CH 03

Chapter 3
Introduction to this program
This worksheet contains spreadsheets that complete the consolidated balance sheet 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. The row to enter the accounts
will contain the message "ADD ACCOUNTS HERE". You will need to activate the
worksheet to see the message.
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 3-1 Part I.
P COMPANY AND SUBSIDIARY
Consolidated Balance Sheet Workpaper
November 30, 2014
P S Eliminations Noncontrolling Consolidated
Company Company Dr. Cr. Interest Balance
Current Assets 880,000 260,000
Investment in S Company 190,000 (1)190000
Difference bw IV and BV (1) 71,111 (2) 71,111
Long term Assets 1,400,000 400,000 (2) 71,111
Other Assets 90,000 40,000
Total 2,560,000 700,000
Current Liabilities 640,000 270,000

Long-term Liabilities 850,000 290,000
Common Stock:
P Company 600,000
S Company 180,000 (1) 180,000
Retained Earnings:
P Company 470,000
S Company (40,000) (1) 40,000
Noncontrolling Interest (1) 21,111 (1) 21,111
Total 2,560,000 700,000
Journal entry descriptions
Problem 3-1 (Part II) P COMPANY AND SUBSIDIARY
November 30, 2014
Investment in S Company 190,000
Long term Assets 1,200,000 400,000

Other Assets 70,000 ###
Total 2,240,000 750,000

Common Stock:
P Company 600,000
S Company 180,000
Retained Earnings:
P Company 20,000
S Company 40,000
Noncontrolling Interest
Total 2,240,000 750,000
Problem 3-2 PERRY COMPANY AND SUBSIDIARY
January 1, 2014
Perry Soho Eliminations NoncontrollingConsolidated

Company Company Debit Credit Interest Balances
Cash $ 39,000 $ 19,000
Accounts Receivable 53,000 31,000
Inventory 42,000 25,000
Investment in Soho 120,000
Plant Assets 160,000 110,500

Accumulated Depreciat (52,000) (19,500)
Total $ 362,000 ###
Current Liabilities $ 18,500 $ 26,000

Mortgage Note Payable 40,000
Common Stock:
Perry Company 120,000
Soho Company 100,000
Other Contributed Capital:
Soho Company 16,500
Retained Earnings:
Soho Company 23,500
Total $ 362,000 ###
Problem 3-3
August 1, 2014
Cash 165,500 106,000
Receivables 366,000 126,000
Inventory 261,000 108,000

Investment in Bonds 306,000
Investment in S Company Stock 586,500
Plant and Equipment 573,000 320,000

Land 200,000 300,000
Total 2,458,000 960,000
Accounts Payable 174,000 58,000

Accrued Expenses 32,400 26,000
Bonds Payable, 8% 200,000

Common Stock:
P Company 1,500,000
S Company 460,000
P Company 260,000
S Company 60,000
Retained Earnings:
P Company 491,600
S Company 156,000
Total 2,458,000 960,000

Problem 3-4
PHILLIPS COMPANY AND SUBSIDIARIES
January 2, 2014
Phillips Sanchez Thomas Eliminations Noncontrolling Consolidated
Company Company Company Dr. Cr. Interest Balance
Cash 7,000 43,700 20,000
Account Receivable 28,000 24,000 20,000
Note Receivable 10,000
Interest Receivable 300
Inventory 120,000 96,000 43,000
Investment in Sanchez Company 225,000
Investment in Thomas Company 168,000
Equipment 60,000 40,000 30,000
Land 180,000 80,000 70,000
Total 788,000 294,000 183,000
Accounts Payable 28,000 20,000 18,000

Note Payable 10,000
Accrued Interest Payable
Common Stock:
Phillips Company 300,000
Sanchez Company 120,000
Thomas Company 75,000
Philllips Company 300,000
Retained Earnings:
Phillips Company 160,000
Total 788,000 294,000 183,000

Problem 3-6
PING COMPANY AND SUBSIDIARY
July 31, 2014
Ping Santos Eliminations Noncontrolling Consolidated
Cash 320,000 150,000
Note Receivable 100,000
Inventory 1,840,000 400,000
Advance to Santos Company 60,000
Investment in Santos Company 2,010,000
Plant and Equipment 3,000,000 1,500,000

Land 90,000 90,000
Total Assets 8,020,000 2,440,000

Notes Payable 900,000 100,000
Common Stock:
Ping Company 2,400,000
Santos Company 900,000
Retained Earnings:
Total 8,020,000 2,440,000
Advances from Ping Company
Interest Payable
Interest Receivable
Total Liabilities and Equity
Problem 3-8 Part B PUNTO COMPANY AND SUBSIDIARIES
February 1, 2014
Punto Sara Rob Eliminations Noncontrolling Consolidated
Company Company Company Dr. Cr. Interest Balance
Cash 111,000 45,000 17,000
Accounts Receivable 35,000 35,000 26,000
Notes Receivable 18,000
Merchandise Inventory 106,000 35,500 14,000
Prepaid Insurance 13,500 2,500 500
Investment in Sara Company 160,800
Investment in Rob Company 50,000
Advances to Sara Company 10,000

Advances to Rob Company 5,000
Land 248,000 43,000 15,000
Buildings 100,000 27,000 16,000
Equipment 35,000 10,000 2,500
Total 892,300 198,000 91,000
Accounts Payable 25,500 20,000 10,500
Income Tax Payable 30,000 10,000

