumulated Other
Comprehensive Income,
from below
Noncontrolling
Interest
170,000
75,000
100,000
95,000
24,000
50,000
Credits
804,400
Item
Other Comprehensive
Income:
OCI from Subsidiary
Unrealized Gain
on Investments
Unrealized Gain on
Investments
Other Comprehensive
Income to Noncontrolling Interest
Accumulated Other
Comprehensive
Income, January 1
Accumulated Other
Comprehensive Income
December 31, carry up
200,000
Eliminations
Debit
Credit
265,000
99,000
150,000
100,000
(5)100,000
251,000
80,000
100,000
8,400
14,000
14,000
363,000
2,400
Consolidated
214,000
(3)
200,000
20,000
251,000
8,400
(2) 4,000
(4) 1,600
(5) 72,000
214,000
77,600
1,051,000
2,400
4,000
4,000
(4)
1,600
(1,600)
6,000
10,000
(5) 10,000
6,000
8,400
14,000
14,000
8,400
5-86
Operating income
Income from subsidiary
Net income
North
$35,000
$35,000
b. Consolidated net income is equal to the $114,500 net income reported by Quill.
c. Retained earnings reported at December 31, 20X9:
Quill
$290,000
114,500
(30,000)
$374,500
North
$40,000
35,000
(10,000)
$65,000
d. Consolidated retained earnings at December 31, 20X9, is equal to the $374,500 retained
earnings balance reported by Quill.
e. When the cost method is used, the parent's proportionate share of the increase in retained
earnings of the subsidiary subsequent to acquisition is not included in the parent's retained
earnings. Thus, this amount must be added to the total retained earnings reported by the
parent in arriving at consolidated retained earnings.
5-87
40,000
85,000
14,700
E(2) Inventory
Buildings and Equipment
Differential
Assign differential.
4,200
10,500
12,500
5-88
102,200
37,500
14,700
12,500
P5-40 (continued)
Porter Corporation and Darla Corporation
Consolidated Balance Sheet Workpaper
December 31, 20X4
b.
Item
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Darla
Corporation Stock
Differential
Total Debits
Accumulated Depreciation
Accounts Payable
Mortgage Payable
Common Stock
Porter Corporation
Darla Corporation
Retained Earnings
Noncontrolling Interest
Total Credits
c.
Porter
Corp.
Darla
50,300
90,000
130,00
0
60,000
410,00
0
21,000
44,000
75,000
Corp.
30,000
250,00
0
102,20
0
842,50
0
150,00
0
152,50
0
250,00
0
80,000
210,00
0
842,50
0
Eliminations
Debit
(2) 4,200
Credit
(3) 12,500
Consolidated
71,300
121,500
209,200
90,000
670,500
(2) 10,500
(1)102,200
420,00
0
80,000
35,000
(1) 14,700
(2) 14,700
1,162,500
230,000
175,000
(3) 12,500
180,00
0
430,000
80,000
40,000
85,000
(1) 40,000
(1) 85,000
420,00
0
166,900
210,000
(1) 37,500
166,900
37,500
1,162,500
$670,500
(230,000)
Accounts Payable
Mortgage Payable
$ 71,300
121,500
209,200
90,000
440,500
$932,500
$175,000
430,000
5-89
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
5-90
$ 80,000
210,000
290,000
37,500
327,500
$932,500
E(2)
6,000
E(3)
60,000
40,000
21,000
15,000
6,000
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential:
$1,500 = $15,000 / 10 years
1,500
E(6)
3,500
E(4)
5-91
16,500
12,000
4,500
4,000
2,000
96,000
25,000
21,000
1,500
3,500
P5-41 (continued)
b.
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Other Expenses
Goodwill Impairment Loss
Debits
Power
Corp.
Best
Co.
260,000
16,500
276,500
125,000
42,000
25,000
12,000
13,500
180,000
(217,500
)
(156,000
)
59,000
24,000
Dividends Declared
102,000
59,000
161,000
(30,000)
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Best
Company Stock
Differential
Goodwill
Debits
180,000
110,000
27,000
10,000
4,000
5,000
Eliminations
Debit
Credit
Consolidated
440,000
(1) 16,500
440,000
235,000
69,000
36,500
16,000
18,500
3,500
(378,500)
(5) 1,500
(6) 3,500
61,500
(2) 6,000
27,500
(6,000)
55,500
40,000
24,000
64,000
(16,000)
(3) 40,000
27,500
102,000
55,500
157,500
131,000
48,000
67,500
47,500
70,000
90,000
30,000
350,000
21,000
12,000
25,000
15,000
150,000
(1) 12,000
(2) 4,000
223,000
5-92
(3) 21,000
(4) 6,000
127,500
68,500
82,000
115,000
45,000
515,000
(4) 15,000
100,500
688,000
16,000
(30,000)
(1) 4,500
(3) 96,000
(4) 21,000
(6) 3,500
2,500
828,000
P5-41 (continued)
Power
Corp.
