Guilaran, Kerr John B

GUILARAN, KERR JOHN B.
BSA51KB1
Problem 15-1
a. Investment in Solo Company
Cash
To record acquisition of 90% of the outstanding shares of
Retained Earnings (Polo Company)

Cash
To record acquisition-related costs direct to retained earnin
b. Working Paper Elimination Entries:
1. Common Stock (Solo Company)

Retained Earnings (Solo Company)
Investment in Solo Company
Non-controlling Interest
To eliminate Solos equity accou
2. Inventories
Property & Equipment
Goodwill
Investment in Solo Company
To allocate excess
Determination of Allocation of Excess Schedule:

Company Fair Value
Less: BV of interest acquired
Common Stock
Retained Earnings
Total Equity
Interest Acquired
Book Value
Excess
Adjustments:
Inventory
Goodwill
Problem 15-3
a. Investment in Sotto Company
Cash
To record acquisition of 80% stock of Sotto.
Retained Earnings (Pedro Company)

Cash
To record acquisition costs.
b. Price Paid
Total
Less: BV of Net Assets
Excess
Allocation:
Current Assets
Long-term Debt
Goodwill
c. Working Paper Elimination Entries:
1. Common Stock (Sotto Company)

Add. Paid-in Capital (Sotto Company)
Retained Earnings (Sotto Company)
Investment in Sotto Company
To eliminate Sottos equity acco
2. Long-term Liabilities
Goodwill
Current Assets
Investment in Sotto Company
To allocate excess
Problem 15-5
a. Investment in Solo Company
Common stock
Additional paid-in capital
To record acquisition of stock.
b. Retained Earnings (Polo Company)

Cash
To record acquisition-related costs direct to retained earnin

Palo Company and Subsidiary
Consolidated Statement of Financial Position
12/31/2013
Cash
Receivables
Inventory
Property and equipment net
Goodwill
Total assets
Current liabilities
Long-term liabilities
Common stock
Additional paid-in capital (P20,000 + P150,000 P20,000)
Retained earnings, 12/31 (P220,000 P10,000)
Total liabilities and stockholders equity
Computation of goodwill:
Consideration given
Less fair value of net assets (P290,000 60,000)
Goodwill
Problem 15-7
a. Accounts Receivable
Cash
a. Investment in Sea Company
Common Stock
Retained Earnings (Pop Corporation)
Common Stock
Current Liabilities
Pop Corporation and Subsidiary

Working Paper for Consolidated Balance Sheet
April 30, 2013 Date of acquisition
Assets
Cash
Accounts receivable
net
Inventories
Investment in Sea
Company
Pop
Corporation
Sea
Company
50,000
230,000
80,000
270,000
400,000
600,000
350,000
Plant assets
Goodwill
Total
1,300,000
560,000
2,580,000
1,260,000
Equity
Current liabilities
380,000
250,000
Long-term debt
800,000
600,000
Liabilities &
Stockholders
Common stock
Pop
Sea
1,070,000
100,000
360,000
Retained earnings
Pop
Sea
330,000
-50,000
NCI
Total
2,580,000
1,260,000
1. To eliminate equity accounts of Sea Company on the date of acquisit

2. To allocate difference, computed as follows:
Price paid
NCI (P600,000/80%) x 20%
Total
Less: Book value of net assets of Sea
Excess
Allocation:
Inventories
Plant assets
Long-term debt
Goodwill
(3) To eliminate intercompany receivables and payables
Problem 15-9
1. Price paid
NCI
Total
Less: BV of net assets
Excess
Allocation:
Inventory
Land
Building
Equipment
Bonds payable
(20,000)
(10,000)
50,000
60,000
(50,000)
Goodwill
2
P Company and Subsidiary

Consolidated Working Paper
January 2, 2013 Date of acqui
Debits
Cash
Accounts receivable
Inventory
Land
Building
Equipment
Investment in S
Company
Goodwill
Total
Credits
Accounts payable
Bonds payable
Common stock P Co.
P
Company
S
Company
300,000
200,000
50,000
100,000
200,000
100,000
600,000
800,000
500,000
80,000
50,000
400,000
200,000
2,700,000
880,000
150,000
60,000
290,000
1,500,000
Common stock S Co.

