Complete the Consolidated Worksheet using Excel (include all the consolidation entry labels and all the totals on the far right column and the bottom row).

Walter Corp. purchased 90% of Ataway Company on January 1, 2019, for $657,000 in cash. On that date, the 10% interest was assessed to have a $73,000 fair value.Also, at the acquisition date, Ataway held equipment (4-year remaining life) undervalued on the financial records by $20,000 and a long term note payable was overvalued by $40,000 (5 year term). The excess purchase price was assigned to previously unrecognized Brand Names with a 10-year life.

Walter uses the intitial value method to account for its investment in Ataway.During 2019, Ataway earned net income of $80,000 and paid no dividends.

Each year Ataway sells Walter inventory at a 20% gross profit rate. Intra-entity sales were $145,000 in 2019 and $160,000 in 2020. On January 1, 2020, 30% of the 2019 transfers were still on hand.On December 31, 2020, 40% of the 2020 transfers were still on hand. Ataway still owed Walter $20,000 on an account payable for this inventory.

Walter sold Ataway a building on January 2, 2019.It had a cost to Walter of $100,000 but had $90,000 in accumulated depreciation at the time of this transfer.The sale price was $25,000 in cash.At that time, the building had a 5 year remaining life (straight-line method is used).

On January 1, 2020, Walter reports $600,000 in bonds outstanding with a carrying amount of $564,000. On January 1, 2020, Ataway purchased half of these bonds on the open market for $291,000. They use straight-line amortization.

A B C E F G H Consolidated Worksheet NAME: Non- Consolidation Entries Controlling Consolidated 4 Accounts Walter Ataway Label Debi Label Credit Interest Totals Sales (791,000) $ (600,000) 6 Cost of Goods Sold 500,000 $ 400,000 7 8 Dividend Income (9,000) $ 9 Bond Interest Income (34,000) 10 Depreciation Amortization Expense 18,000 $ 14,00 1 Interest Expense 2.000 1.000 Bond Interest Expense 72,000 13 Expenses 30,000 $ 145,000 14 Loss on Redemption of Bonds 15 Separate Net Income (128,000) $ (74,000) 16 Consolidated Net Income Net Income to Noncontrolling Interest 18 Net Income to Controlling Interest 19 Retained Earnings, Walter, 1/1 $ (930,000) 21 Retained Earnings, Ataway, 1/1 $ (560,000) 22 23 Net Income (128,000) $ (74,000) 24 Dividends 130,000 $ 10,000 25 Retained Earnings 12131 988,000) $ (624,000) 26 27 Cash 445,000 $ 130,000 28 Receivables 100,000 50,000 29 Inventory 224,000 $ 160,000 30 Investment in Ataway 657,000 31 32 Investment in Ataway Bonds 292,500 33 Equipment (net 600,000 420,000 34 Buildings 1,000,000 650,000 35 Accumulated Depreciation-Buildings (100,000) $ (200,000) 36 Other Assets 442.000 $ 200,000 37 Brand Names 38 Total Assets 3.368,000 $ 1,702.500 39 40 Accounts Payable (192,000) $ (258.500) 41 Note Payable (1,018,000) $ (670,000) 42 Bonds Payable (600,000) $ 43 Discount on Bonds Payable 30,000 44 Common Stock (no new shares issued $ (600,000) $ (150,000) 45 Retained Earnings 12/31 (988,000) $ (624,000) 46 Noncontrolling Interest 1/1 47 48 Noncontrolling Interest 12/31 49 Total Liabilities & Stockholder's $ (3,368,000) $ (1,702,500) 50