Best
Co.
Accum. Depreciation
Accounts Payable
Wages Payable
Notes Payable
Common Stock
Power Corporation
Best Company
Retained Earnings,
from above
Noncontrolling
Interest
145,000
45,000
17,000
150,000
40,000
16,000
9,000
50,000
Credits
688,000
Item
200,000
131,000
Eliminations
Debit
Credit
(5) 1,500
Conso
lidated
186,500
61,000
26,000
200,000
200,000
60,000
(3) 60,000
48,000
67,500
16,000
127,500
169,500
(2) 2,000
(3) 25,000
169,500
27,000
828,000
223,000
5-93
E(2)
E(3)
60,000
51,500
16,000
15,000
2,500
E(4)
E(5)
Depreciation Expense
Accumulated Depreciation
Amortize differential related to buildings
and equipment:
$1,500 = $15,000 / 10 years
5-94
25,500
9,000
1,500
15,000
10,500
5,000
4,000
100,500
27,000
16,000
1,500
1,500
P5-42 (continued)
b.
Best
Co.
290,000
25,500
315,500
145,000
35,000
25,000
12,000
23,000
(240,000
)
200,000
200,000
114,000
20,000
10,000
4,000
16,000
(164,000
)
75,500
36,000
Dividends Declared
131,000
75,500
206,500
(30,000)
Item
Sales
Income from Subsidiary
Credits
Cost of Goods Sold
Wage Expense
Depreciation Expense
Interest Expense
Other Expenses
Debits
Income to Noncontrolling Interest
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Investment in Best
Company Stock
Differential
Goodwill
Debits
Eliminations
Debit
Credit
Conso
lidated
490,000
(1) 25,500
490,000
259,000
55,000
36,500
16,000
39,000
(405,500)
(5) 1,500
84,500
(2) 9,000
36,000
(9,000)
75,500
48,000
36,000
84,000
(20,000)
(3) 51,500
36,000
127,500
75,500
203,000
176,500
64,000
87,500
68,500
85,000
97,000
50,000
350,000
32,000
14,000
24,000
25,000
150,000
(1) 15,000
(2) 5,000
245,000
5-95
(3) 16,000
(4) 2,500
173,000
100,500
99,000
121,000
75,000
515,000
(4) 15,000
111,000
761,500
20,000
(30,000)
(1) 10,500
(3)100,500
(4) 16,000
2,500
913,000
P5-42 (continued)
Power
Corp.
Best
Co.
Accum. Depreciation
170,000
50,000
Accounts Payable
Wages Payable
Notes Payable
Common Stock
Power Corporation
Best Company
Retained Earnings,
from above
Noncontrolling
Interest
51,000
14,000
150,000
15,000
6,000
50,000
Credits
761,500
Item
200,000
176,500
Eliminations
Debit
Credit
(4) 1,500
(5) 1,500
Conso
lidated
223,000
66,000
20,000
200,000
200,000
60,000
(3) 60,000
64,000
87,500
20,000
173,000
181,000
(2) 4,000
(3) 27,000
181,000
31,000
913,000
245,000
5-96
P5-42 (continued)
c.
Cash
Accounts Receivable
Inventory
Land
Buildings and Equipment
Less: Accumulated Depreciation
Goodwill
Total Assets
$100,500
99,000
121,000
75,000
$515,000
(223,000)
Accounts Payable
Wages Payable
Notes Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
292,000
2,500
$690,000
$ 66,000
20,000
200,000
$200,000
173,000
$373,000
31,000
404,000
$690,000
$490,000
$259,000
55,000
36,500
16,000
39,000
(405,500)
$ 84,500
(9,000)
$ 75,500
$127,500
75,500
$203,000
5-97
5-98
(30,000)
$173,000
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
10,000
E(2)
150,000
50,000
20,000
E(3)
Goodwill
Differential
Assign differential at date of acquisition.
