Beruflich Dokumente
Kultur Dokumente
Amount Paid
For 80% of Sam
Implied Value:
240,000
/.8
300,000
Excess:
Goodwill:
300,000
(200,000)
(25,000)
75,000
75,000
Step 2: Why?
Implied Value
Common Stock
Retained Earnings
60,000
(10,000)
0
7,500
10,000
67,500
54,000
12,000
(16,000)
50,000
290,000
75,000
7,500
372,500
298,000
(16,000)
282,000
20%
20%
Michael Dauphinee
Problem 10-4
NCI Share
13,500
NCI
74,500
Number
JE1
Account
AP
Debit
Credit
5,000
AR
JE2
Sales
5,000
60,000
COGS
JE3
COGS
60,000
16,000
Inventories
JE4
Investment in Sam
16,000
12,000
COGS
JE5
12,000
2,000
8,000
Gain on Land
JE6
10,000
Bond Payable
Interest Income
Add: End Con
Investment in Sam Bonds
Add: Beg Unre
Interest Expense
Gain on Bonds
100,000
6,500
50,000
JE8
92,500
5,000
9,000
42,000
8,000
Preferred Stock
Beg NCI Preferred
100,000
Add: Constru
Common Stock
Beg Retained Earning - Sam
Goodwill
Beg NCI Common
Investment in Sam
200,000
50,000
75,000
JE10
100,000
65,000
260,000
13,500
10,000
Dividends
End NCI
12,000
11,500
Michael Dauphinee
Problem 10-4
Par
Income Statement
Sales
Income from Sam
Cost of Sales
Sam (80%)
$900,000
$50,000
$600,000
$300,000
$0
$140,000
$6,500
$0
Operating Expense
Interest Expense
Gain on Land
Gain on Bonds
Consolidated NI
Noncontrolling Share Preferred
Add: End Constructive Gain on Ret of Bon
Add: Beg Unrealized Gain Land
$208,500
$0
$10,000
$0
$0
$0
$0
$158,000
$90,000
$10,000
$0
$0
$0
$0
$0
$60,000
Retained Earnings
Add: Beg Unrealized Profit Inventory
Retained Earnings - Sam
Controlling Share of NI
Dividends
$132,000
$0
$158,000
$100,000
$0
$50,000
$60,000
$20,000
$190,000
$90,000
$5,500
$26,000
$100,000
$80,000
$160,000
$268,000
$282,000
$15,000
$20,000
$5,000
$60,000
$30,000
$420,000
$0
Interest Income
$92,500
$0
$1,014,000
$0
$0
$550,000
$24,000
$100,000
$0
$0
$700,000
$190,000
$1,014,000
$15,000
$45,000
$100,000
$100,000
$200,000
$90,000
$550,000
60,000
50,000
16,000
6,500
60,000
12,000
$0
f
e
f
j
j
$1,140,000
$0
$684,000
5,000
10,000
9,000
10,000
13,500
50,000
g
j
8,000
12,000
$298,500
$5,000
$20,000
$9,000
$181,500
$10,000
$13,500
$158,000
$132,000
$0
$158,000
$100,000
$190,000
d
e
5,000
16,000
g
I
42,000
260,000
12,000
8,000
$20,500
$41,000
$105,000
$124,000
$190,000
$688,000
$0
f
I
75,000
5,000
f
h
I
100,000
100,000
200,000
92,500
2,000 I
h
j
$708,000
$0
$75,000
$1,243,500
$34,000
$145,000
$0
$0
$700,000
$190,000
65,000
100,000
11,500
$708,000
$174,500
$1,243,500
Michael Dauphinee
Problem 10-4
Consolidation Key:
JE1=a
JE2=b
JE3=c
JE4=d
JE5=e
JE6=f
JE7=g
JE8=h
JE9=i
JE10=j