ACT470 CSUG Mod 8 Accounting Consolidated Financials Worksheet Part 2: Problem Solving – Consolidated FinancialsAssume that on 1/1/X0, a parent company acq

ACT470 CSUG Mod 8 Accounting Consolidated Financials Worksheet Part 2: Problem Solving – Consolidated FinancialsAssume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at $480,000 over book value. The excess is assigned as follows:

Asset
Fair Value
Useful Life

Patent
$320,000
8 years

Goodwill
160,000
Indefinite

70% of the goodwill is allocated to the parent. Included in the attached Excel spreadsheet are the pre-consolidation financial statements for both the parent and the subsidiary.Submission Requirements:Using the ACT470_Mod08-Portfolio_Option01.xlsx Excel spreadsheet in the Module 8 folder:
Prepare the consolidated financial statements at 12/31/X6 by placing the appropriate entries in their respective debit/credit column cells.
Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is a [C], [E], [A], [D] or [I]entry.
Use Excel formulas to derive the Consolidated column amounts and totals.

Using the “Home” key in Excel, go to the “Styles” area and highlight the [C], [E], [A], [D] or [I]entry cells in different shades. ACT470-Portfolio-Option 1
Parent
Income Statement:
Sales
Cost of Goods sold
Gross profit
Income (loss) from subsidiary
Operating expenses
Net Income
Consolidated NI attrib to NCI
Consolidated NI attrib to CI
Subsidiary
6,000,000
(4,000,000)
2,000,000
112,000
(1,500,000)
612,000
2,000,000
(1,200,000)
800,000
Statement of Ret Earnings:
BOY retained earnings
Net income
Dividends
EOY retained earnings
1,978,000
612,000
(190,000)
2,400,000
970,000
200,000
(100,000)
1,070,000
Balance Sheet:
Cash
Accounts receivable
Inventory
Equity investment
200,000
600,000
800,000
1,400,000
120,000
400,000
880,000
2,000,000
1,200,000
5,000,000
2,600,000
500,000
1,100,000
600,000
400,000
2,400,000
200,000
600,000
280,000
450,000
1,070,000
5,000,000
2,600,000
PPE, net
Patent
Goodwill
Current liabilities
Long-term liabilities
Common stock
APIC
Retained earnings
Noncontrolling interest
Consolidation Entries
Dr
(600,000)
200,000
0
Consolidation Entries
Cr
Consolidated
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

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