20,000
E(4)
12,000
5-99
10,000
220,000
20,000
12,000
P5-43A (continued)
Light Corporation and Star Company
Consolidated Workpaper
December 31, 20X5
Light
Corp.
Star
Co.
300,000
10,000
310,000
210,000
25,000
150,000
23,000
(258,000)
52,000
25,000
(130,000)
20,000
230,000
52,000
282,000
(20,000)
50,000
20,000
70,000
(10,000)
(2) 50,000
22,000
262,000
60,000
72,000
Cash
Accounts Receivable
Inventory
Buildings and Equipment
Investment in Star
Company Stock
Differential
Goodwill
Debits
37,000
50,000
70,000
300,000
20,000
30,000
60,000
240,000
677,000
350,000
Accum. Depreciation
Accounts Payable
Taxes Payable
Common Stock
Light Corporation
Star Company
Retained Earnings,
from above
Credits
105,000
40,000
70,000
65,000
20,000
55,000
Item
Sales
Dividend Income
Credits
Cost of Goods Sold
Depreciation Expense
Goodwill Impairment Loss
Other Expenses
Debits
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
150,000
85,000
20,000
220,000
200,000
262,000
677,000
Eliminations
Debit
Credit
450,000
(1) 10,000
450,000
295,000
45,000
12,000
48,000
(400,000)
50,000
(4) 12,000
22,000
(1) 10,000
230,000
50,000
280,000
(20,000)
10,000
260,000
57,000
80,000
130,000
540,000
(2) 20,000
(3) 20,000
(2)220,000
(3) 20,000
(4) 12,000
8,000
815,000
170,000
60,000
125,000
150,000
(2)150,000
60,000
350,000
72,000
262,000
5-100
Conso
lidated
200,000
10,000
262,000
260,000
815,000
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
E(2)
E(3)
Goodwill
Differential
Assign differential at beginning of year.
5-101
20,000
150,000
62,000
8,000
8,000
20,000
220,000
8,000
P5-44A (continued)
Light Corporation and Star Company
Consolidated Workpaper
December 31, 20X6
Light
Corp.
Star
Co.
Sales
Dividend Income
Credits
Cost of Goods Sold
Depreciation Expense
Other Expenses
Debits
Income, carry forward
350,000
20,000
370,000
270,000
25,000
21,000
(316,000)
54,000
200,000
200,000
135,000
20,000
10,000
(165,000)
35,000
262,000
54,000
316,000
(20,000)
60,000
35,000
95,000
(20,000)
(2) 62,000
20,000
296,000
75,000
82,000
Cash
Accounts Receivable
Inventory
Buildings and Equipment
Investment in Star
Company Stock
Differential
Goodwill
Debits
46,000
55,000
75,000
300,000
30,000
40,000
65,000
240,000
696,000
375,000
Accum. Depreciation
Accounts Payable
Taxes Payable
Common Stock
Light Corporation
Star Company
Retained Earnings,
from above
Credits
130,000
20,000
50,000
85,000
30,000
35,000
Item
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
220,000
200,000
296,000
696,000
Eliminations
Debit
Credit
550,000
(1) 20,000
550,000
405,000
45,000
31,000
(481,000)
69,000
20,000
(1) 20,000
260,000
69,000
329,000
(20,000)
20,000
309,000
76,000
95,000
140,000
540,000
(2)
(3)
8,000
8,000
(2)220,000
(3) 8,000
8,000
859,000
215,000
50,000
85,000
150,000
(2)150,000
75,000
375,000
82,000
248,000
5-102
Cons
olidated
200,000
20,000
248,000
309,000
859,000
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
16,000
E(2)
12,000
E(3)
5-103
50,000
100,000
16,000
4,000
8,000
120,000
30,000
P5-45A (continued)
Samuelson Company and Rapid Delivery Corporation
Consolidation Workpaper
December 31, 20X6
Item
Sales
Dividend Income
Credits
Cost of Goods Sold
Depreciation Expense
Wage Expenses
Other Expenses
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Samuels
on
Company
Rapid
Delivery
700,000
16,000
716,000
500,000
25,000
45,000
30,000
(600,000)
400,000
250,000
15,000
35,000
40,000
(340,000)
116,000
60,000
Dividends Declared
