On Jan 1, 2011, Peter Piper’s Corp purchased an 80%

Answer the following questions completely, showing all work.

On Jan 1, 2011, Peter Piper’s Corp purchased an 80% interest in the common stock of Suzy Q for $350,000.00 Sunflower had the following Balance Sheet on the date of acquisition:

Suzy Q’s Corporation

Balance Sheet

Jan 1, 2011

Assets: Liabilities & Equity

Accounts Receivable $40,000. Accounts Payable $42,297

Inventory 20,000. Bonds Payable $100,000

Land 35,000 Discount on BP (2,297)

Buildings 250,000. Common Stk ($10 par) $10,000

Accumulated Depreciation (50,000) Paid in Capital $90,000

Equipment $120,000 Retained Earnings $115,000.

Accumulated Depreciation (60,000)

Total $355,000 Total $355,000

A comparison of the FMV determined the following:

Inventory $15,000

Buildings $380,000 10 year life

Equipment $45,000 5 year life

Patent $25,000 10 year life

Bonds Payable $105,000 5 year life

Petunia and Sunflower had the following Trial Balances on Dec 31, 2013

Petunia Sunflower

Cash $71,070 $32,032

Accounts Receivable 90,000 60,000

Inventory 100,000 30,000

Land 150,000 45,000

Investment in Sub 385,738 0

Computers 100,775 0

Buildings 500,000 250,000

Accumulated Depreciation ($300,000) ($70,000)

Equipment 200,000 120,000

Accumulated Depreciation (100,000) (84,000)

Accounts Payable (55,000) (25,000)

Bonds Payable 0 (100,000)

Discount on Bonds Payable 0 1,640

Common Stock (100,000) (10,000)

Paid-in Capital (600,000) (90,000)

Retained Earnings (400,000) (145,000)

Sales (600,000) (220,000)

Cost of Goods Sold 410,000 120,000

Depreciation Expense-Buildings 30,000 10,000

Depreciation Expense-Equipment 15,000 12,000

Other Expenses 110,000 45,000

Interest Revenue (7,845) 0

Interest Expense 0 8,328

Subsidiary Income (19,738) 0

Dividends Declared 20,000 10,000

Total -0- -0-

Prepare the worksheet necessary to produce the Consolidated Financial Statements for Petunia and Sunflower for the year ended Dec 31, 2013. Include the Determination and Distribution of Excess Schedule.

	Trial Balance	Elimination Adjustments	Consol I/SIncome	NCI ( %)	Retained Earn (P)	Consol Balance
	Parent	Subsidiary	Dr.	Cr