ACT470 CSUG Mod 8 Accounting Consolidated Financials Worksheet

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OEFWbfr7

Business Finance

ACT470

Colorado State University Global

Description

Part 2: Problem Solving - Consolidated Financials

Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at $480,000 over book value. The excess is assigned as follows:

Asset Fair Value Useful Life
Patent $320,000 8 years
Goodwill 160,000 Indefinite

70% of the goodwill is allocated to the parent.

Included in the attached Excel spreadsheet are the pre-consolidation financial statements for both the parent and the subsidiary.

Submission Requirements:

Using the ACT470_Mod08-Portfolio_Option01.xlsx Excel spreadsheet in the Module 8 folder:

  • Prepare the consolidated financial statements at 12/31/X6 by placing the appropriate entries in their respective debit/credit column cells.
  • Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is a [C], [E], [A], [D] or [I]entry.
  • Use Excel formulas to derive the Consolidated column amounts and totals.
    • Using the “Home” key in Excel, go to the “Styles” area and highlight the [C], [E], [A], [D] or [I]entry cells in different shades.

Unformatted Attachment Preview

ACT470-Portfolio-Option 1 Parent Income Statement: Sales Cost of Goods sold Gross profit Income (loss) from subsidiary Operating expenses Net Income Consolidated NI attrib to NCI Consolidated NI attrib to CI Subsidiary 6,000,000 (4,000,000) 2,000,000 112,000 (1,500,000) 612,000 2,000,000 (1,200,000) 800,000 Statement of Ret Earnings: BOY retained earnings Net income Dividends EOY retained earnings 1,978,000 612,000 (190,000) 2,400,000 970,000 200,000 (100,000) 1,070,000 Balance Sheet: Cash Accounts receivable Inventory Equity investment 200,000 600,000 800,000 1,400,000 120,000 400,000 880,000 2,000,000 1,200,000 5,000,000 2,600,000 500,000 1,100,000 600,000 400,000 2,400,000 200,000 600,000 280,000 450,000 1,070,000 5,000,000 2,600,000 PPE, net Patent Goodwill Current liabilities Long-term liabilities Common stock APIC Retained earnings Noncontrolling interest Consolidation Entries Dr (600,000) 200,000 0 Consolidation Entries Cr Consolidated 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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Explanation & Answer

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ACT470-Portfolio-Option 1

Consolidation Entrie
Parent
Income Statement:
Sales
Cost of Goods sold
Gross profit
Income (loss) from subsidiary
Operating expenses
Net Income
Consolidated NI attrib to NCI
Consolidated NI attrib to CI

6,000,000
(4,000,000)
2,000,000
112,000
(1,500,000)
612,000

...


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