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P6-3 Naftalia Imanika (1411000224

)

Cost January 1, 2011 $270,000
Implied fair value of Sor ($270,000 / 90%) $300,000 Book
value of Sor (240,000) Excess
of fair value over book value - Goodwill $ 60,000
$270,000
Cost January 1, 2011
Add: Income from Stor for 2006
Equity in income ($40,000 90%) $ 36,000
Less: Unrealized inventory profit (10,000)
Less: Unrealized profit on machinery
(selling price $35,000 - book value $28,000) (7,000)
Add: Piecemeal recognition of profit on
machinery ($7,000/3.5 years .5 year) 1,000
Income from Stor for 2006 20,000
Less: Dividends $10,000 90% (9,000)

Investment balance January 1, 2012 281,000
Add: Income from Stor for 2012
Equity in income ($50,000 90%) $ 45,000
Add: Unrealized profit in beginning inventory 10,000
Less: Unrealized profit in ending inventory (12,000)
Add: Piecemeal recognition of profit on
machinery ($7,000/3.5 years) 2,000
Less: Gain on sale of land (5,000)
Income from Stor for 2007 40,000
Less: Dividends ($20,000 90%) (18,000)

Investment balance December 31, 2012 $303,000

000 x 10%) Deviden 2.000 Goodwill 60.000) g) Capital stock 150.000 Cost of sale 72.000 Machine 4.000 f) Income from Sor 40.000 (20.000) i) Account payable 10.000 (20.000+6000-22.000 d) Investment in Sor 6.000 j) Deviden payable 18.000 .000 e) Gain on land 5.000 Operating expense 2.000 +10.000 Account receivable 10.000 b) Investment inSor 10.000 x 90%) Investment in Sor 22.000-2.000 ((50.a) Sales 72.000) Dividen 18.000 Inventory 12.000 (40.000) Noncontrolling interest 33.000 Land 5.000 x 90%) Deviden receivable 18.000 Cost of sale 10.000 (5.000 – 18.000 (20.000 x 10%) Noncontrolling interest 3.000 Retained earining 120.000 (50.000 Investment in Sor 297.000 h) Noncontrolling interest share 5.000 (303.000 c) Cost of sale 12.000 x 90%)-5.

000 50.000 Net income 182.000 $1.000 10.000 40.000) Retained earnings December 31 $ 234.000 $ 50.000 800.000 30.000 466. Pall Corporation and Subsidiary Consolidation Working Papers for the Year Ended December 31.000 170.000 36.000 Total assets $1.000 Dividends (150.000 $ 147.000 $ 202.000 Retained earnings 234.000 150.000) (100.000 $ 568.000 Dividends payable 30.000 Other liabilities 140.000 150.000 .000 Balance Sheet Cash $ 133.000 $ 190.000 Dividends receivable 18. 2012 Adjustments and Consolidated Pall Stor 90% Eliminations Statements Income Statement Sales $ 450.000 (151.000 32.000 Retained earnings — Stor $ 120.000 Noncontrolling interest January 1 33.000 72.404.000 10.000 72.000 4.000 10.000 $ 50.000 $1.000) (20.000 20.000 360.000 Capital stock 800.000 Gain on land 5.000 (5.000) 12.000) (40.000 12.000 80.000 Accounts receivable 180.000 $ 240.000 Machinery — net 330.000 5.000 234.000 30.000 $ 400.000 Retained Earnings Retained earnings — Pall $ 202.000) Operating expense (113.000 Goodwill 60.000 (150.000 Buildings — net 280.000 125.000 Investment in Stor 303.000 18.000 6.512.000) Net income $ 182.000 $ 14.000 Accounts payable $ 200.000 150.000 Income from Stor 40.000 140.000 Land 100.000 $ 182.000 (230.000 60.000 22.000) 2.000) 18.000 18.000 297.000 $ 150.000 Cost of sales (200.000) Noncontrolling expense 5.000 100.000 182.000 270.512.000 $ 234.000 120.000 Noncontrolling interest December 31 3.000 2.000 Inventories 60.000 Total equities $1.000 5.000 84.000 $ 400.404.000 30.000 10.