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    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
     
    #1

    Jul 15, 2007, 01:05 PM
    Assignment of Differential in Workpaper
    a. Complete a consolidated balance sheet workpaper for January 1, 20X4.
    b. Prepare a consolidated balance sheet in good form.

    Teresa Corporation purchased all the voting shares of Sally Enterprises on January 1, 20X4. Balancesheet amounts for the companies on the date of acquisition were as follows:

    Teresa Sally
    Corporation Enterprises
    Cash and Receivables $ 40,000 $ 20,000
    Inventory 95,000 40,000
    Land 80,000 90,000
    Buildings and Equipment 400,000 230,000
    Investment in Sally Enterprises 290,000
    Total Debits $905,000 $380,000
    Accumulated Depreciation $175,000 $ 65,000
    Accounts Payable 60,000 15,000
    Notes Payable 100,000 50,000
    Common Stock 300,000 100,000
    Retained Earnings 270,000 150,000
    Total Credits $905,000 $380,000

    Sally Enterprises’ buildings and equipment were estimated to have a market value of $175,000 on January1, 20X4. All other items appeared to have market values approximating current book values.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #2

    Jul 15, 2007, 01:09 PM
    Please refer to THIS ANNOUNCEMENT
    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
     
    #3

    Jul 25, 2007, 01:48 PM
    Oooops Sorry wrong question:

    Kasper Corporation acquired controlling interest over Timmin Company on January 1, 20X7, and a consolidated balance was prepared. Partial balance sheet data for Kasper, Timmin, and the consolidated entity follow:

    KASPER CORPORATION AND TIMMIN COMPANY
    Partial Balance Sheet Data
    January 1, 20X7
    Kasper Timmin Consolidated
    Item Corporation Company Entity
    Cash and Accounts Receivable $180,000 $ 60,000 $ 240,000
    Inventory 200,000 100,000 328,000
    Land 100,000 50,000 167,000
    Buildings and Equipment (net) 400,000 150,000 588,000
    Investment in Timmin Stock ?
    Total $ ? $360,000 $1,323,000
    178 Chapter 4 Consolidation as of the Date of Acquisition
    Baker−Lembke−King:
    Advanced Financial
    Accounting, Sixth Edition
    4. Consolidation as of the
    Date of Acquisition
    Text © The McGraw−Hill
    Companies, 2004
    Accounts Payable $ 70,000 $ 40,000 $ 110,000
    Bonds Payable 300,000 300,000
    Common Stock ? 150,000 250,000
    Retained Earnings 567,000 170,000 ?
    Noncontrolling Interest 96,000
    Total $ ? $360,000 $1,323,000

    The fair value of Timmin's land was $80,000, and the fair value of its buildings and equipment was $220,000 at the date of acquisition.
    Required
    a. What amount of retained earnings is reported in the consolidated balance sheet? $567K
    b. What percentage ownership of Timmin does Kasper hold? 70% (1-(96K/(150K+170K))
    c. What is the fair value of inventory held by Timmin at January 1, 20X7? $140K
    d. What is the fair value of Timmin's net assets at January 1, 20X7?
    e. What amount did Kasper pay to acquire its ownership in Timmin? $460K
    f. Give all eliminating entries needed to prepare the consolidated balance sheet for Kasper and Timmin.

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