CASE MATERIAL The audit of Almax Company and its subsidiaries for the year ended June 30,...

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CASE MATERIAL The audit of Almax Company and its subsidiaries for the year ended June 30, 2020 was completed and the trial balance on the attached spreadsheet was prepared. Ruster is a domestic subsidiary and Voiles is a foreign subsidiary located in Montral France. Voiles conducts all of its transactions in Canadian Dollars, which constitute its functional currency. (1) Almax Company acquired 400,000 shares of Ruster Company common stock for $34,000,000 on 7/1/17. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10-year life and 50% to goodwill. (2) Almax Company acquired all of Voiles Company's 800,000 shares of stock on 7/1/17 for $65,000,000. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10-year life and 50% to goodwill. (3) Condensed balance sheets of Ruster and Voiles on 7/1/17 and 7/1/18 in U.S. dollars were as follows. Current Assets Property & Equipment Ruster Company 7/1/19 38,500,000 51,300,000 7/1/17 35,500,000 47,500,000 Almax Company Ruster Company Voiles Company Voiles Company 7/1/19 20,500,000 62,300,800 7/1/17 28,000,000 61,300,000 Current Liabilities 12,500,000 10,000,000. 10,500,000 9,500,000 Bonds Payable 20,000,000 20,000,000 Common Stock ($50 par) 25,000,000 25,000,000 40,000,000 40,000,000 Retained Earnings 20,000,000 15,000,000 12,500,000 20,000,000 (4) Total dividends declared and paid during the 2019-2020 fiscal year were as follows: 2,400,000 2,500,000 800,000 (Pd 10/24/19 - US Dollars) In addition to dividend payments, Almax Company and Ruster Company each declared dividends of $1 per share payable in July 2019. (5) On December 31, 2019 Almax sold equipment with a book value of $800,000 to Ruster for $1,000,000. Ruster depreciates equipment on the straight-line method over 10 years. (6) Almax Company consistently sells to its subsidiaries at prices that realize a gross profit of 25% on sales. Ruster and Voiles companies sell to each other and to Almax Company at cost. Prior to fiscal 2020 intercompany sales were negligible, but during 2019-2020 the following sales were made (in US Dollars). Sabro Almax Company to Ruster Company Almax Company to Voiles Company Ruster Company to Voiles Company Ruster Company to Almax Company untholim (7) At 6/30/20 Yoon REQUIRED: Total Sales bad: 17,200,000 silisel 16,000,000 Almax Company owed Ruster Company TXINE Ruster Company owned Voiles Company Voiles Company owed Almax Company Centat 6/30/20 050.000,00 000,000,85 2,500,000 2,800,000 anatokter SPENOX EXY 900.00m Included on Purchasers Inventory Fashi 2,000,000 4,000,000 500,000 800,000 2,400,000 1,600,000 1,200,000 mind breasting (4) Prepare excel spreadsheets for the translation of the foreign subsidiary to U.S. dollars and the consolidation of all three companies. Your spreadsheets should make extensive use of formulas which automatically make calculations. Supporting schedules (such as intercompany profit schedules and purchase price allocations) should be shown on your spreadsheets and automatically carried into your solution. horsens incant Note:: When doing the consolidation do it in financial statement format not trial bala format. 000.000 FOR NEOF 400,00.05 enth 000,000,452 52 banidzan (use 0821 Almax Company and Subsidiaries Trial Balances June 30, 2020 Cash Accounts Receivable Dividends Receivable Inventories Investment in Ruster Investment in Voiles Investment in 6% Ruster Bonds Property Plant & Equipment Accumulated Depreciation Accounts Payable Dividends Payable Bonds Payable Capital Stock ($50 Par) Dividends Retained Earnings (7/1/19) Sales Gain on Sale of Equipment Interest Income Dividend Income Cost of Goods Sold Operating Expenses Interest Expense Almax Company (U.S. $) 8,800,000 10,600,000 400,000 13,750,000 34,000,000 65,000,000 15,000,000 63,900,000 (40,200,000) (20,800,000) (1,200,000) (55,000,000) (60,000,000) 3,600,000 (31,420,000) (294,850,000) (200,000) (900,000) (3,200,000) 250,000,000 41,100,000 1,620,000 0 Ruster Company ($ U.S.) 14,150,000 14,670,000 0 16,300,000 0 0 0 56,600,000 (22,500,000) (10,640,000) (500,000) (20,000,000) (25,000,000) 3,000,000 (20,000,000) (155,000,000) 0 0 0 119,160,000 28,000,000 1,760,000 0 Voiles Company Canadian) 10,400,000 13,812,000 0 18,300,000 0 0 0 88,500,000 (51,115,000) (10,230,000) 0 0 (50,000,000) 1,000,000 (16,667,000) (230,000,000) 0 0 0 189,000,000 37,000,000 0 0 CASE MATERIAL The audit of Almax Company and its subsidiaries for the year ended June 30, 2020 was completed and the trial balance on the attached spreadsheet was prepared. Ruster is a domestic subsidiary and Voiles is a foreign subsidiary located in Montral France. Voiles conducts all of its transactions in Canadian Dollars, which constitute its functional currency. (1) Almax Company acquired 400,000 shares of Ruster Company common stock for $34,000,000 on 7/1/17. