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Missed 6 questions. I got 10 correct. The answers I got wrong are: Goodwill for both...

Missed 6 questions. I got 10 correct. The answers I got wrong are: Goodwill for both blanks 90,000 and 90,000, Total assets 5,335,000, Liabilities 45,000 and -45,000 and for the second blank under liabilities I tried 835,000. For total liabilities and stockholders equity, I answered 5,335,000 which are all wrong.  

Constructing the Consolidated Balance Sheet at Acquisition
On January 1 of the current year, Healy Company purchased all of the common shares of Miller Company for $500,000 cash. Balance sheets of the two firms immediately after the acquisition follow:

During purchase negotiations, Miller's plant assets were appraised at $425,000 and all of its remaining assets and liabilities were appraised at values approximating their book values. Healy also concluded that an additional $45,000 (for goodwill) demanded by Miller's shareholders was warranted because Miller's earning power was better than the industry average.

Prepare the consolidating adjustments and the consolidated balance sheet at acquisition.

Use negative signs with consolidating adjustment answers, when appropriate.

Healy

Company

Miller

Company

Consolidating

Adjustments

Consolidated

Balance Sheet
Current assets $1,700,000 $120,000 Answer $Answer
Investment in Miller 500,000 - Answer Answer
Plant assets, net 3,000,000 410,000 Answer Answer
Goodwill - - Answer Answer
Total assets $5,200,000 $530,000 $Answer
Liabilities $ 700,000 $ 90,000 Answer $Answer
Contributed capital 3,500,000 400,000 Answer Answer
Retained earnings 1,000,000 40,000 Answer Answer
Total liabilities & stockholders' equity $5,200,000 $530,000 $Answer
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Answer #1
Assets Healey Company Miller Company Consolidated Adjustement Comsolidate Balance sheet
Current Asset $1,700,000 $120,000 $1,820,000
Investment in Miller $500,000 -$500,000 $0
Plant assete,net $3,000,000 $410,000 $15,000 $3,425,000
Goodwill $45,000 $45,000
Total assets $5,200,000 $530,000 $5,290,000
Liabilities $700,000 $90,000 $790,000
Contributed Capital $3,500,000 $400,000 -$400,000 $3,500,000
Retained Earnings $1,000,000 $40,000 -$40,000 $1,000,000
Total liabilities and stockholder's equity $5,200,000 $530,000 $5,290,000
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