APIC S Co.
Retained earnings P
Co.
Retained earnings S
Co.
100,000
200,000
1,050,000
NCI
Total
2,700,000
(1) To eliminate equity accounts of S Company
(2) To allocate excess
230,000
880,000
Problem 15-11
1. Investment in Sun Company
Cash
2. Price paid
Less: BV of interest acquired
Common stock
Retained earnings
Excess
Allocation:
Land
Building
Bond payable (bond disc
Deferred taxes
Goodwill
1,900,000
(100,000)
(200,000)
(40,000)
(20,000)
3. Land
Building
Bond discount
Goodwill
Deferred taxes
Retained earnings
100,000
200,000
40,000
100,000
20,000
840,000
Additional paid in capital
4. Common stock
Additional paid in capital
Investment in Sun Company
600,000
1,300,000
1,080,000
1,080,000
outstanding shares of Solo.
50,000
50,000
direct to retained earnings of Polo Company.
400,000
500,000
ment in Solo Company

ntrolling Interest
810,000
90,000
nate Solos equity accounts at the date of acquisition.
30,000
60,000
210,000
ment in Solo Company

ntrolling Interest
270,000
30,000
xcess Schedule:
Total
1,200,000
400,000
500,000
900,000
300,000
Parent (80%)
1,080,000
NCI (20%)
120,000
900,000
90%
810,000
270,000
900,000
10%
90,000
30,000
(30,000)
(60,000)
P 210,000
950,000
950,000
Non-controlling Interest:
(1,080,000/90%) x 10% = 120,000
80,000
80,000
950,000
230,000
1,180,000
900,000
280,000
50,000
(100,000)
(40,000)
(90,000)
P 190,000
100,000
200,000
600,000
ment in Sotto Company

ntrolling Interest
720,000
180,000
nate Sottos equity accounts at the date of acquisition.
40,000
100,000
190,000
50,000
230,000
50,000
ment in Sotto Company

ntrolling Interest
direct to retained earnings of Polo Company.
ncial Position
250,000
100,000
150,000
10,000
20,000
30,000
70,000
120,000
170,000
340,000
20,000
720,000
30,000
120,000
210,000
150,000
210,000
720,000
250,000
230,000
20,000
70,000
70,000
600,000
600,000
40,000
30,000
70,000
Balance Sheet
acquisition
Adjustments
Debit
& Eliminations
Credit
Consolidated
(3) 70,000
130,000
430,000
(1)328,000
840,000
-
(2) 90,000
(2)272,000
(2)220,000
(2) 50,000
2,080,000
50,000
3,530,000
(3) 70,000
560,000
(2) 20,000
1,420,000
1,070,000
(1)100,000
(1)360,000
330,000
(1) 50,000
890,000
(1) 82,000
(2) 68,000
890,000
the date of acquisition.

600,000
150,000
750,000
410,000
340,000
(90,000)
(220,000)
20,000
(290,000)
50,000
500,000
100,000
600,000
530,000
150,000
3,530,000
70,000
30,000
100,000
ny and Subsidiary
ted Working Paper
013 Date of acquisition
Adjustments
Debit
& Eliminations
Credit
Consolidated
350,000
300,000
(2) 20,000
(2) 10,000
(2) 50,000
(2) 60,000
(1)424,000
300,000
160,000
950,000
940,000
-
(2) 76,000
(2)100,000
100,000
3,100,000
210,000
240,000
1,500,000
(2) 50,000
(1)100,000
(1)200,000
1,050,000
(1)230,000
(2) 6,000
716,000
(1)106,000
716,000
100,000
3,100,000
1,900,000
1,900,000
600,000
840,000
460,000
(360,000)
P 100,000
1,300,000
1,900,000
olling Interest:
10% = 120,000

Guilaran, Kerr John B

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GUILARAN, KERR JOHN B.

Retained Earnings (Polo Company)

To record acquisition-related costs direct to retained earnin

b. Working Paper Elimination Entries:

1. Common Stock (Solo Company)

To eliminate Solos equity accou

Determination of Allocation of Excess Schedule:

To record acquisition of 80% stock of Sotto.

Retained Earnings (Pedro Company)

1. Common Stock (Sotto Company)

To eliminate Sottos equity acco

b. Retained Earnings (Polo Company)

To record acquisition-related costs direct to retained earnin

Pop Corporation and Subsidiary

1. To eliminate equity accounts of Sea Company on the date of acquisit

P Company and Subsidiary

Common stock S Co.

direct to retained earnings of Polo Company.

ment in Solo Company

nate Solos equity accounts at the date of acquisition.

ment in Solo Company

ment in Sotto Company

nate Sottos equity accounts at the date of acquisition.

ment in Sotto Company

direct to retained earnings of Polo Company.

the date of acquisition.

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