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					Chapter 8

Introduction to this program

This worksheet contains spreadsheets that complete the consolidated worksheet after the
student inputs the eliminating journal entries on the consolidated worksheet.

1. To activate the process, a debit must be entered into the debit elimination entry column.
2. There is a separate column, in which to enter the number or letter to key the entry (e.g. (1) or (a)).
3. In some cases, balance sheet accounts may need to be added. These accounts have already
been added to the worksheet.
4. If two rows in the elimination columns contain brackets (I.e. [ ), this means that two rows can
be used for the same account. In other words, more than one debit to an account is possible.
5. Each worksheet may be printed before any numbers are inserted and used to solve the problem
manually.
6. The last worksheet (labeled JE) contains three blank journal entry pages. These can be used to
prepare eliminating journal entries for any or all of the homework problems. This sheet can
be duplicated for each problem if needed.
Problem 8-3
                                                         Pyle Company and Subsidiary
                                                     Consolidated Statements Workpaper
                                                    For the Year Ended December 31, 2008
                                                Pyle         Stern                      Eliminations         Noncontrolling   Consolidated
                                              Company       Company               Dr.                  Cr.     Interest        Balances
Income Statement
Income before Dividend Income                    172,000       186,000
Dividend Income                                   48,000
Net/Consolidated Income                          220,000       186,000
Subsidiary Income Sold

Noncontrolling Interest in Income
Net Income to Retained Earnings                  220,000       186,000

Retained Earnings Statement
1/1 Retained Earnings:
 Pyle Company                                  1,200,000

 Stern Company                                                 292,000
Net Income from Above                            220,000       186,000
Dividends Declared:
 Pyle Company                                    (80,000)
 Stern Company                                                 (60,000)
12/31 Retained Earnings to Balance Sheet       1,340,000       418,000
                                                Pyle         Stern                      Eliminations         Noncontrolling   Consolidated
                                              Company       Company               Dr.                  Cr.     Interest        Balances
Balance Sheet
Current Assets                                   600,000       320,000
Investment in Stern Company                      480,000
Other Assets                                   1,180,000       668,000
  Total                                        2,260,000       988,000

Liabilities                                      190,000        90,000
Common Stock:
  Pyle Company                                   500,000
  Stern Company                                                300,000
Other Contributed Capital:
  Pyle Company                                   230,000

  Stern Company                                                180,000
Retained Earnings from Above                   1,340,000       418,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
  Total                                        2,260,000       988,000
Problem 8-4
                                                       Porter Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                   For the Year Ended December 31, 2008
                                               Porter        Spitz                     Eliminations         Noncontrolling   Consolidated
                                              Company      Company               Dr.                  Cr.     Interest        Balances
Income Statement
Income before Dividend Income                    63,200       60,000
Dividend Income                                  24,300
Net/Consolidated Income                          87,500       60,000
Subsidiary Income Sold
Noncontrolling Interest in Income
Net Income to Retained Earnings                  87,500       60,000

Retained Earnings Statement
1/1 Retained Earnings:
  Porter Company                                206,500

  Spitz Company                                              126,000
Net Income from Above                            87,500       60,000
Dividends Declared:
  Porter Company                                (50,000)
  Spitz Company                                              (30,000)
12/31 Retained Earnings to Balance Sheet        244,000      156,000
                                               Porter        Spitz                     Eliminations         Noncontrolling   Consolidated
                                              Company      Company               Dr.                  Cr.     Interest        Balances
Balance Sheet
Cash                                             90,000       40,000
Accounts Receivable                              62,000       38,000
Inventory                                       106,000       64,000
Investment in Spitz Company                     121,500
Difference b/w implied and book value
Plant Assets                                    320,000      149,000
Land                                             69,000       46,000
  Total                                         768,500      337,000

Liabilities                                     102,000       61,000
Common Stock:
  Porter Company                                250,000
  Spitz Company                                              100,000
Other Contributed Capital:
  Porter Company                                172,500

