Homework Answers
| Problem Company ($) | Solution Dairy ($) | Consolidation Entries | Consolidated | ||
| DR | CR | ||||
| Cash & Receivables | 1,30,000 | 70,000 | 8,900.0 | 1,91,100.0 | |
| Inventory | 2,10,000 | 90,000 | 3,00,000.0 | ||
| Land | 70,000 | 40,000 | 20,000.0 | 1,30,000.0 | |
| Building & Equipment (net) | 3,90,000 | 2,20,000 | 6,10,000.0 | ||
| Investment in solution dairy | 2,70,000 | 2,70,000.0 | - | ||
| Total Assets | 10,70,000 | 4,20,000 | 20,000.0 | 2,78,900.0 | 12,31,100.0 |
| Current Payables | 80,000 | 40,000 | 8,900.0 | 1,11,100.0 | |
| Long-Term Liabilities | 2,00,000 | 1,00,000 | - | 3,00,000.0 | |
| Common Stock | 4,00,000 | 60,000 | 60,000.0 | 4,00,000.0 | |
| Retained Earnings | 3,90,000 | 2,20,000 | 2,20,000.0 | 3,90,000.0 | |
| Non Controlling Interest in Solution Dairy | 30,000.0 | 30,000.0 | |||
| Total Liabilites and stockholder's equity | 10,70,000 | 4,20,000 | 2,88,900.0 | 30,000.0 | 12,31,100.0 |
| Notes -Calculation of Land Value increase | Value $ | ||||
| Total Assets Value of Solution Dairy | 4,20,000 | ||||
| Less:- Current Payable | 40,000 | ||||
| Long-Term Liabilities | 1,00,000 | ||||
| Net Value of Solution Dairy | 2,80,000 | ||||
| Less:- Investment by problem solution | 2,70,000 | ||||
| Net Value | -10,000 | ||||
| NCI Value | 30,000 | ||||
| Value of land increse in Solution Dairy | 20,000 | ||||
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E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets...
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