This assessment addresses the following course objective(s):

  • Prepare transactions according to the Generally Accepted Accounting Principles.
  • Account for various transactions using industry-standard accounting software.

This assignment will give you experience with complex accounting transactions. In this assignment you will prepare a consolidated balance sheet for a company owning 100% of a subsidiary.

  1. Download AC216 Unit 2 Assignment 5 – ConsolidationPreview the document [Excel Spreadsheet]
  2. Follow the instructions found in the template
  3. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 2 Assignment 5 – Consolidation Name)
  4. Submit your completed spreadsheet

Estimated time to complete: 1 hours


Excel Spreadsheet

Assignment File(s):

Problem 5

Consolidated Balance Sheet
Prepare a Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards. The fair value of Marble Falls net fixed assets are $2,675,000.
Big Lake aquired 100% of Marble Falls for 3,750,000
Fair value of assets 2,675,000
Balance Sheet prior to acquistion Big Lake Marble Falls
Current assets 4,250,000 500,000
fixed assets, net 4,500,000 1,675,000
Liabilties 350,000 125,000
Common Stock 7,500,000 1,525,000
Paid in Capital 500,000
Retained Earnings 400,000 525,000
1. Determine the Fair Value of Marble Falls’ net assets.
Account Fair Value
Net assets
2. Calculate Goodwill
Purchase Price
Fair value of assets
2. Prepared journal entries on Big Lake’s Books
Initial purchase
less equity balances
less goodwill
Step up in Net assets
a. Prepare purchase entry Debit Credit
b. Prepare consolidated journal entry to consolidate equity accounts
c. Prepare consolidated journal entry to consolidate assets
3.Prepare Consolidated balance Sheet
Big Lake Marble Falls Debit Credit Consolidated balances
Current assets
Fixed Assets
Investment in Marble Falls
Good will
Common Stock
Paid in Capital
Retained Earnings
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