Acct 3533 Advanced Accounting

Fall 20198
Consolidated Financial Statement
Journal Entry Guide

Organize the facts

Determine the total purchase price

Determine if a control premium was paid
Determine the fair value of "Identified net assets"
Determine the amount, if any, of goodwill
Determine the allocation of goodwill between the parent and NCI
Determina the annual amortization of any premium paid for assets or liabilities
Watch out for dates of the acquistion and the date of the consolidation
Remember BOY applies to the S and A entries
I & D entries can be combined or done separately

100% owned Sub Less than 100%

S Common Stock BOY Common Stock BOY

APIC BOY APIC BOY
Retained Earnings BOY Retained Earnings BOY
Equity Investment Equity Investment
NCI

A Assets BOY Assets BOY

Liabilities BOY Liabilities BOY
Equity Investment Equity investment
NCI
(Consider allocation of GW)
I Equity income Equity Income
Equity Investment NI for NCI
Dividends
D Equity Investment Equity Investment
Dividends NCI

E Amort/Depr Amort/Depr
Assets Assets

P A/P A/P
 A/R A/R

G*

TI

G
Less than 100% Downstream Less than 100% Upstream

Common Stock BOY Common Stock BOY

APIC BOY APIC BOY
Retained Earnings BOY Retained Earnings BOY
Equity Investment Equity Investment
NCI NCI

Assets BOY Assets BOY

Liabilities BOY Liabilities BOY
Equity investment Equity investment
NCI NCI
(Consider allocation of GW) (Consider allocation of GW)
Equity Income Equity Income
NI for NCI NI for NCI
Dividends Dividends
Equity Investment Equity Investment
NCI NCI

Amort/Depr Amort/Depr
Assets Assets

A/P A/P
 A/R A/R

Equity Investment Equity Investment

COGS NCI
COGS

Sales Sales
COGS COGS

COGS COGS
Inventory Inventory
tion of GW)