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, 2011
Current Assets
Investment in S Company
Long term Assets
Other Assets
Total
Current Liabilities
Long-term Liabilities
Common Stock:
P Company
S Company
Retained Earnings:
P Company
S Company
Noncontrolling Interest
Total
Journal entry descriptions
P
Company
880,000
190,000
S
Company
260,000
1,400,000
90,000
2,560,000
400,000
40,000
700,000
640,000
850,000
270,000
290,000
600,000
180,000
470,000
(40,000)
2,560,000
700,000
Eliminations
Dr.
Cr.
Noncontrolling
Interest
Consolidated
Balance
Problem 3-1 (Part II)
Current Assets
Investment in S Company
Long term Assets
Other Assets
Total
Current Liabilities
Long-term Liabilities
Common Stock:
P Company
S Company
Retained Earnings:
P Company
S Company
Total

November 30, 2011
P
Company
780,000
190,000
S
Company
280,000
1,200,000
70,000
2,240,000
400,000
###
750,000
700,000
920,000
260,000
270,000
600,000
180,000
20,000
40,000
2,240,000
750,000
Eliminations
Dr.
Cr.
Noncontrolling
Interest
Consolidated
Balance
Problem 3-2
Cash
Accounts Receivable
Inventory
Investment in Soho
PERRY COMPANY AND SUBSIDIARY

January 1, 2011
Perry
Soho
Company Company
$ 39,000 $ 19,000
53,000
31,000
42,000
25,000
120,000
Plant Assets
160,000 110,500
Accumulated Depreciati (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:
Perry Company
135,000
Soho Company
16,500
Retained Earnings:
Perry Company
48,500
Soho Company
23,500
Total
$ 362,000
###
Eliminations
Debit
Credit
NoncontrollingConsolidated
Interest
Balances
Problem 3-3
Cash
Receivables
Inventory
Investment in Bonds
Investment in S Company Stock
Plant and Equipment
Land
Total
Accounts Payable
Accrued Expenses
Bonds Payable, 8%
Common Stock:
P Company
S Company
P Company
S Company
Retained Earnings:
P Company
S Company
Total

August 1, 2011
P
S
Eliminations
Company
Company
Dr.
Cr.
165,500
106,000
366,000
126,000
261,000
306,000
586,500
108,000
573,000
200,000
2,458,000
320,000
300,000
960,000
174,000
32,400
58,000
26,000
200,000
1,500,000
460,000
260,000
60,000
491,600
156,000
2,458,000
960,000
Noncontrolling
Interest
Consolidated
Balance
Problem 3-4
Cash
Account Receivable
Note Receivable
Interest Receivable
Inventory
Investment in Sanchez Company
Investment in Thomas Company
Equipment
Land
Total
Accounts Payable
Note Payable
Accrued Interest Payable
Common Stock:
Phillips Company
Sanchez Company
Thomas Company
Philllips Company
Sanchez Company
Thomas Company
Retained Earnings:
Phillips Company
Sanchez Company
Thomas Company
Phillips
Company
7,000
28,000
120,000
225,000
168,000
60,000
180,000
PHILLIPS COMPANY AND SUBSIDIARIES

January 2, 2011
Sanchez
Thomas
Eliminations
Company Company
Dr.
43,700
20,000
24,000
20,000
10,000
300
96,000
43,000
40,000
80,000
30,000
70,000
788,000
294,000
183,000
28,000
20,000
18,000
10,000
300,000
120,000
75,000
300,000
90,000
40,000
160,000
64,000
40,000
Total
788,000
294,000
183,000
Cr.
Noncontrolling
Interest
Consolidated
Balance
Problem 3-6
Cash
Accounts Receivable
Note Receivable
Inventory
Advance to Santos Company
Investment in Santos Company
PING COMPANY AND SUBSIDIARY

July 31, 2011
Ping
Santos
Eliminations
Company
Company
Dr.
Cr.
320,000
150,000
600,000
300,000
100,000
1,840,000
400,000
60,000
2,010,000
Plant and Equipment

Land
Total Assets
3,000,000
90,000
8,020,000
1,500,000
90,000
2,440,000
800,000
900,000
140,000
100,000
Accounts Payable
Notes Payable
Common Stock:
Ping Company
Santos Company
Ping Company
Santos Company
Retained Earnings:
Ping Company
Santos Company
Total
Advances from Ping Company
Interest Payable
Interest Receivable
Total Liabilities and Equity
2,400,000
900,000
2,200,000
680,000
1,720,000
620,000
8,020,000
2,440,000
Noncontrolling Consolidated
Interest
Balance
Problem 3-8 Part B
Cash
Accounts Receivable
Notes Receivable
Merchandise Inventory
Prepaid Insurance
Investment in Sara Company
Investment in Rob Company
Punto
Company
111,000
35,000
18,000
106,000
13,500
160,800
50,000
Advances to Sara Company

Advances to Rob Company
Land
Buildings
Equipment
Total
PUNTO COMPANY AND SUBSIDIARIES

February 1, 2011
Sara
Rob
Eliminations
Company
Company
Dr.
Cr.
45,000
17,000
35,000
26,000
35,500
2,500
14,000
500
10,000
5,000
248,000
100,000
35,000
892,300
43,000
27,000
10,000
198,000
15,000
16,000
2,500
91,000
Accounts Payable
25,500
20,000
10,500
Income Tax Payable

Notes Payable
Bonds Payable
Common Stock:
Punto Company
Sara Company
Rob Company
Punto Company
Sara Company
Rob Company
Retained Earnings:
Punto Company
Sara Company
Rob Company
30,000
10,000
6,000
10,500
Total
100,000
434,000
144,000
42,000
172,800
12,000
38,000
130,000
6,000
(10,000)
892,300
198,000
91,000
Interest
Balance
Problem 3-9
Cash
Accounts Receivable
Notes receivable
Inventory
Investment in Sun Comp.
Pope
Sun
Company
Company
$
297,000 $ 165,000
432,000
468,000
90,000
1,980,000
1,447,000
5,800,000
Plant and equipment (net)

Land
Total Assets
5,730,000
3,740,000
1,575,000
908,000
$ 15,904,000 $ 6,728,000
Accounts payable
Note payable
Common stock ($15 par):
Pope Company
Sun Company
Other contributed capital:
Pope Company
Sun Company
Treasury stock held:
Sun Company
Retained earnings:
Pope Company
Sun Company
Total Liabilities and Equity
698,000 $
2,250,000
247,000
110,000
4,500,000
5,250,000
5,198,000
396,000
(1,200,000)
3,258,000
1,925,000
$15,904,000
$6,728,000
POPE COMPANY AND SUBSIDIARY

January 1, 2009
Eliminations
Debit
Credit
Interest
Balances
Problem:
Entry
Number
Accounts Used
Debit
10
Credit
11
Entry
Number
Accounts Used
Debit
12
Credit
13
Entry
Number
Accounts Used
Debit
14
Credit
15

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CH 03

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Chapter 3

Introduction to this program

Problem 3-1 Part I.

Problem 3-1 (Part II)

P COMPANY AND SUBSIDIARY

PERRY COMPANY AND SUBSIDIARY

P COMPANY AND SUBSIDIARY

PHILLIPS COMPANY AND SUBSIDIARIES

PING COMPANY AND SUBSIDIARY

Plant and Equipment

Problem 3-8 Part B

Advances to Sara Company

PUNTO COMPANY AND SUBSIDIARIES

Income Tax Payable

Plant and equipment (net)

POPE COMPANY AND SUBSIDIARY

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