2014 Trial Balance 2014 Elimination Entries Consolidated Points Consolidated Net Income 2014

Trial Balance Dr Cr Balances Net Income - Po 193,200 1

Account Titles Puto Suman Dividend Income (25,200) 1
Statement of Comprehensive Income Company Company Realized GP 0
Net Sales 480,000 240,000 210,000 510,000 Unrealized GP (18,000) 1
Dividend Income 25,200 25,200 0 Net Income - Po, adjusted 150,000 1
Total Revenue 505,200 240,000 510,000 Net Income, S 44,000 1
Cost of Goods Sold (204,000) (138,000) 36,000 210,000 (168,000) Add: Realized GP
Operating Expenses (60,000) (40,000) 6,000 (106,000) Less: Amortization of excess (15,750) 1
Other Expenses (48,000) (18,000) 1,200 (67,200) Less: Unrealized GP (12,000) 16,250 1
Goodwill Impairment Loss 2,550 (2,550) Consolidated Net Income 166,250 1
Consolidated CI 193,200 44,000 166,250 NCI 4,875 1
NCI in CI of S 4,875 (4,875) Parent 161,375 1
Net income to SRE 193,200 44,000 161,375
Consolidated Retained Earnings
Statement of Retained Earnings Retained Earnings, Po 12/31/14 481,200 1
Retained Earnings, 1/1/2014 360,000 120,000 120,000 360,000 Less: Unrealized GP (18,000) 1
Net income from SCI 193,200 44,000 161,375 Add: Po's share in adj. net
Total 553,200 164,000 521,375 increase in earnings from
Dividends Declared (72,000) (36,000) 36,000 (72,000) date of acquisition
Retained Earnings, 12/31/2014 to SFP 481,200 128,000 449,375 Increase, 2012 8,000 1
Less: Amortization of excess (15,750) 1
Balance Sheet Less: Unrealized GP, 2014 (12,000) 1
Cash 279,300 90,000 369,300 (19,750)
Accounts Receivable 90,000 60,000 30,000 120,000 70% (13,825) 1
Inventory 120,000 90,000 6,000 36,000 180,000 449,375 1
Land 210,000 48,000 7,200 265,200
Equipment, net 105,000 96,000 96,000 12,000 285,000
Buildings, net 315,000 252,000 6,000 24,000 549,000 Consolidated NCI
Investment in Sub. Company 325,500 325,500 0 Net Assets, beginning 360,000 1
Goodwill 10,200 2,550 7,650 Increase in adjusted undistributed earnings
Total 1,444,800 636,000 1,776,150 Increase - current year 8,000 1
Less: Unrealized GP (12,000) (4,000) 1
Accounts Payable 123,600 148,000 30,000 241,600 Unamortized excess 89,250 1
Bonds Payable 240,000 120,000 360,000 Net Assets, at fair value, 3/31/09 445,250 1
Discount on Bonds Payable 9,600 1,200 (8,400) NCI Interest 30%
Common Stock 600,000 240,000 240,000 600,000 NCI 133,575 1
Retained Earnings from SRE 481,200 128,000 449,375
Non controlling interest 10,800 144,375 133,575
Total 1,444,800 636,000 821,625 821,625 1,776,150 Consolidated S/E
0 0 Common stock, Parent 600,000 1
Requirement 1: Consolidated R/E 449,375 1
Investment in S 325,500.00 1 NCI 133,575 1
Cash 325,500.00 1,182,950 1
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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 3
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
Buildings, net (16,800.00) (7,200.00) (24,000.00) (6,000.00)
Bonds Payable 6,720.00 2,880.00 9,600.00 1,200.00
Goodwill 7,140.00 3,060.00 10,200.00 13,200.00 3.00
Goodwill Allocation 70% 30% 2,550.00
15,750.00
Requirement 3:
Common Stock 240,000.00 1
Retained Earnings 120,000.00
Investment in S 252,000.00 1
NCI 108,000.00 1
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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 1
NCI 31,500.00 1
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COGS 6,000.00 1
Operating Expenses (Depreciation) 6,000.00 1
Interest Expense 1,200.00 1
Goodwill Impairment Loss 2,550.00 1
Buildings, net 6,000.00
Inventory 6,000.00
Equipment, net 12,000.00
Discount on Bonds Payable 1,200.00
Goodwill 2,550.00
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Dividend Income 25,200.00 1

NCI 10,800.00 1
Dividend Declared 36,000.00
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Downstream Sales
Upstream Sales SP Cost Profit SP Cost Profit
Beginning 0 0 0 0 0 0
Purchases 150,000.00 120,000.00 30,000.00 60,000.00 36,000.00 24,000.00
Total 150,000.00 120,000.00 30,000.00 60,000.00 36,000.00 24,000.00
Ending (90,000.00) (72,000.00) (18,000.00) (30,000.00) (18,000.00) (12,000.00)
COGS 60,000.00 48,000.00 12,000.00 30,000.00 18,000.00 12,000.00

Sales 150,000.00 Sales 60,000.00 3

COGS 150,000.00 COGS 60,000.00
# #

COGS 18,000.00 COGS 12,000.00 3 (calculation plus amount)

Inventory 18,000.00 Inventory 12,000.00
# #

NCI in CI 4,875.00 1
NCI 4,875.00

Net Income of S 44,000.00

Less: UGP (12,000.00) 1
Less: Amortization (15,750.00) 1
Adjusted Net Income of S 16,250.00 4,875.00 2

Accounts Payable 30,000.00 1

Accounts Receivable 30,000.00
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