Sheet1
Advanced Accounting
Controlling interest FV 2,100,000 Controlling interest FV 2,100,000
Noncontrolling interest FV 1,200,000 Noncontrolling interest FV 1,200,000
Total FV 3,300,000 Total FV 3,300,000
BV of SMC 2,150,000 FV of SMC 2,750,000
Excess 1,150,000 Excess 550,000
Life Amortization
Patent 100,000 4 25,000
Buildings 200,000 10 20,000
Equipment 300,000 5 60,000
Goodwill 550,000 Indefinite
Total 1,150,000 105,000
CI NCI Totals
Fair value of price paid 2,100,000 1,200,000 3,300,000
1/1/16 Fair value of Eagle 1,650,000 1,100,000 2,750,000
Goodwill 450,000 100,000 550,000
Consolidating Entries Consolidated
DES, Inc. SMC, Inc. DR CR NCI Totals
Revenues (2,400,000) (430,000) (2,830,000)
Expenses 1,000,000 195,000 E 80,000 1,275,000
E 25,000 25,000
Dividend Income (30,000) - I 78,000 48,000
Net income (1,430,000) (235,000) (1,482,000)
To NCI (52,000) 52,000
To CI (1,430,000)
Retained earnings 1/1 (3,400,000) (1,800,000) S 1,800,000 (3,400,000)
Net income (1,430,000) (235,000) (1,430,000)
Dividends paid 80,000 50,000 D 30,000 20,000 80,000
Retained earnings 12/31 (4,750,000) (1,985,000) (4,750,000)
Cu
ent Assets 1,300,000 50,000 1,350,000
Investment in SMC 2,100,000 - D 30,000 S 1,740,000 (237,000)
A1 297,000
A2 330,000
I
Patent - 650,000 A1 75,000 E 25,000 700,000
Buildings 2,220,000 850,000 A1 180,000 E 20,000 3,230,000
Equipment (net) 4,335,000 2,000,000 A1 240,000 E 60,000 6,515,000
Goodwill A2 550,000 550,000
Total assets 9,955,000 3,550,000 12,108,000
Accounts Payable (1,005,000) (115,000) (1,120,000)
Notes Payable - (350,000) (350,000)
Common Stock (1,800,000) (1,000,000) S 1,000,000 (1,800,000)
NCI S 1,160,000
A1 198,000
A2 220,000
Additional Paid-In Capital (2,400,000) (100,000) 100,000 (1,578,000) (1,610,000)
Retained earnings 12/31 (4,750,000) (1,985,000) (4,750,000)
Total liabilities and equity (9,955,000) (3,550,000) 4,158,000 4,080,000 (9,630,000)
S entry
Common Stock 1,000,000
Retained earnings 1/1 1,800,000
Additional Paid-In Capital 100,000
Investment in SMC 1,740,000
XXXXXXXXXXNCI 1,160,000
A1 entry
Patent 75,000
Buildings 180,000
Equipment 240,000
Investment in SMC 297,000
NCI 198,000
A2 entry (comes from Table 3 above)
Goodwill 550,000
Investment in Eagle 330,000
NCI 220,000
I entry
Equity in earnings 78,000
Investment in SMC 78,000
D entry
Investment in SMC 30,000
Dividends paid by SMC 30,000
E entry
Depreciation expense 80,000
Amortization Expense 25,000
Patent 25,000
Buildings 20,000
Equipment 60,000