  Spitz Company                                               20,000
Retained Earnings from Above                    244,000      156,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
  Total                                         768,500      337,000
Problem 8-5
                                                          Pyle Company and Subsidiary
                                                      Consolidated Statements Workpaper
                                                     For the Year Ended December 31, 2008
                                                Pyle          Stern                  Eliminations         Noncontrolling   Consolidated
                                              Company       Company               Dr.               Cr.     Interest        Balances
Income Statement
Income from Independent Operations              172,000       186,000
Equity Subsidiary Income                        151,125
Net/Consolidated Income                         323,125       186,000
Subsidiary Income Sold
Noncontrolling Interest in Income
Net Income to Retained Earnings                 323,125       186,000

Retained Earnings Statement
1/1 Retained Earnings:
  Pyle Company                                 1,346,200
  Stern Company                                               292,000
Net Income from Above                           323,125       186,000
Dividends Declared:
  Pyle Company                                   (80,000)
  Stern Company                                               (60,000)
12/31 Retained Earnings to Balance Sheet       1,589,325      418,000
                                                Pyle         Stern                   Eliminations         Noncontrolling   Consolidated
                                              Company       Company               Dr.               Cr.     Interest        Balances
Balance Sheet
Current Assets                                  600,000       320,000
Investment in Stern Company                     718,400

Other Assets                                   1,180,000      668,000
Total                                          2,498,400      988,000

Liabilities                                     190,000        90,000
Common Stock:
  Pyle Company                                  500,000
  Stern Company                                               300,000
Other Contributed Capital:
  Pyle Company                                  219,075
  Stern Company                                               180,000
Retained Earnings from Above                   1,589,325      418,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
Total                                          2,498,400      988,000
Problem 8-6
                                                       Porter Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                   For the Year Ended December 31, 2008
                                               Porter          Spitz                    Eliminations          Noncontrolling   Consolidated
                                              Company       Company                Dr.                  Cr.      Interest       Balances
Income Statement
Income from Independent Operations               63,200         60,000
Equity in Subsidiary Income                      50,400
Net/Consolidated Income                         113,600         60,000
Subsidiary Income Sold
Noncontrolling Interest in Income
Net Income to Retained Earnings                 113,600         60,000

Retained Earnings Statement
1/1 Retained Earnings:
        Porter Company                          301,900
        Spitz Company                                          126,000
Net Income from Above                           113,600         60,000
Dividends Declared:
        Porter Company                          (50,000)
        Spitz Company                                          (30,000)
12/31 Retained Earnings to Balance Sheet        365,500        156,000
                                               Porter         Spitz                      Eliminations         Noncontrolling   Consolidated
                                              Company       Company                Dr.                  Cr.     Interest        Balances
Balance Sheet
Cash                                             90,000         40,000
Accounts Receivable                              62,000         38,000
Inventory                                       106,000         64,000
Investment in Spitz Company                     231,660

Difference b/w implied and book value
Plant Assets                                    320,000        149,000
Land                                             69,000         46,000
Total                                           878,660        337,000

Liabilities                                     102,000         61,000
Common Stock:
            Porter Company                      250,000
            Spitz Company                                      100,000
Other Contributed Capital:
            Porter Company                      161,160
            Spitz Company                                       20,000
Retained Earnings from Above                    365,500        156,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
Total                                           878,660        337,000
Problem 8-12 (Cost Method )
                                                        Phan Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                   For the Year Ended December 31, 2007
                                               Phan         Sato                    Eliminations           Noncontrolling   Consolidated
                                              Company     Company             Dr.                    Cr.     Interest        Balances
Income Statement
Sales                                          1,800,000     605,000                   60                                      2,404,940
Gain on revaluation                               13,925                                                                          13,925
Dividend Income                                   37,625                                                                          37,625
 Total Revenue                                 1,851,550     605,000                                                           2,456,490
Cost of Goods Sold                             1,100,000     320,000                                                           1,420,000
Other Expense                                    350,000     130,000                                                             480,000
 Total Cost and Expense                        1,450,000     450,000                                                           1,900,000
Net/Consolidated Income                          401,550     155,000                                                             556,490
Noncontrolling Interest in Income
Net Income to Retained Earnings                 401,550      155,000                   60                                        556,490

