Dinesh bhai 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 & ReceivablesInventoryLandBuildings & Equipment (net)Investment in Solution DairyTotal AssetsLiabilities & Stockholders' EquityCurrent PayablesLong-Term LiabilitiesCommon StockRetained EarningsTotal Liabilities & Stockholders' EquityProblemCompany$ 130,000216,00077,000390,000280,800$ 1,093,800$ 61,000250,800396,000386,000$ 1,093,800SolutionDairy$ 75,00095,00044,000232,000$ 446,000$ 38,000116,00080,000212,000$ 446,000The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increaseover book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accruedinterest. Solution had recorded the accrued interest, but Problem had not.Required:Prepare a consolidated balance sheet worksheet.Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with aminus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts wheremultiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of theworksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.AssetsCash and receivablesInventoryLandBuildings and equipment (net)Investment in Solution DairyTotal AssetsLiabilities & EquityCurrent payablesAnswer is not complete.PROBLEM COMPANY AND SUBSIDIARYConsolidated Balance Sheet WorksheetProblemCompanySolutionDairyConsolidation EntriesConsolidatedDebitCredit$ 130,000 $ 75,000$13,400$ 191,600216,00095,000311,00077,00044,0004,000125,000390,000232,000622,000280,000280,0000$ 1,093,000$ 446,000 $4,000$293,400 $ 1,249,600Long-term liabilitiesCommon stockRetained earnings$61,000250,000$38,000116,000396,00080,000386,000212,000$13,400 $112,400366,00080,000556,000212,000810,000NCI in Net assets of Solution Dairy64,80064,800Total Liabilities & Equity$ 1,093,000 $ 446,000$0$ 370,200$ 1,909,200

Consolidated balance:The consolidated balance is the document that will show the entire situation of…

Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 1,093,800 $446,000 $ 61,000 $ 38,000 250,800 116,000 80,000 212,000 396,000 386,000 $1,093,800 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet.

Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Assets Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 130,000 216,000 77,000 390,000 280,800 Solution Dairy $ 75,000 95,000 44,000 232,000 $ 1,093,800 $446,000 $ 61,000 $ 38,000 250,800 116,000 80,000 212,000 396,000 386,000 $1,093,800 $ 446,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,200. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $12,000 plus $1,400 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required: Prepare a consolidated balance sheet worksheet.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 21BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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