Name: Jerah Y.

Torrejos
Subject: ACP312 (4965)

Let's Check

Entry to record the acquisition:

Investment in Subsidiary- Sombilon Co. 165,000
Cash 165,000

Working Paper Eliminating Entries:

Common Stock- Sombilon Co. 75,000
Share Premium- Sombilon Co. 45,000
Retained Earnings- Sombilon Co. 30,000
Goodwill* 15,000
Investment in Subsidiary- Sombilon Co. 165,000

*Goodwill:
Consideration 165,000
Net Asset (150,000)
Goodwill 15,000

Consolidated Working Paper

Eliminations
PARENT SUBSIDIARY DEBIT CREDIT CONSOLIDATED
Cash 180,000 - 180,000
Accounts Receivable 60,000 48,000 108,000
Inventory 75,000 30,000 105,000
PPE 270,000 237,000 507,000
Goodwill - 15,000 15,000
Investment in Subsidiary 165,000 - 165,000 -
TOTAL ASSETS 750,000 315,000 15,000 165,000 915,000

Accounts Payable 420,000 165,000 585,000

Common Stock:
Parent 150,000 150,000
Subsidiary 75,000 75,000 -
Share Premium:
Parent 120,000 120,000
Subsidiary 45,000 45,000 -
Retained Earnings:
Parent 60,000 60,000
Subsidiary 30,000 30,000 -

TOTAL LIABILITIES
AND EQUITY
750,000 315,000 150,000 - 915,000