Department of Accounting and finance

ASSESMENT OF ADVANCED FINANCIAL ACCOUNTING

 The transaction will be recorded on the books of

Pacific an as follows:
Cash …………………………… ............. 85,000
Accounts payable ………………… 180,000
Common shares ………………..…. 435,000
Additional paid in Capital................. 70,000
 Consolidated Balance Sheet
Pacific an BALANCE SHEETS
December 31, 2014
 Cash (110,000+85,000)…………...………………….…………… $195,000

Accounts receivable& Inventory ( 750,0000 + 190,000) … 940,000

PP and equipment (1,400,000+450,000) ……….…... 1,850,000

Trademark (300,000+ 160,000) .......... 460,000
Total assets …………………………………….... $3,445,000
Accounts payable (500,000+180,000) ……………….….$ 680,000

Common shares* (400,000+200,000) ………….…...… 600,000

Retained earnings (1,185,000+435,000)…………… 1,620,000

Additional Paid in Capital (475,000+70,000)........... 545,000

Total liabilities and shareholders’ equity ………………... $3,445,000

 Consolidation Worksheet on the date of Acquisition
Balance sheet
December 31, 2014

Pacifican Seguros Adjustment

Dr/Cr Dr/Cr Dr/Cr
Cash $110,000 $85,000 (25,000.00)
A/ receivable &Inventory 750,000 190,000 (4000,000.00)
Property ,Plant & equipt . 1,400,000 450,000 (800.000.00)
-

Trademark 300,000 160,000 1000.000.00

A/payable ($500,000) ($180,000)
—
-
Common shares (400,000) (200,000) S
Retained earnings (1,185,000) (435,000) S
- - -
PREPARED BY KIDANU HINKOSA

SUMMITED TO DR EYOB