Question

Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies...

Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:

Problem
Company
Solution
Dairy
Assets
Cash & Receivables $ 144,000 $ 89,000
Inventory 228,000 109,000
Land 86,000 54,000
Buildings & Equipment (net) 401,000 234,000
Investment in Solution Dairy 285,300
Total Assets $ 1,144,300 $ 486,000
Liabilities & Stockholders’ Equity
Current Payables $ 65,000 $ 36,000
Long-Term Liabilities 295,300 163,000
Common Stock 397,000 70,000
Retained Earnings 387,000 217,000
Total Liabilities & Stockholders’ Equity $ 1,144,300 $ 486,000

  
The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,700. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $9,000 plus $1,200 accrued interest. Solution had recorded the accrued interest, but Problem had not.

Required
Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

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Statement Showing Consolidated Balance Sheet Worksheet: PROBLEM COMPANY AND SUBSIDARY Consolidated Balance Sheet Worksheet Pa

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