AssetsCash and receivablesInventoryLandBuildings and equipment (net)Investment in Solution DairyTotal AssetsLiabilities & EquityCurrent payablesLong-term liabilitiesCommon stockRetained earningsNCI in Net assets of Solution DairyTotal Liabilities & EquityPROBLEM COMPANY AND SUBSIDIARYConsolidated Balance Sheet WorksheetProblemCompanyS$Solution Dairy0 $0$0 $0 $Consolidation EntriesCreditDebit0 S0 $Consolidated0 $0 $00 Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solutionacquisition showed the following amounts:AssetsCash & Receivables.InventoryLandBuildings & Equipment (net)Investment in Solution DairyTotal AssetsLiabilities & Stockholders' EquityCurrent PayablesLong-Term LiabilitiesCommon StockRetained EarningsTotal Liabilities & Stockholders' EquityProblem Company$ 132,000211,00074,000409,000259,200$ 1,085,200SolutionDairy$ 88,000108,00054,000228,000$ 478,000$ 77,000254,200382,000372,000$ 30,000180,00066,000202,000$ 1,085,200 $ 478,000The fair value of the noncontrolling interest at the date of acquisition was determined to be $28,800. The full amount of the increaseover book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $9,000 plus $1,100 accruedinterest. Solution had recorded the accrued interest, but Problem had notRequired:Prepare a consolidated balance sheet worksheet.Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with aminus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts wheremultiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of theworksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.

Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution Dairy Total Assets Liabilities & Equity Current payables Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company S $ Solution Dairy 0 $ 0$ 0$ 0 $ Consolidation Entries Credit Debit 0 $ $ 0 Consolidated $ 0 S 0 0

Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution Dairy Total Assets Liabilities & Equity Current payables Long-term liabilities Common stock Retained earnings NCI in Net assets of Solution Dairy Total Liabilities & Equity PROBLEM COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet Problem Company S $ Solution Dairy 0 $ 0$ 0$ 0 $ Consolidation Entries Credit Debit 0 $ $ 0 Consolidated $ 0 S 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm Liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 354,750 242, 250 482,500 720,000 Sol Company Book Values 12/31 56,700 $ 312,000 174,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290, 800 (152,000) (189,000) (54,500) (54,500) (1,132,500) (532,500) (532,500) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common…
The following financial information was extracted from the accounting records of Eytan Ltd for the year end 30 June 2021: Issued share capital Authorised share capital Sales (Turnover) Gross margin on sales percentage Total asset turnover Return on total assets after interest and tax Net working capital Current ratio Acid test ratio Current liabilities (including Dividends payable) Debt to equity ratio (using interest bearing debt) Retained earnings at the beginning of the year Dividends proposed and paid Notes 500 Class A (Ordinary shares of R1 each) 500 000 Class A (Ordinary shares of R1 each) R100 000 15% 1.60 : 1 11.52 % R30 000 2.5:1 1.3:1 R20 000 0.55 : 1 (55%) R22 000 R4.40 per Class A share 1. Taxation is calculated at 28 % of Net Profit before Taxation. 2. Interest expense is 27.78 % of Net Profit after Taxation. REQUIRED: Prepare the Statement of Comprehensive Income and the Statement of Financial Position as at 30 June 2021. You are required to provide only the details which…
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