5.

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The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiarys stock:

		Case I					Case II
		P Company		S Company			P Company		S Company
Current assets		$ 886,700		$257,800			$ 775,900		$279,000
Investment in S Company		191,700					191,700
Long-term assets		1,400,100		401,300			1,198,600		401,300
Other assets		90,900		39,600			69,900		69,800
Total		$2,569,400		$698,700			$2,236,100		$750,100
Current liabilities		$ 645,800		$268,800			$ 701,300		$258,100
Long-term liabilities		850,700		287,700			913,100		268,100
Common stock		596,800		179,500			596,800		179,500
Retained earnings		476,100		(37,300	)		24,900		44,400
Total		$2,569,400		$698,700			$2,236,100		$750,100

Question 5 of 5 - / 5 !!! View Policies Current Attempt in Progress The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Current assets Investment in S Company Long-term assets Other assets Total Case P Company S Company $ 886,700 $257,800 191,700 1,400,100 401,300 90,900 39,600 $2,569,400 $698,700 Case II P Company S Company $ 775,900 $279,000 191,700 1,198,600 401,300 69,900 69,800 $2,236,100 $750,100 Current liabilities Long-term liabilities Common stock Retained earnings Total $ 645,800 850,700 596,800 476,100 $2,569,400 $268,800 287,700 179,500 (37,300) $698,700 $ 701,300 913,100 596,800 24,900 $2,236,100 $258,100 268,100 179,500 44,400 $750,100 Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpape November 30, 2014 Eliminations Dr. Company S Company Case Current Assets $886,700 $257,800 $ $ $ 191,700 Investment in Company Difference between Implied and Book Value Long-term Assets 1,400,100 401,300 Other Assets 90,900 39,600 Total Assets 2,569,400 698,700 645,800 268,800 850,700 287,700 Current Liabilities Long-term Liabilities Common Stock: P Company 596,800 179,500 S Company Retained Earnings P Company S Company 476,100 (37,300) Noncontrolling Interest Total Liabilities and Equity $2,569,400 $698,700 $ HA $ $ Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Company $886,700 S Company Dr. Cr. $257,800 $ $ any 191,700 nplied and Book Value 1,400,100 401,300 90,900 39,600 2,569,400 698,700 645,800 268,800 850,700 287,700 596,800 179,500 476,100 (37.300) st quity $2,569,400 $698,700 $ $ Tatbaaland Madia Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY fonsolidated Balance Sheet Workpaper November 30, 2014 Eliminations Noncontrolling Interest Consolidated Balance Dr. Cr. $ $ $ $ $ $ $ HA Toutbooland Media Question 5 of 5 - / 5 !!! View Policies Current Attempt in Progress The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiary's stock: Current assets Investment in S Company Long-term assets Other assets Total Case P Company S Company $ 886,700 $257,800 191,700 1,400,100 401,300 90,900 39,600 $2,569,400 $698,700 Case II P Company S Company $ 775,900 $279,000 191,700 1,198,600 401,300 69,900 69,800 $2,236,100 $750,100 Current liabilities Long-term liabilities Common stock Retained earnings Total $ 645,800 850,700 596,800 476,100 $2,569,400 $268,800 287,700 179,500 (37,300) $698,700 $ 701,300 913,100 596,800 24,900 $2,236,100 $258,100 268,100 179,500 44,400 $750,100 Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpape November 30, 2014 Eliminations Dr. Company S Company Case Current Assets $886,700 $257,800 $ $ $ 191,700 Investment in Company Difference between Implied and Book Value Long-term Assets 1,400,100 401,300 Other Assets 90,900 39,600 Total Assets 2,569,400 698,700 645,800 268,800 850,700 287,700 Current Liabilities Long-term Liabilities Common Stock: P Company 596,800 179,500 S Company Retained Earnings P Company S Company 476,100 (37,300) Noncontrolling Interest Total Liabilities and Equity $2,569,400 $698,700 $ HA $ $ Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY Consolidated Balance Sheet Workpaper November 30, 2014 Eliminations Company $886,700 S Company Dr. Cr. $257,800 $ $ any 191,700 nplied and Book Value 1,400,100 401,300 90,900 39,600 2,569,400 698,700 645,800 268,800 850,700 287,700 596,800 179,500 476,100 (37.300) st quity $2,569,400 $698,700 $ $ Tatbaaland Madia Case I: Prepare a November 30, 2014, consolidated balance sheet workpaper. Any difference between book value of equity and the value implied by the purchase price relates to subsidiary long-term assets. (Round answers to decimal places, e.g. 125.) P COMPANY AND SUBSIDIARY fonsolidated Balance Sheet Workpaper November 30, 2014 Eliminations Noncontrolling Interest Consolidated Balance Dr. Cr. $ $ $ $ $ $ $ HA Toutbooland Media