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10-year life and 50% to goodwill. (2) Almax Company acquired all of Voiles Company's 800,000 shares of stock on 7/1/17 for $65,000,000. Any excess of purchase price over underlying book value was attributed 50% to property, plant and equipment with a 10-year life and 50% to goodwill. (3) Condensed balance sheets of Ruster and Voiles on 7/1/17 and 7/1/18 in U.S. dollars were as follows. Current Assets Property & Equipment Ruster Company 7/1/19 38,500,000 51,300,000 7/1/17 35,500,000 47,500,000 Almax Company Ruster Company Voiles Company Voiles Company 7/1/19 20,500,000 62,300,800 7/1/17 28,000,000 61,300,000 Current Liabilities 12,500,000 10,000,000. 10,500,000 9,500,000 Bonds Payable 20,000,000 20,000,000 Common Stock ($50 par) 25,000,000 25,000,000 40,000,000 40,000,000 Retained Earnings 20,000,000 15,000,000 12,500,000 20,000,000 (4) Total dividends declared and paid during the 2019-2020 fiscal year were as follows: 2,400,000 2,500,000 800,000 (Pd 10/24/19 - US Dollars) In addition to dividend payments, Almax Company and Ruster Company each declared dividends of $1 per share payable in July 2019. (5) On December 31, 2019 Almax sold equipment with a book value of $800,000 to Ruster for $1,000,000. Ruster depreciates equipment on the straight-line method over 10 years. (6) Almax Company consistently sells to its subsidiaries at prices that realize a gross profit of 25% on sales. Ruster and Voiles companies sell to each other and to Almax Company at cost. Prior to fiscal 2020 intercompany sales were negligible, but during 2019-2020 the following sales were made (in US Dollars). Sabro Almax Company to Ruster Company Almax Company to Voiles Company Ruster Company to Voiles Company Ruster Company to Almax Company untholim (7) At 6/30/20 Yoon REQUIRED: Total Sales bad: 17,200,000 silisel 16,000,000 Almax Company owed Ruster Company TXINE Ruster Company owned Voiles Company Voiles Company owed Almax Company Centat 6/30/20 050.000,00 000,000,85 2,500,000 2,800,000 anatokter SPENOX EXY 900.00m Included on Purchasers Inventory Fashi 2,000,000 4,000,000 500,000 800,000 2,400,000 1,600,000 1,200,000 mind breasting (4) Prepare excel spreadsheets for the translation of the foreign subsidiary to U.S. dollars and the consolidation of all three companies. Your spreadsheets should make extensive use of formulas which automatically make calculations. Supporting schedules (such as intercompany profit schedules and purchase price allocations) should be shown on your spreadsheets and automatically carried into your solution. horsens incant Note:: When doing the consolidation do it in financial statement format not trial bala format. 000.000 FOR NEOF 400,00.05 enth 000,000,452 52 banidzan (use 0821 Almax Company and Subsidiaries Trial Balances June 30, 2020 Cash Accounts Receivable Dividends Receivable Inventories Investment in Ruster Investment in Voiles Investment in 6% Ruster Bonds Property Plant & Equipment Accumulated Depreciation Accounts Payable Dividends Payable Bonds Payable Capital Stock ($50 Par) Dividends Retained Earnings (7/1/19) Sales Gain on Sale of Equipment Interest Income Dividend Income Cost of Goods Sold Operating Expenses Interest Expense Almax Company (U.S. $) 8,800,000 10,600,000 400,000 13,750,000 34,000,000 65,000,000 15,000,000 63,900,000 (40,200,000) (20,800,000) (1,200,000) (55,000,000) (60,000,000) 3,600,000 (31,420,000) (294,850,000) (200,000) (900,000) (3,200,000) 250,000,000 41,100,000 1,620,000 0 Ruster Company ($ U.S.) 14,150,000 14,670,000 0 16,300,000 0 0 0 56,600,000 (22,500,000) (10,640,000) (500,000) (20,000,000) (25,000,000) 3,000,000 (20,000,000) (155,000,000) 0 0 0 119,160,000 28,000,000 1,760,000 0 Voiles Company Canadian) 10,400,000 13,812,000 0 18,300,000 0 0 0 88,500,000 (51,115,000) (10,230,000) 0 0 (50,000,000) 1,000,000 (16,667,000) (230,000,000) 0 0 0 189,000,000 37,000,000 0 0

Answer rating: 100% (QA)

Trial balance Almax Company and Subsidiaries Trial Balances December 31 2020 Almax Ruster Voiles Company Company Company US US Canadian Cash 8800000 1... View the full answer