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Problem 3-1 The two following separate cases show the financial position of a parent company and its subsidiary company on NoP COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 PS Eliminations ons Company Company Dr. Cr. N

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Answer #1
Particulars P company S company Eliminations Non-controlling Interest Consolidated Balance
Dr Cr
Current Assets     8,87,300 2,60,000             11,47,300
Investment in S company     1,90,800 1,90,800                            -  
Difference between Implied & Book Value      64,440      64,440                            -  
Long-Term Assets 13,87,400 3,96,700      64,440             18,48,540
Other Assets        89,500       39,800               1,29,300
Total Assets 25,55,000 6,96,500             31,25,140
Current Liabilities     6,41,800 2,67,400               9,09,200
Long-term liabilities     8,51,900 2,88,700             11,40,600
Common Stock                            -  
P company     5,96,800               5,96,800
S company 1,79,100 1,79,100                            -  
Retained Earnings                            -  
P company     4,64,500               4,64,500
S company     -38,700      38,700                            -  
Non-controlling Interest      14,040                     14,040                   14,040
Total Liabilities & Equity 25,55,000 6,96,500 3,07,980 3,07,980             31,25,140
Acquired Non-controlling Total
90% 10%
Common Stock        1,61,190        17,910        1,79,100
Retained          -34,830         -3,870          -38,700
Book Value        1,40,400
Fair Value of consideration transferred        1,90,800
Add Fair Value of Non-Controlling Interest            14,040
Less Fair Value of Net Assets at acquition        1,40,400
Goodwill            64,440
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