Retained Earnings Statement
1/1 Retained Earnings:
 Phan Company                                   326,325                                                                          326,325
 Sato Company                                                165,000                                             165,000
Net Income from Above                           401,550      155,000                   60                                        556,490
Dividends Declared:
 Phan Company                                   (150,000)                                                                       (150,000)
 Sato Company                                                (70,000)                                            (70,000)
12/31 Retained Earnings
 to Balance Sheet                               577,875      250,000                   60                         95,000         732,815
                                               Phan           Sato                    Eliminations         Noncontrolling   Consolidated
                                              Company       Company             Dr.                  Cr.     Interest        Balances
Balance Sheet
Current Assets                                  165,500      138,000                                                             303,500

Investment in Sato Company                      334,425                                                                          334,425

Difference b/w implied and book value
Other Assets                                     920,000     672,000                                                           1,592,000
 Total Assets                                  1,419,925     810,000                                                           2,229,925

Liabilities                                     142,050      160,000                                                             302,050
Paid in Capital - Phan Company                  100,000                                                                          100,000
Capital Stock:
   Phan Company                                 600,000                                                                          600,000
   Sato Company                                              400,000                                             400,000
Retained Earnings from Above                    577,875      250,000                   60                         95,000         732,815
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets                                                                       95,000          95,000
 Total Liabilities and Equity                  1,419,925     810,000                   60                                      1,829,865
Problem 8-13 (Cost Method)
                                                       Phan Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                  For the Year Ended December 31, 2008
                                               Phan         Sato                  Eliminations           Noncontrolling   Consolidated
                                              Company     Company             Dr.                  Cr.     Interest        Balances
Income Statement
Sales                                          1,800,000     600,000

Dividend Income                                   63,000
 Total Revenue                                 1,863,000     600,000
Cost of Goods Sold                             1,100,000     325,000
Other Expense                                    350,000     125,000
 Total Cost and Expense                        1,450,000     450,000
Net/Consolidated Income                          413,000     150,000
Noncontrolling Interest in Income
Net Income to Retained Earnings                 413,000      150,000

Retained Earnings Statement
1/1 Retained Earnings:
 Phan Company                                   577,875
 Sato Company                                                250,000
Net Income from Above                           413,000      150,000
Dividends Declared:
 Phan Company                                   (150,000)
 Sato Company                                                (70,000)

12/31 Retained Earnings to Balance Sheet        840,875      330,000
                                               Phan           Sato                  Eliminations         Noncontrolling   Consolidated
                                              Company       Company           Dr.                  Cr.     Interest        Balances
Balance Sheet
Current Assets                                  165,500      218,000

Investment in Sato Company                      614,425


Difference b/w implied and book value
Other Assets                                     920,000     672,000
 Total Assets                                  1,699,925     890,000

Liabilities                                     159,050      160,000
Paid in Capital - Phan Company                  100,000
Capital Stock:
   Phan Company                                 600,000
   Sato Company                                              400,000
Retained Earnings from Above                    840,875      330,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
 Total Liabilities and Equity                  1,699,925     890,000
Problem 8-14 (Equity Method)
                                                       Phan Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                  For the Year Ended December 31, 2007
                                               Phan         Sato                  Eliminations             Noncontrolling   Consolidated
                                              Company     Company             Dr.                Cr.         Interest        Balances
Income Statement
Sales                                          1,800,000     605,000                                                           2,405,000
Gain on revaluation                               13,925                                                                          13,925
Equity Income                                     83,313                        83,313
 Total Revenue                                 1,897,238     605,000                                                           2,418,925
Cost of Goods Sold                             1,100,000     320,000                                                           1,420,000
Other Expense                                    350,000     130,000                                                             480,000
 Total Cost and Expense                        1,450,000     450,000                                                           1,900,000
Net/Consolidated Income                          447,238     155,000                                                             518,925
Noncontrolling Interest in Income                                                                                 71,688         (71,688)
Net Income to Retained Earnings                 447,238      155,000            83,313                            71,688         447,237