Notes Payable 6,000 10,500
Bonds Payable 100,000
Common Stock:
Punto Company 434,000
Sara Company 144,000
Rob Company 42,000
Sara Company 12,000
Rob Company 38,000
Retained Earnings:
Sara Company 6,000
Rob Company (10,000)
Total 892,300 198,000 91,000

Problem 3-9 POPE COMPANY AND SUBSIDIARY
January 1, 2015
Pope Sun Eliminations Noncontrolling Consolidated
Company Company Debit Credit Interest Balances
Cash $ 297,000 $ 165,000
Notes receivable 90,000
Inventory 1,980,000 1,447,000
Investment in Sun Comp. 5,800,000
Plant and equipment (net) 5,730,000 3,740,000

Land 1,575,000 908,000
Total Assets $ 15,904,000 $ 6,728,000
Accounts payable $ 698,000 $ 247,000

Note payable 2,250,000 110,000
Common stock ($15 par):
Pope Company 4,500,000
Sun Company 5,250,000
Other contributed capital:
Sun Company 396,000
Treasury stock held:
Sun Company (1,200,000)
Retained earnings:
Sun Company 1,925,000
Total Liabilities and Equity $ 15,904,000 $ 6,728,000
Problem:
Entry
Number Accounts Used Debit Credit
10
11
Entry
12
13
Entry
14
15
Problem 3-1 Part I.
November 30, 2014
P S Eliminations
Company Company Dr.
Difference bw IV and BV 71,111
Long term Assets 1,400,000 400,000 71,111
Total 2,560,000 700,000

Common Stock:
P Company 600,000
S Company 180,000 180,000
Retained Earnings:
P Company 470,000
S Company (40,000)
Total 2,560,000 700,000 322,222
Problem 3-1 (Part II) P COMPANY AND SUBSIDIARY

November 30, 2014
P S Eliminations
Company Company Dr.
Difference bw IV and BV 8,889
Long term Assets 1,200,000 400,000
Total 2,240,000 750,000

Common Stock:
P Company 600,000
S Company 180,000 180,000
Retained Earnings:
P Company 20,000
S Company 40,000 40,000
Total 2,240,000 750,000 228,889
D SUBSIDIARY
Sheet Workpaper
30, 2014
Eliminations Noncontrolling Consolidated
Cr. Interest Balance
1,140,000
190,000
71,111
1,871,111
130,000
3,141,111
910,000
1,140,000
600,000
470,000
40,000
21,111 21,111 21,111
322,222 3,141,111
Sheet Workpaper
30, 2014
Eliminations Noncontrolling Consolidated
Cr. Interest Balance
1,060,000
190,000
8,889
8,889 1,591,111
140,000
2,791,111
960,000
1,190,000
600,000
20,000
21,111 21,111 21,111

228,889 2,791,111
Problem 3-3
August 1, 2014
P S Eliminations Noncontrolling
Company Company Dr. Cr.
Cash 165,500 106,000 35,000
Receivables 366,000 126,000 800 800
35,000
Inventory 261,000 108,000
Investment in Bonds 306,000 40,000
Investment in S Company Stoc 586,500 586,500
Differences bw IV and BV 24,333 24,333
Plant and Equipment 573,000 320,000 24,333
Land 200,000 300,000
Total 2,458,000 960,000

Accrued Expenses 32,400 26,000 800
(Advances from P) 35,000 35,000
Bonds Payable, 8% 200,000 40,000
Common Stock:
P Company 1,500,000
S Company 460,000 460,000
P Company 260,000
S Company 60,000 60,000
Retained Earnings:
P Company 491,600 800
S Company 156,000 156,000
Noncontrolling Interest 65,167
Total 2,458,000 960,000 811,933 811,933

Noncontrolling Consolidated
Interest Balance
306,500
457,000
369,000
266,000
868,667
500,000
2,767,167
232,000
57,600
160,000
1,500,000
260,000
492,400
65,167 65,167
2,767,167

CH 03

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Chapter 3

Introduction to this program

Current Liabilities 640,000 270,000

Long term Assets 1,200,000 400,000

Current Liabilities 700,000 260,000

Perry Soho Eliminations NoncontrollingConsolidated

Plant Assets 160,000 110,500

Current Liabilities $ 18,500 $ 26,000

Inventory 261,000 108,000

Plant and Equipment 573,000 320,000

Accounts Payable 174,000 58,000

Bonds Payable, 8% 200,000

Journal entry descriptions

Total 788,000 294,000 183,000

Accounts Payable 28,000 20,000 18,000

Total 788,000 294,000 183,000

Plant and Equipment 3,000,000 1,500,000

Accounts Payable 800,000 140,000

Advances to Sara Company 10,000

Accounts Payable 25,500 20,000 10,500

Income Tax Payable 30,000 10,000

Total 892,300 198,000 91,000

Plant and equipment (net) 5,730,000 3,740,000

Accounts payable $ 698,000 $ 247,000

Current Liabilities 640,000 270,000

Problem 3-1 (Part II) P COMPANY AND SUBSIDIARY

Current Liabilities 700,000 260,000

21,111 21,111 21,111

Accounts Payable 174,000 58,000

Journal entry descriptions

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