Hammer Co. Folk Co.

ADJUSTMENTS
CONSOLIDATED
Dr. Cr.
BALANCE
Cash 160,000.00 10,000.00 170,000.00
Accounts Receivable 200,000.00 110,000.00 310,000.00 PARENT'S BOOKS
Inventory 400,000.00 80,000.00 20,000.00 500,000.00 Investment in Subsidiary 520,000.00
Investment in Subsidiary 520,000.00 520,000.00 0.00 Cash 520,000.00
Building, net 1,000,000.00 300,000.00 100,000.00 1,400,000.00
Goodwill 40,000.00 40,000.00 WORKING PAPER
Total Assets 2,280,000.00 500,000.00 2,420,000.00 Share Capital 200,000.00
Share Premium 100,000.00
Accounts Payable 100,000.00 20,000.00 120,000.00 Retained Earnings 180,000.00
Share Capital 1,000,000.00 200,000.00 200,000.00 1,000,000.00 Investment in Subsidiary 384,000.00
Share Premium 300,000.00 100,000.00 100,000.00 300,000.00 NCI 96,000.00
Retained Earnings 880,000.00 180,000.00 180,000.00 880,000.00
NCI 120,000.00 120,000.00 Inventory 20,000.00
Total liabilities and SHE 2,280,000.00 500,000.00 2,420,000.00 Building 100,000.00
Goodwill 40,000.00
Investment in Subsidiary 136,000.00
Consideration 520,000.00 FVNA 600,000.00 NCI (10k x 40%) 24,000.00
Less: BVNA 384,000.00 Multiply: NCI % 0.20
Allocated Excess 136,000.00 NCI 120,000.00
Less: FVAs 96,000.00
Goodwill 40,000.00

Hammer Co. and Subsidiary

Consolidated Statement of Financial Position
January 1, 20x1

Assets
Cash 170,000.00
Accounts Receivable 310,000.00
Inventory 500,000.00
Building, net 1,400,000.00
Goodwill 40,000.00
Total Assets 2,420,000.00

Liabilities and SHE

Liabilities
Accounts Payable 120,000.00
Total Liabilities 120,000.00
SHE
Share Capital 1,000,000.00
Share Premium 300,000.00
Retained Earnings 880,000.00
Parent's SHE 2,180,000.00
NCI 120,000.00
Total SHE 2,300,000.00
Total liabilities and SHE 2,420,000.00