Prepare consolidated worksheet

Reference no: EM13903984

On January 1, 2012, the Parent Company paid $80,000,000 cash to acquire all of the Subsidiary Compan'y common stock. On

December 31, 2012, the trial balances for the two companies were as follows:

	Parent company	Subsidiary	Subsidiary
	book value	book value	fair value

Cash	2,000,000	1,000,000	1,000,000
Accounts Receivable	3,000,000	2,000,000	2,000,000
Inventory	6,000,000	5,000,000	4,000,000
Equipment (net)	15,000,000	10,000,000	14,000,000
Building (net)	60,000,000	20,000,000	40,000,000
Land	40,000,000	15,000,000	30,000,000
Investment in Subsidiary	81,000,000
Costs of Goods Sold	25,000,000	10,000,000
Depreciation Expense	4,000,000	2,000,000
Other Expenses	11,000,000	3,000,000
Dividends Declared	5,000,000	1,000,000
Total Debits	252,000,000	69,000,000	91,000,000


Accounts Payable	5,000,000	2,000,000	2,000,000
Taxes Payable	8,000,000	4,000,000	4,000,000
Notes Payable	17,000,000	6,000,000	5,000,000
Bonds Payable	30,000,000	7,000,000	8,000,000
Common Stock	40,000,000	6,000,000
Additional Paid-in Capital	80,000,000	10,000,000
Retained Earnings	10,000,000	14,000,000
Sales Revenue	60,000,000	20,000,000
Income from Subsidiary	2,000,000
Total Credits	252,000,000	69,000,000	19,000,000

The remaining usable life of the Equipment is 4 years.

The remaining usable life of the Building is 10 years.

Subsidiary Company owers $1,000,000 to Parent Company.

Required

1. Prepare Consolidated Worksheet

Reference no: EM13903984

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