290,000
116,000
406,000
(50,000)
400,000
Conso
l-
Eliminations
Debit
Credit
idated
1,100,000
(1) 16,000
1,100,000
750,000
40,000
80,000
70,000
(940,000)
160,000
(2) 12,000
28,000
(12,000)
148,000
100,000
60,000
160,000
(20,000)
(3)100,000
28,000
290,000
148,000
438,000
356,000
140,000
128,000
141,000
240,000
80,000
500,000
80,000
100,000
20,000
150,000
(1) 16,000
(2) 4,000
20,000
(50,000)
388,000
221,000
340,000
100,000
650,000
120,00
0
1,081,000
350,000
1,311,000
155,000
70,000
200,000
75,000
35,000
50,000
230,000
105,000
250,000
300,000
356,000
1,081,000
(3)120,000
300,000
50,000
(3) 50,000
140,000
128,000
20,000
388,000
178,000
(2) 8,000
(3) 30,000
178,000
38,000
1,311,000
350,000
P5-45A (continued)
Samuelson Company and Subsidiary
Consolidated Balance Sheet
December 31, 20X6
Cash and Receivables
Inventory
Land
Buildings and Equipment
Less: Accumulated Depreciation
Total Assets
Accounts Payable
Notes Payable
Stockholders Equity:
Controlling Interest:
Common Stock
Retained Earnings,
Total Controlling Interest
Noncontrolling Interest
Total Stockholders Equity
Total Liabilities and Stockholders' Equity
$650,000
(230,000)
$ 221,000
340,000
100,000
420,000
$1,081,000
$ 105,000
250,000
$300,000
388,000
$688,000
38,000
726,000
$1,081,000
$750,000
40,000
80,000
70,000
$1,100,000
(940,000)
$ 160,000
(12,000)
$ 148,000
$ 290,000
148,000
$ 438,000
(50,000)
$ 388,000
b.
8,000
8,000
Eliminating entries:
E(1)
Dividend Income
Dividends Declared
Eliminate dividend income from subsidiary.
8,000
E(2)
5,000
E(3)
160,000
40,000
E(5)
50,000
E(6)
16,000
4,000
Depreciation Expense
Accumulated Depreciation
Amortize differential.
E(8)
Accounts Payable
Cash and Receivables
Eliminate intercorporate
receivable/payable.
2,000
3,000
100,000
50,000
50,000
E(4)
E(7)
8,000
8,000
5,000
10,000
8,000
50,000
20,000
5,000
10,000
P5-46A (continued)
Master Corporation and Stanley Wood Products Company
Consolidation Workpaper
December 31, 20X5
c.
Item
Sales
Dividend Income
Credits
Cost of Goods Sold
Depreciation Expense
Inventory Losses
Debits
Consolidated Net Income
Income to Noncontrolling Interest
Income, carry forward
Ret. Earnings, Jan. 1
Income, from above
Dividends Declared
Ret. Earnings, Dec. 31,
carry forward
Cash and Receivables
Inventory
Land
Buildings and Equipment
Investment in Stanley
Wood Products Stock
Differential
Debits
Master
Corp.
Stanley
Wood
200,000
100,000
8,000
208,000
120,000
25,000
15,000
(160,000)
48,000
298,000
48,000
346,000
(30,000)
316,000
81,000
260,000
80,000
500,000
100,000
50,000
15,000
5,000
Eliminations
Debit
Credit
300,000
(1)
8,000
(7)
5,000
90,000
30,000
(2)
5,000
18,000
(5,000)
60,000
(3) 50,000
(4) 8,000
(6) 16,000
18,000
314,000
60,000
(1)
(2)
110,000
65,000
90,000
80,000
150,000
92,000
(3) 50,000
385,000
Accum. Depreciation
205,000
105,000
Accounts Payable
Notes Payable
Common Stock
Master Corporation
Stanley Wood
Retained Earnings,
from above
Noncontrolling Interest
60,000
200,000
20,000
50,000
(8) 10,000
100,000
(3)100,000
110,000
8,000
2,000
(6)
92,000
4,000
374,000
(30,000)
10,000
344,000
(8) 10,000
136,000
350,000
160,000
700,000
(5) 50,000
1,081,000
316,000
170,000
45,000
20,000
(235,000)
65,000
120,000
(10,000)
160,000
300,000
300,000
(70,000)
30,000
Consolidated
(3)160,000
(5) 50,000
(6) 20,000
(7) 5,000
1,346,000
335,000
70,000
250,000
300,000
(2)
10,000
3,000
344,000
Credits
1,081,000
385,000
306,000
(3) 40,000
(4) 8,000
306,000
47,000
1,346,000