On Jan 1, 2015, Petunia Corp purchased an 70% interest in the common stock of Sunflower Corp. for $350,000.00 Sunflower had the following Balance Sheet on the date of acquisition:
Sunflower Corporation
Balance Sheet
Jan 1, 2015
Assets: Liabilities & Equity
Accounts Receivable $40,000. Accounts Payable $42,297
Inventory 20,000. Bonds Payable $100,000
Land 35,000 Discount on BP (2,297)
Buildings 250,000. Common Stk ($10 par) $10,000
Accumulated Depreciation (50,000) Paid in Capital $90,000
Equipment $120,000 Retained Earnings $115,000.
Accumulated Depreciation (60,000)
Total $355,000 Total $355,000
FMV Information:
Inventory FMV =$30,000
Buildings FMV =$225,000 10 years remaining
Equipment FMV =$75,000 5 years remaining
Petunia and Sunflower had the following Trial Balances on Dec 31, 2017
Petunia Sunflower
Cash $360,070 $92,032
Inventory 350,000 75,000
Investment in Sub 381,270 0
Buildings 500,775 250,000
Accumulated Depreciation ($300,000) ($70,000)
Equipment 200,000 120,000
Accumulated Depreciation (100,000) (84,000)
Accounts Payable (55,000) (25,000)
Bonds Payable 0 (100,000)
Discount on Bonds Payable 0 1,640
Common Stock (100,000) (10,000)
Paid-in Capital (500,000) (90,000)
Retained Earnings (397,000) (145,000)
Sales (700,000) (220,000)
Cost of Goods Sold 210,000 120,000
Depreciation Expense-Buildings 30,000 10,000
Depreciation Expense-Equipment 15,000 12,000
Other Expenses 102,155 53,328
SUB Income (17,270) 0
Dividends Declared 20,000 10,000
Total -0- -0-
Prepare the worksheet necessary to produce the Consolidated Financial Statements for Petunia and Sunflower for the year ended Dec 31, 2017. Include the Determination and Distribution of Excess Schedule.
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