Prepare consolidated worksheet

Assignment Help Accounting Basics

Reference no: EM13903984

On January 1, 2012, the Parent Company paid $80,000,000 cash to acquire all of the Subsidiary Compan'y common stock. On

December 31, 2012, the trial balances for the two companies were as follows:

	Parent company	Subsidiary	Subsidiary
	book value	book value	fair value

Cash	2,000,000	1,000,000	1,000,000
Accounts Receivable	3,000,000	2,000,000	2,000,000
Inventory	6,000,000	5,000,000	4,000,000
Equipment (net)	15,000,000	10,000,000	14,000,000
Building (net)	60,000,000	20,000,000	40,000,000
Land	40,000,000	15,000,000	30,000,000
Investment in Subsidiary	81,000,000
Costs of Goods Sold	25,000,000	10,000,000
Depreciation Expense	4,000,000	2,000,000
Other Expenses	11,000,000	3,000,000
Dividends Declared	5,000,000	1,000,000
Total Debits	252,000,000	69,000,000	91,000,000


Accounts Payable	5,000,000	2,000,000	2,000,000
Taxes Payable	8,000,000	4,000,000	4,000,000
Notes Payable	17,000,000	6,000,000	5,000,000
Bonds Payable	30,000,000	7,000,000	8,000,000
Common Stock	40,000,000	6,000,000
Additional Paid-in Capital	80,000,000	10,000,000
Retained Earnings	10,000,000	14,000,000
Sales Revenue	60,000,000	20,000,000
Income from Subsidiary	2,000,000
Total Credits	252,000,000	69,000,000	19,000,000

The remaining usable life of the Equipment is 4 years.

The remaining usable life of the Building is 10 years.

Subsidiary Company owers $1,000,000 to Parent Company.

Required

1. Prepare Consolidated Worksheet

Reference no: EM13903984

Questions Cloud

The relationship between unemployment and inflation rate : The Relationship between Unemployment and Inflation Rate,The Poverties in China, India and other Developing Countries

Describe the changes in the cost structure : CAN U PLEASE WRITE A TWO REPORTS AS WELL BY DIVIDING TWO QUESTION AND ANSWER EACH AND EXPLAINING WHO DID WHICH QUESTION AND EXPLAIN IN BRIEF ABOUT THE ANSWER AND EXPLATION .

Compute the activity-based overhead rate for each pool : What is the benefit to Acme Manufacturing of applying activity-based costing to its R&D activity for both in-house and outside charging purposes?

Calculated using 4d entertainment’s existing costing system : Using activity-based costing (ABC), calculate the profitability of the Zenith and Pinnacle models. 2. Explain briefly why these numbers differ from the profitability of the Zenith and Pinnacle models.

Prepare consolidated worksheet : Prepare Consolidated Worksheet

Demand curve facing the firm is relatively elastic : Does this mean that the demand curve facing the firm is likely to be relatively elastic or relatively inelastic? What does this imply about the ability of the firm to ‘mark up’ its price above marginal cost?

Prepare a trial balance : Open Ledger accounts (T-format or Running-balance format) for the above accounts and enter the balances as per the Trial Balance.Record the transactions listed below in the General Journal, using the accounts listed in the Trial Balance.

Journalize the transactions for the month : Journalize the transactions for the month and Compute cost of goods manufactured.

Discuss economic theory and the available empirical evidence : Discuss whether economic theory and the available empirical evidence justifies high executive compensation.

User Account

All Pages