Balance Sheet Worksheet
Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:
| Power Company | Pleasantdale Dairy |
Cash and Receivables | $ 130,000 | $ 70,000 |
Inventory | 210,000 | 90,000 |
Land | 70,000 | 40,000 |
Buildings and Equipment (net) | 390,000 | 220,000 |
Investment in Pleasantdale Stock | 270,000 |
|
Total Assets | $1,070,000 | $420,000 |
Current Payables | $ 80,000 | $ 40,000 |
Long-Term Liabilities | 200,000 | 100,000 |
Common Stock | 400,000 | 60,000 |
Retained Earnings | 390,000 | 220,000 |
Total Liabilities and Stockholders’ Equity | $1,070,000 | $420,000 |
The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $8,000 plus $900 accrued interest. Pleasant-dale had recorded the accrued interest, but Power had not.
Required
Prepare and complete a consolidated balance sheet worksheet.
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