Puto Company and Subsidiary 1

Consolidated Working Paper

For the Year Ended December 31, 2015

2015 Trial Balance 2015 Elimination Entries Consolidated Consolidated Net Income 2015
Trial Balance Dr Cr Balances Net Income - Po 225,600
Account Titles Puto Suman Dividend Income (33,600)
Statement of Comprehensive Income Company Company Realized GP 18,000
Net Sales 540,000 360,000 195,000 705,000 Unrealized GP (24,000)
Dividend Income 33,600 33,600 0 Net Income - Po, adjusted 186,000 1
Total Revenue 573,600 360,000 705,000 1 Net Income, So 90,000
Cost of Goods Sold (216,000) (192,000) 30,000 225,000 (213,000) Add: Realized GP 12,000
Operating Expenses (60,000) (24,000) 6,000 (90,000) Less: Amortization of excess (7,200)
Other Expenses (72,000) (54,000) 1,200 (127,200) Less: Unrealized GP (6,000) 88,800 1
Goodwill Impairment Loss 0 Consolidated Net Income 274,800 1
Consolidated CI 225,600 90,000 274,800 1 NCI 26,640 1
NCI in CI of S 26,640 (26,640) 1 Parent 248,160 1
Net income to SRE 225,600 90,000 248,160 1
Consolidated Retained Earnings
Statement of Retained Earnings Retained Earnings, Po 12/31/14 634,800 1
Retained Earnings, 1/1/2015 481,200 128,000 162,150 2,325 449,375 1 Less: Unrealized GP (24,000) 1
Net income from SCI 225,600 90,000 248,160 Add: Po's share in adj. net
Total 706,800 218,000 697,535 1 increase in earnings from
Dividends Declared (72,000) (48,000) 48,000 (72,000) date of acquisition
Retained Earnings, 12/31/2015 to SFP 634,800 170,000 625,535 1 Cumulative increase in R/E 50,000
Less: Amortization of excess (22,950)
Balance Sheet Less: Unrealized GP, 2015 (6,000)
Cash 311,700 102,000 413,700 21,050 1
Accounts Receivable 180,000 80,000 260,000 70% 14,735 1
Inventory 216,000 108,000 6,000 36,000 294,000 625,535 1
Land 210,000 48,000 7,200 265,200
Equipment, net 90,000 78,000 96,000 24,000 240,000
Buildings, net 270,000 234,000 12,000 24,000 492,000 Consolidated NCI
Investment in Sub. Company 325,500 325,500 0 Net Assets, beginning 368,000 1
Goodwill 10,200 2,550 7,650 Increase in adjusted undistributed earnings
Total 1,603,200 650,000 1,972,550 1 Increase - current year 42,000
Less: Unrealized GP (6,000) 36,000 1
Accounts Payable 128,400 120,000 248,400 Unamortized excess 82,050 1
Bonds Payable 240,000 120,000 360,000 Net Assets, at fair value, 3/31/09 486,050 1
Discount on Bonds Payable 9,600 2,400 (7,200) NCI Interest 30%
Common Stock 600,000 240,000 240,000 600,000 NCI 145,815 1
Retained Earnings from SRE 634,800 170,000 625,535
Non controlling interest 20,325 166,140 145,815 1
Total 1,603,200 650,000 855,915 855,915 1,972,550 1 Consolidated S/E
0 0 11 Common stock, Parent 600,000
Requirement 1: Consolidated R/E 625,535
Investment in S 325,500.00 NCI 145,815
Cash 325,500.00 1,371,350
#
15
Requirement 2: Parent (70%) NCI (30%) Total
Fair Value 325,500.00 139,500.00 465,000.00
Book Value 252,000.00 108,000.00 360,000.00
Excess 73,500.00 31,500.00 105,000.00 2014 2015
Allocation of excess:
Inventory 4,200.00 1,800.00 6,000.00 6,000.00
Land 5,040.00 2,160.00 7,200.00
Equipment, net 67,200.00 28,800.00 96,000.00 12,000.00 12,000.00
Buildings, net (16,800.00) (7,200.00) (24,000.00) (6,000.00) (6,000.00)
Bonds Payable 6,720.00 2,880.00 9,600.00 1,200.00 1,200.00
Goodwill 7,140.00 3,060.00 10,200.00 13,200.00
Goodwill Allocation 70% 30% 2,550.00
15,750.00 7,200.00
Requirement 3:
Common Stock 240,000.00 1
Retained Earnings 120,000.00
Investment in S 252,000.00
NCI 108,000.00
#

Inventory 6,000.00 1
Land 7,200.00
Equipment, net 96,000.00
Discount on Bonds Payable 9,600.00
Goodwill 10,200.00
Buildings, net 24,000.00
Investment in S 73,500.00
NCI 31,500.00
#

Retained Earnings, beginning 15,750.00 1

Operating Expenses (Depreciation) 6,000.00 1
Interest Expense 1,200.00 1
Buildings, net 12,000.00
Inventory 6,000.00
Equipment, net 24,000.00
Discount on Bonds Payable 2,400.00
Goodwill 2,550.00

Dividend Income 33,600.00 1

NCI 14,400.00 1
Dividend Declared 48,000.00
# 7
Downstream Sales
Upstream Sales SP Cost Profit SP Cost Profit
Beginning 90,000.00 72,000.00 18,000.00 30,000.00 18,000.00 12,000.00
Purchases 120,000.00 90,000.00 30,000.00 75,000.00 60,000.00 15,000.00
Total 210,000.00 162,000.00 48,000.00 105,000.00 78,000.00 27,000.00
Ending (96,000.00) (72,000.00) (24,000.00) (30,000.00) (24,000.00) (6,000.00)
COGS 114,000.00 90,000.00 24,000.00 75,000.00 54,000.00 21,000.00

Sales 120,000.00 Sales 75,000.00 3

COGS 120,000.00 COGS 75,000.00
# #

COGS 24,000.00 COGS 6,000.00 3

Inventory 24,000.00 Inventory 6,000.00
# #
Retained earnings, beg - P 18,000.00 1
COGS 18,000.00
#

Retained earnings, beg - P 8,400.00

NCI 3,600.00 1
COGS 12,000.00
#

NCI 2,325.00 1
R/E, beg 2,325.00
#

Increase in R/E 8,000.00 1

Less: PY amortization of excess (15,750.00) 1
(7,750.00) (2,325.00) 1

NCI in CI 26,640.00 1
NCI 26,640.00
#
Net Income of S 90,000.00 1
Add: RGP 12,000.00 1
Less: UGP (6,000.00) 1
Less: Amortization (7,200.00) 1
Adjusted Net Income of S 88,800.00 26,640.00 2
19

Grand Total 110

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