Value Added Accounting Practices in Strategic Business Decisions
Case 4.1
Intercompany transactions
Required:
1. Determine the schedule of amortization of ECOBV for the years 2011 to 2015.
2. Reconstruct the balance for the account "Investment in Sandbar" at December 31, 2015. Use the T-account to present the calculations.
3. Reconstruct the balance of the account "Income from Sandbar" for the year 2015. Use the Taccount to present the calculations.
4. Prepare consolidation adjustment entries.
5. Complete a consolidated worksheet for Peninsular Company and its subsidiary Sandbar Company as of December 31, 2015. Use the format provided in the next page (You can write your own Excel worksheet, but with the indicated format).
Case 4.2
Non-controlling Interests and Intercompany transactions
Required:
1. Determine the Goodwill assigned to Non-controlling interest at the acquisition date.
2. Determine the schedule of amortization of ECOBV for the years 2012 and 2013.
3. What is the balance of "Investment in Beta" at December 31, 2012? Use the T-account to present the calculations.
4. What is the balance of "Equity in Beta's income" in 2012? Use the T-account to present the calculations.
5. Calculate the balance of NCI at December 31, 2013. Provide detail calculations of the three components of this balance.
6. Prepare consolidation adjustment entries.
7. Complete a consolidated worksheet for Alpha Company and its subsidiary Beta Company as of December 31, 2013. Use the format provided in the next page (You can write your own Excel worksheet, but with the indicated format).
See the attached two cases.
Attachment:- Case-4.rar