Using Microsoft Excel, prepare CONSOLIDATION WORKSHEET (spreadsheet) for Salmon
ID: 2455708 • Letter: U
Question
Using Microsoft Excel, prepare CONSOLIDATION WORKSHEET (spreadsheet) for Salmon and Perch. See project details below. On December 31, 20X8, Defoe Corporation acquired 80 percent of Crusoe Company's common stock for $104,000 cash. The fair value of the non-controlling interest at that date was determined to be $26,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Defoe Corporation
Crusoe Company
Cash
$90,000
$20,000
Accounts Receivable
80,000
35,000
Inventory
100,000
40,000
Land
40,000
60,000
Buildings and Equipment
300,000
100,000
Less: Accumulated Depreciation
-100,000
-40,000
Investment in Crusoe
104,000
Total Assets
$614,000
$215,000
Accounts Payable
$120,000
$30,000
Mortgage Payable
200,000
100,000
Common Stock
50,000
25,000
Retained Earnings
244,000
60,000
Total Liabilities and Stockholder's Equity
$614,000
$215,000
On that date, the book values of Crusoe's assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and buildings and equipment, which had a fair value of $100,000. At December 31, 20X8, Defoe reported accounts payable of $15,000 to Crusoe, which reported an equal amount in its accounts receivable.
Requirements: Provide the consolidating entries needed to prepare a consolidated balance sheet immediately following the business combination. Prepare a consolidated balance sheet worksheet.
Defoe Corporation
Crusoe Company
Cash
$90,000
$20,000
Accounts Receivable
80,000
35,000
Inventory
100,000
40,000
Land
40,000
60,000
Buildings and Equipment
300,000
100,000
Less: Accumulated Depreciation
-100,000
-40,000
Investment in Crusoe
104,000
Total Assets
$614,000
$215,000
Accounts Payable
$120,000
$30,000
Mortgage Payable
200,000
100,000
Common Stock
50,000
25,000
Retained Earnings
244,000
60,000
Total Liabilities and Stockholder's Equity
$614,000
$215,000
Explanation / Answer
(1) Jouranl entries
Consolidated Balance Sheet
(3) Dofoe Corporation and Subsidiary Consolidated Balance Sheet
Cash $110,000
Accounts recievable 100,000
Inventory 145,000
Land 100,000
Buildings & Equipment $440,000
Less: Accumulated dep ($140,000) 300,000
$755,000
Accounts payable $135,000
Mortagage payable 300,000
Stockholder's Equity :
Controlling interest:
Common stock $50,000
Retained earnings 244,000
total controlling interest $294,000
Non controlling interest 26,000
Total stokholder's Equity $320,000
Total stockholder's Equity And liabilties $755,000
Description Debit Credit Common stock - Crusoe company $25,000 Retained earnings $60,000 Differential $45,000 To Investment in Crusoe -company stock $104,000 To Non constrolling interest $26,000 Inventory $5,000 Building $ Equipment $40,000 To Differential $45,000Related Questions
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