Accounting

Part 1: You must use a computer. Solve each of the following problems using Excel (show the supporting calculations), print and attach your response. Save the Excel workbook. Ensure all answers include an appropriate accounting heading (name of company, what the item is - consolidating worksheet, balance sheet, etc., period or date represented). On January 1, 20x1, Pluto Corp. acquired 80% of the common stock of Saturn Corp. for $340,000. At that time, Saturn's stockholders' equity consisted of common stock of $150,000, additional paid in capital of $50,000, and retained earnings of $80,000. The net assets of Saturn were at fair value except Inventory was understated by $10,000 and equipment was understated by $40,000. Equipment had remaining useful life of 10 years. The inventory was sold in 20x1. Required: 1.) Calculate the excess of fair value over book value, if any, and prepare an allocation worksheet, including the amortization of the excess by year. 2.) Since Pluto's stand-alone books and records would account for their investment in Saturn using the equity method, prepare a roll-forward of Pluto's "Investment in Saturn" account and the noncontrolling interest line item for use in Pluto's consolidating worksheet from the date of acquisition through December 31, 20X2. Assume Saturn's reported net income was $120,000 and $180,000 for the years ended December 31, 20X1 and 20X2, respectively. Also assume Saturn declared and paid $40,000 in dividends on common stock during 20X2. 3.) Prepare a consolidating balance sheet and income statement worksheet for Pluto Corp and Subsidiary as of and for the year ended December 31, 20X2, assuming the following additional information (ignore interest and taxes in computing net income): Cash Other Current Assets Fixed Assets, net Liabilities Common Stock APIC Retained Earnings Sales Expenses Pluto $ 175,000 200,000 500,000 573,800 200,000 100,000 534,800 500,000 156,000 Saturn $ 150,000 210,000 430,000 250,000 150,000 50,000 340,000 280,000 100,000 Part 1: You must use a computer. Solve each of the following problems using Excel (show the supporting calculations), print and attach your response. Save the Excel workbook. Ensure all answers include an appropriate accounting heading (name of company, what the item is - consolidating worksheet, balance sheet, etc., period or date represented). On January 1, 20x1, Pluto Corp. acquired 80% of the common stock of Saturn Corp. for $340,000. At that time, Saturn's stockholders' equity consisted of common stock of $150,000, additional paid in capital of $50,000, and retained earnings of $80,000. The net assets of Saturn were at fair value except Inventory was understated by $10,000 and equipment was understated by $40,000. Equipment had remaining useful life of 10 years. The inventory was sold in 20x1. Required: 1.) Calculate the excess of fair value over book value, if any, and prepare an allocation worksheet, including the amortization of the excess by year. 2.) Since Pluto's stand-alone books and records would account for their investment in Saturn using the equity method, prepare a roll-forward of Pluto's "Investment in Saturn" account and the noncontrolling interest line item for use in Pluto's consolidating worksheet from the date of acquisition through December 31, 20X2. Assume Saturn's reported net income was $120,000 and $180,000 for the years ended December 31, 20X1 and 20X2, respectively. Also assume Saturn declared and paid $40,000 in dividends on common stock during 20X2. 3.) Prepare a consolidating balance sheet and income statement worksheet for Pluto Corp and Subsidiary as of and for the year ended December 31, 20X2, assuming the following additional information (ignore interest and taxes in computing net income): Cash Other Current Assets Fixed Assets, net Liabilities Common Stock APIC Retained Earnings Sales Expenses Pluto $ 175,000 200,000 500,000 573,800 200,000 100,000 534,800 500,000 156,000 Saturn $ 150,000 210,000 430,000 250,000 150,000 50,000 340,000 280,000 100,000