Question

P4-25 Assignment of Differential in Worksheet LO 4-5 Pork Corporation acquired all the voting shares of Swine Enterprises on January 1, 20X4. Balance sheet amounts for the companies on the date of acquisition were as follows: Cash & Receivables Inventory Land Buildings & Equipment Investment in Swine Enterprises Total Debits Pork Corporation $ 56,000 101,000 84,000 416,000 297,000 $954,000 Swine Enterprises $ 36,000 56,000 94,000 240,000 $426,000 Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Total Credits $160,000 48,000 94,000 293,000 359,000 $954,000 $ 63,000 11,000 114,000 94,000 144,000 $426,000

Answer 1

Working Note
Particulars	Pork	Swine	Consolidation		Consolidated
			Dr	Cr
Assets
Cash & Receivables	56000	36000			92000
Inventory	101000	56000			157000
Land	84000	94000			178000
Building & Equipment	416000	240000		63000	593000
Accumulated Depreciation	-160000	-63000	63000		-160000
Investment in Swine Enterprises	297000			297000	0
Goodwill			59000		59000
Total Assets	794000	363000	122000	360000	919000
Liabilities
Accounts Payable	48000	11000			59000
Notes Payable	94000	114000			208000
Common Stock	293000	94000	94000		293000
Retained Earning	359000	144000	144000		359000
Total Liabilities & Equity	794000	363000	238000	0	919000
Pork Corporation and Subsidy
Consolidated Balancesheet
January 01, 20*4
Particulars					Amount
Assets
Cash & Receivables					92000
Inventory					157000
Land					178000
Building & Equipment				593000
Less: Accumulated Depreciation				-160000	433000
Goodwill					59000
Total Assets					919000
Liabilities & Stockholders Equity
Accounts Payable					59000
Notes Payable					208000
Common Stock				293000
Retained Earning				359000	652000
Total Liabilities & Stockholders Equity					919000