Name: Jerah Y.

Torrejos
Subject: ACP312 (4965)

Let's Analyze

Consideration: Goodwill:
30,000 shares, 40 per share Consideration 1,200,000
= 1,200,000 Net Assets (930,000)
Goodwill 270,000
40 per share
Investment in Susidiary 1,200,000
Common Stock, 5 par 150,000
Share Premium 1,050,000

Retained Earnings 50,000

Cash 50,000

Share Premium 20,000

Cash 20,000

Common Stock 400,000

Share Premium 280,000
Retained Earnings 200,000
Goodwill 270,000
Land 50,000
Investment in Subsidiary 1,200,000

Palisade and Subsidiary

Consolidated Financial Statement
January 1, 2011

Assets
Current Assets 310,000
Equipment 920,000
Buildings 800,000
Land 350,000
Goodwill 270,000
TOTAL ASSETS 2,650,000

Liabilities and Equity

Current Liabilitites 220,000
Common Stock 1,150,000
Additional Paid-in Capital 1,130,000
Retained Earnings 150,000
 TOTAL LIABILITIES AND EQUITY 2,650,000

Eliminations
PARENT SUBSIDIARY DEBIT CREDIT CONSOLIDATED
Current Assets 260,000 120,000 70,000 310,000
Equipment 440,000 480,000 920,000
Buildings 600,000 200,000 800,000
Land 100,000 200,000 50,000 350,000
Goodwill 270,000 270,000
Investment in Subsidiary 1,200,000 1,200,000 -
TOTAL ASSETS 2,600,000 1,000,000 320,000 1,270,000 2,650,000

Current Liabilities 100,000 120,000 220,000

Common Stock: -
Parent 1,150,000 1,150,000
Subsidiary 400,000 400,000 -
Share Premium: -
Parent 1,150,000 20,000 1,130,000
Subsidiary 280,000 280,000 -
Retained Earnings: -
Parent 200,000 50,000 150,000
Subsidiary 200,000 200,000 -

TOTAL LIABILITIES
AND EQUITY
2,600,000 1,000,000 - 950,000 2,650,000