Worksheet for Wholly Owned Subsidiary
Gold Enterprises acquired 100 percent of Premium Builders’ stock on December 31, 20X4. Balance sheet data for Gold and Premium on January 1, 20X5, are as follows:
| Gold Enterprises | Premium Builders |
Cash and Receivables | $ 80,000 | $ 30,000 |
Inventory | 150,000 | 350,000 |
Buildings and Equipment (net) | 430,000 | 80,000 |
Investment in Premium Stock | 167,000 |
|
Total Assets | $827,000 | $460,000 |
Current Liabilities | $100,000 | $110,000 |
Long-Term Debt | 400,000 | 200,000 |
Common Stock | 200,000 | 140,000 |
Retained Earnings | 127,000 | 10,000 |
Total Liabilities and Stockholders’ Equity | $827,000 | $460,000 |
At the date of the business combination, Premium’s cash and receivables had a fair value of $28,000, inventory had a fair value of $357,000, and buildings and equipment had a fair value of $92,000.
Required
a. Give all eliminating entries needed to prepare a consolidated balance sheet on January 1, 20X5.
b. Complete a consolidated balance sheet worksheet.
c. Prepare a consolidated balance sheet in good form.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.