David,& subsidiary

Consolidation Worksheet
July 1,2006- Date of combination
Balance Sheet
SN

Eliminations & Adjustments

Account Title

Consolidated
Balance Sheet

David Co.

Carol Co.

Debit

$23,750,000

$8,000,000

(El)*1000000

$32,750,000

2 Plant assets

26,000,000

22,000,000

(El) 4000000

52,000,000

3 Investment in Carol Company

30, 250000

1 Current assets

(El) 30,250,000

4 Good will
5

(El)**3, 611, 111

80,000,000

30,000,000

6 Liabilities

15,000,000

5,000,000

7 Common stock, $ 10 par

28,000,000

10,000,000

8 Additional paid-in capital

25,000,000

1,000,000

9 Retained earnings

14,000,000

14,000,000

Total Assets

Total equities

80,000,000

30,000,000

3,611,111

30,250,000

$88,361,111
$20,000,000

(El) 10000000

27,500,000

(El)

1000000

23,500,000

(El) 14000000

14,000,000

10 Minority (non controlling) interest

11

Credit

25,000,000

(El)***3,361111

3,361,111

3,361,111

$88,361,111

*(El) elimination and adjustment entry : to adjust the net assets of the subsidiary to their fair value
: to temporarily eliminate stockholders' equity accounts of the subsidiary and investment accounts of the parent
** Good Will is accounted for Under Entity Concept
*** Minority Interset is dtermined under Entity Concept