Retained Earnings Statement
1/1 Retained Earnings:
 Phan Company                                   353,100                                                                          353,100
 Sato Company                                                165,000           165,000
Net Income from Above                           447,238      155,000            83,313                            71,688         447,237
Dividends Declared:
 Phan Company                                   (150,000)                                                                       (150,000)
 Sato Company                                                (70,000)                             37,625         (32,375)
12/31 Retained Earnings
 to Balance Sheet                               650,338      250,000          248,313             37,625         39,313          650,337
                                               Phan           Sato                Eliminations             Noncontrolling   Consolidated
                                              Company       Company           Dr.                Cr.         Interest        Balances
Balance Sheet
Current Assets                                  165,500      138,000                                                             303,500
Investment in Sato Company                      406,888                                           45,688
                                                                                                 361,200
Difference b/w implied and book value                                          107,000           107,000
Other Assets                                     920,000     672,000           107,000                                         1,699,000
 Total Assets                                  1,492,388     810,000                                                           2,002,500

Liabilities                                     142,050      160,000                                                             302,050
Paid in Capital - Phan Company                  100,000                                                                          100,000
Capital Stock:
   Phan Company                                 600,000                                                                          600,000
   Sato Company                                              400,000           400,000
Retained Earnings from Above                    650,338      250,000           248,313            37,625          39,313         650,337
1/1 Noncontrolling Interest in Net Assets                                                        310,800         310,800
12/31 Noncontrolling Interest in Net Assets                                                                      350,113         350,113
 Total Liabilities and Equity                  1,492,388     810,000           862,313           862,313                       2,002,500
Problem 8-15 (Equity Method)
                                                       Phan Company and Subsidiary
                                                    Consolidated Statements Workpaper
                                                  For the Year Ended December 31, 2008
                                               Phan         Sato                  Eliminations           Noncontrolling   Consolidated
                                              Company     Company             Dr.                  Cr.     Interest        Balances
Income Statement
Sales                                          1,800,000     600,000

Equity Income                                    135,000
 Total Revenue                                 1,935,000     600,000
Cost of Goods Sold                             1,100,000     325,000
Other Expense                                    350,000     125,000
 Total Cost and Expense                        1,450,000     450,000
Net/Consolidated Income                          485,000     150,000
Noncontrolling Interest in Income
Net Income to Retained Earnings                 485,000      150,000

Retained Earnings Statement
1/1 Retained Earnings:
 Phan Company                                   650,338
 Sato Company                                                250,000
Net Income from Above                           485,000      150,000
Dividends Declared:
 Phan Company                                   (150,000)
 Sato Company                                                (70,000)
12/31 Retained Earnings
 to Balance Sheet                               985,338      330,000
                                               Phan           Sato                  Eliminations         Noncontrolling   Consolidated
                                              Company       Company           Dr.                  Cr.     Interest        Balances
Balance Sheet
Current Assets                                  165,500      218,000

Investment in Sato Company                      758,888


Difference b/w implied and book value
Other Assets                                     920,000     672,000
Total                                          1,844,388     890,000

Liabilities                                     159,050      160,000
Paid in Capital - Phan Company                  100,000
Capital Stock:
   Phan Company                                 600,000
   Sato Company                                              400,000
Retained Earnings from Above                    985,338      330,000
1/1 Noncontrolling Interest in Net Assets
12/31 Noncontrolling Interest in Net Assets
Total                                          1,844,388     890,000
Problem:

 Entry
Number     Accounts Used   Debit   Credit
 Entry
Number   Accounts Used   Debit   Credit
 Entry
Number   Accounts Used   Debit   Credit

				
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