Reference no: EM132452961

Consolidation Worksheet and Entries

• J Corporation acquired 100 percent of S Company on January 1, 20X5, for $350,000. Following are selected account balances from J Corporation and S Company as of December 31, 20X5:

Additional Information:

Point 1: On January 1, 20X5 the fair market value of S's assets equaled their book value with the exception of Plant Assets (with an estimated economic life of six years), which had a fair market value in excess in S's depreciable assets of $33,000.

Point 2: J used the equity method in accounting for its investment in S.

Point 3: Detailed analysis of receivables and payables showed that S owed J $10,000 on December 31, 20X5.

Required:

Question 1: Give all journal entries recorded by J with regard to its investment in S during 20X5.

Question 2: Give all consolidating entries needed to prepare a full set of consolidated financial statements for 20X5.

Question 3: Prepare a three-part consolidation worksheet as of December 31, 20X5.

• Use Excel formulas to make or evidence each of your calculations of all dollar amounts. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file to complete the assignment.