Title One

This Template will help solve the following problems from the text:

Problem 4-1 In this problem, I assumed that Property Plant, and Equipment had a Book Value of $3,000,000.

Problem 4-2 Part 1

Problem 4-3

Problem 4-4

Problem 4-6 In this problem, I assumed the following Book Values on the acquisition date: Plant and Equipment $190,000, Common Stock $70,000, Paid in Capital $62,000 and Retained Earnings of $58,000.

Problem 4-7

Problem 4-8

Problem 4-11 In this problem, I assumed the following Book Values on the acquisition date: Inventory $100,000, Buildings and Equipment $100,000, Common Stock $50,000, Paid in Capital $50,000 and Retained Earnings $100,000.

Problem 4-12 In this problem I assumed Book Values on the acquisition date equal to those in Problem 4-11.

Problem 4-14

Problem 4-15

Overview

Chapter Four continues the focus on consolidated financial statements. The worksheets created in this chapter parallel the material covered in chapterChapter Four of the text, but only the elimination entries for intercompany inventory and intercompany fixed asset sales at a profit will be added to the worksheet. The template being generated will use the template created for Chapter Three as a starting foundation. To this template we will add intercompany inventory and fixed asset sales. This template will again handle all price categories, as well as, 100% or less than 100% ownership interests.

We will be looking at the Johnson Company Data. This template will also be used as a foundation for future chapters.

The Johnson Company Data

Acquisitions Inc. purchased an 80% interest in the Johnson Company by issuing 6,000 shares of their $1 par value common stock having a market price of $50 per share. No direct acquisition costs were incurred in this January 1, 2011, purchase. The book values and market values of the net assets of Johnson on the date of...