Prepare a consolidated worksheet ILE TURE TS The noncontrol

Prepare a consolidated worksheet.

ILE TURE TS The noncontrol lem 11-3 (Lo 3, 5) Translate a trial balance and prepar Proble w tune pressures to expand globally, Pueblo Corporation acquired a 100 % interest in siren son Company, a foreign company, on January 1, 2016. Pueblo paid 12,000,000 FC, and Soren- son\'s equity consisted of the following ks heet with excess of cost over book value traceable to equipment e a consolidation in Soren- Common stock Paidin copital in excess of por Retained earnings.. Total 3,000,000FC 2,000,000 4,200,000 9,200,00O FC On the date of acquisition, equipment with a 10-year life was undervalued by 500,000 FC. Any remaining excess of cost over book value is attributable to additional equipment with a 20-year life. The trial balances for Pueblo and Sorenson as of December 31, 2018, are as follows: Pueblo Corporation Sorenson Company 2,840,000 FC Cash Accounts Receivable. nventory . 4,050,000 5,270,000 5,540,000 3,990,000 5,800,000 20,969,000 21,000,000 (12,560,000 3,450,000 (10,000,000) (4,000,000 6,500,000 112,180,000) Investment in Sorenson . Fixed Assets Accumulated Depreciation Accounts Payoble ong-Term Debt Common Stock 15,000,000 16,800,000) 11,580,000) (5,000,000) (3,000,000! 12,000,000) 7,950,000

Solution

Answer 01/01/2016 Paid for acquisition 12000000 FC Sorenson\'s equity on date of acquisition: FC Common Stock 3000000 Paid in capital in excess of par 2000000 Retained earnings 4200000 Total 9200000 Excess of cost over book value 2800000 Undervaluation of 10 year equipment 500000 Additional Equipment (20 year life) 2300000 Total 2800000 Sorenson\'s revised condensed trial balance as at 01/01/2016 Assets Equipment (adjustment to value) 2800000 Goodwill Other net assets 7200000 Total 10000000 Liabilities and Equity Common Stock 3000000 Paid in capital in excess of par 2800000 Retained earnings 4200000 Total 10000000 Consolidated Worksheet 12/31/2018 Pueblo Corporation Sorenson Company Sorenson translated Consolidated Rate Cash 4050000 2840000 3720400 7770400 1.31 Accounts Receivable 5270000 3990000 5226900 10496900 Inventory 5540000 5800000 7598000 13138000 Investment in Sorensonn 20969000 0 20969000 Fixed assets 21000000 15000000 19650000 40650000 Accumulated depreciation -12560000 -6800000 -8908000 -21468000 Accounts payable -3450000 -5000000 -6550000 -10000000 Long term debt -10000000 -5000000 -6550000 -16550000 Common stock -4000000 -3000000 -3930000 -7930000 Paid in capital in excess of par -6500000 -2000000 -2620000 -9120000 Retained earnings (01/01/2018) -12180000 -7950000 -10414500 -22594500 Sales -26000000 -10000000 -13300000 -39300000 1.33 Cost of goods sold 16380000 7500000 9975000 26355000 Operating expenses 3210000 1200000 1596000 4806000 Subsidiary income 1729000 0 1729000 0 0 -4506200 -1048200