Exercise 5-5 (Algo) Balance Sheet Worksheet LO 5-2Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets ofthe two companies immediately after the Solution acquisition showed the followingamounts:AssetsCash & ReceivablesInventoryLandBuildings & Equipment (net)Investment in Solution DairyTotal AssetsLiabilities & Stockholders' EquityCurrent PayablesLong-Term LiabilitiesCommon StockRetained EarningsTotal Liabilities & Stockholders' EquityProblemCompanySolutionDairy$ 131,000$ 86,000106,000227,00079,000 53,000408,000 235,000270,900$ 1,115,900 $ 480,000$ 71,000264,900395,000385,000$ 39,000160,00065,000216,000$ 1,115,900 $ 480,000The fair value of the noncontrolling interest at the date of acquisition was determinedto be $30,100. The full amount of the increase over book value is assigned to land heldby Solution. At the date of acquisition, Solution owed Problem $10,000 plus $900accrued interest. Solution had recorded the accrued interest, but Problem had not.Required:Prepare a consolidated balance sheet worksheet.Note: Values in the first two columns (the "parent" and "subsidiary" balances) thatare to be deducted should be indicated with a minus sign, while all values in the"Consolidation Entries" columns should be entered as positive values. For accountswhere multiple adjusting entries are required, combine all debit entries into oneamount and enter this amount in the debit column of the worksheet. Similarly,combine all credit entries into one amount and enter this amount in the creditcolumn of the worksheet.

Consolidated balance sheet is a balance sheet for the group as a whole. It includes the financial…

Required: Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.

Required: Prepare a consolidated balance sheet worksheet. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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