The Excel Spreadsheet Project is a computer project designed to help you develop spreadsheet

skills. You will prepare consolidated worksheets using formulas that illustrate the consolidation

entries needed when the parent uses the equity method, partial equity method, or initial value

method of accounting for its investment in a subsidiary. The detailed information for this project

is found at the end of Chapter $3$ under the heading of $$Excel Spreadsheet Project.$$

INSTRUCTIONS

You are to create an Excel workbook with $4$ tabs as follows:

$$ Tab $1$ Consolidated Information Worksheet

$$ Tab $2$ Equity Method

$$ Tab $3$ Partial Equity Method

$$ Tab $4$ Initial Value Method

This assignment encompasses the first $3$ project requirements as listed in the Computer Project

within the textbook. The consolidated worksheets that you are preparing are not for the year of

acquisition, but for the succeeding year. Therefore, when determining the beginning parent

company retained earnings and Investment account balances for the year in question under the

initial value and partial equity methods, remember that those balances will be converted to the

equity method as of the beginning of the year in the consolidated worksheet via the $*$C entry.

The beginning retained earnings and investment account balances based on parent company

records will differ under each of the three methods. The difference will be reflected in the $*$C

entry.

You will complete the Excel Spreadsheet Project in $2$ parts:

For Excel Spreadsheet Project: Initial Assignment, you must complete Tab $1$ with the fair

value allocation schedule. Then you will begin Tabs $24,$ completing trial balances for Pecos and

Suaro. This assignment encompasses the first $2$ project requirements stated in the textbook.

Pecos Company acquired $100$ percent of Suaro's outstanding stock for $\backslash (\backslash$$ $1,450,000\backslash )$ cash on January $1,2023,$ when Suaro had the following balance sheet:

At the acquisition date, the fair values of each identifiable asset and liability that differed from book value were as follows:

Additional Information