Homework Answers
| PENCIL
COMPANY CONSOLIDATED BALANCE SHEET |
|
| CASH (205000+56000-92800) | $168,200 |
| OTHER ASSETS (406000+133000) | 539000 |
| TOTAL DEBITS | $707,200 |
| CURRENT LIABILITY (93000+73000) | $166,000 |
| MINORITY INTEREST(56000+133000-73000)20% | 23,200 |
| COMMON STOCK | 296000 |
| RETAINED EARNINGS | 222000 |
| TOTAL CREDITS | $707,200 |
CALCULATION OF GOODWILL :
NET ASSETS (189000 - 73000)80% = 92800
CASH FOR ACQUIRED = 92800
GOODWILL = NIL
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