INFORMATION:
Pinarello Inc. buys 70% of Schwinn Inc. common stock on January 1, 2011 for $520,000
The fair value of Schwinn net assets equals the book values except for
Inventory with a fair value $30,000 more than book value
Inventory costs are recorded on a FIFO basis
Equipment with a fair value $110,000 more than book value
Equipment has a remaining life of 10 years
The noncontrolling interest in the fair value of net assets = $222,000
Trial Balances
31-Dec-11
all numbers in 000's
|
Pinarello Inc. |
|
Schwinn Inc. |
| Account |
Debit |
Credit |
|
Debit |
Credit |
| Cash |
188 |
|
|
120 |
|
| Accounts Receivable |
196 |
|
|
100 |
|
| Inventory |
286 |
|
|
150 |
|
| Land |
322 |
|
|
120 |
|
| Buildings & Equipment |
1,400 |
|
|
1,200 |
|
| Accumulated Depreciation |
|
560 |
|
|
640 |
| Investment in Schwinn Stock |
|
|
|
|
|
| Accounts Payable |
|
310 |
|
|
120 |
| Bonds Payable |
|
600 |
|
|
280 |
| Common Stock |
|
1,000 |
|
|
420 |
| Retained Earnings |
|
288 |
|
|
180 |
| Dividends Declared & Paid |
160 |
|
|
20 |
|
| Sales |
|
800 |
|
|
400 |
| Income from Schwinn |
|
|
|
|
|
| Cost of Goods Sold |
390 |
|
|
282 |
|
| Depreciation Expense |
70 |
|
|
38 |
|
| Other Expenses |
40 |
|
|
10 |
|
| Totals |
3,052 |
3,558 |
|
2,040 |
2,040 |
REQUIREMENTS:
Create a December 31, 2011 three-part consolidation Excel spreadsheet workpaper based on the information given below
Your spreadsheet should be similar to Figure 5-7 p 218 of our 9th ediion textbook
For your consolidation workpaper Excel spreadsheet, you should
1 -- prepare necessary December 31, 2011 eliminating entries, separate from the worksheet include all necessary support work for your eliminating entry amounts
Determine any goodwill or gain on acquisition and any identifiable net asset differentials related to the original acquisition of Schwinn common stock
2 -- determine the missing amounts from the given trial balances
3 -- create the appropriate columns and rows in the colsolidation workpaper
4 -- import trial balance data pulled from the given trial balances, do NOT copy numbers
5 -- create appopriate formulas for any numerical calculations do NOT copy totals from other sources
6 -- import the eliminating entry data into the worksheet, do NOT copy numbers with references to the eliminating entry from which the data was imported
7 -- create appropriate formulas for the balances in the consolidation column
Attachment:- advance accounting project.xlsx