Chapter- 6

CONSOLIDATIONS
Introduction
A corporation that controls the activities of
another corporation through stock
ownership is called parent company. The
company or companies controlled by a
parent are called subsidiaries. Both parents
and subsidiaries are sometimes referred to
as affiliated companies
A parent company formed for the sole
purpose of holding the stock of other
corporations and supervising their activities and
is designated as a holding company.

The stock interest held by a parent company

of a subsidiary is called the controlling interest
and the remainder of the stock owned outside of
the consolidated group is referred to as the
minority interest.
 Levels of Investment
To illustrate the differences in reporting the income applicable to the common stock
shares owned, consider the following example based on the reported income of the
investor and investee (company whose shares are owned by investor):
The Function of Consolidated Statements
Consolidated financial statements are designed to
present the results of operations, cash flow, and the
balance sheet of both the parent and its subsidiaries as if
they were a single company.
Generally, consolidated statements are the most
informative to the stockholders of the controlling
company.
Yet, consolidated statements do have their shortcomings.
The rights of the non-controlling shareholders are limited
to only the company they own, and, therefore, they get
little value from consolidated statements. They really need
the separate statements of the subsidiary.
Consolidated statements have been criticized
for being too aggregated.
Unprofitable subsidiaries may not be very
obvious, because, when consolidated, their
performance is combined with that of other
affiliates.
However, this shortcoming is easily overcome.
One option is to prepare separate statements of
the subsidiary as supplements to the consolidated
statements.
The second option, which may be required, is to
provide disclosure for major business segments.
Techniques of Consolidation
There are two means of achieving control over
the assets of another company.
A company may directly acquire the assets of
another company, or it may acquire a controlling
interest in the other company’s voting common
stock.
In an asset acquisition, the company whose
assets were purchased is dissolved.
The assets acquired are recorded directly on the
books of the purchaser, and consolidation of
balance sheet amounts is automatic.
Where control is achieved through a stock
acquisition, the acquired company (the
subsidiary) remains as a separate legal entity
with its own financial statements.

While the initial accounting for the two types

of acquisitions differs significantly, a 100%
stock acquisition and an asset acquisition have
the same effect of creating one larger single
reporting entity and should produce the same
consolidated balance sheet.
There is, however, a difference if the stock
acquisition is less than 100%. Then, there will
be a non-controlling interest in the consolidated
balance sheet which is not possible when the
assets are purchased directly.
The Functions of Consolidated Statements

The consolidated financial statement is for a

head office and its branches.
Assets, liabilities, revenues and expenses of the
parents company and its subsidiaries are totaled
and inter company transactions and balances are
eliminated.
The final consolidated amounts are reported in
the consolidated balance sheet, income statement,
statement of shareholders equity, and statements
of cash flows.
Present and prospective shareholders of the parent
company are interested in future profitability and cash
flows.
Creditors of the parent company have interests and
information needs similar to those of the shareholders.
The profitability and financial health of the parent is
directly related to that of the companies’ control.
In parent company accounts, investments were stated at
cost and if a profit and loss account are provided and only
dividends due from subsidiaries are shown in the
statement.
The investment account and earnings of subsidiary
accounts are eliminated in the consolidation process.
Parent Company and Subsidiary Relationship:
Business combination is involving a combiner's
acquisition of common stock of a combine
corporation.

If the investor acquires a controlling interest in

the investee, then the parent and subsidiary
relationship established.

A corporation that owns over 50% of the voting

stock of another corporation is able to control that
corporation through its stock ownership.
When Consolidated Statements be Prepared?
When two or more separate corporations are
operating under centralized control, exercised
through stock ownership.
These consolidated financial statements are
report the financial position and operating results
of a parent company and its subsidiaries as
through they comprised a single accounting
entity.
For external reporting, consolidation of
subsidiary becomes necessary whenever control
exists.
For internal record keeping, the parent has the
choice of alternatives for monitoring the activities
of its subsidiaries. They are COST and EQUITY
methods.

Both the investment account and dividend

income are eliminated when the subsidiary and
parent financial statements are consolidated.

This and all other adjustments are made only on

the consolidation work papers
Cost Method
The cost method uses for cash basis income
recognition.
The original cost of the investment is recorded
on the parent’s books.
No adjustments are made to reflect subsequent
changes in fair value (unless serious doubt as to
the realization of the investment exists in which
case a permanent write-down is made).
When dividends are declared, dividend income
is recognized.
Undistributed earnings have no affect on
EQUITY METHOD
The equity method is otherwise called as
accrual method.
The parent adds periodically to the investment
account, of its share of the subsidiary’s earnings
or deducts its share of any losses and records the
receipt of any dividends as a realization of some
portion of the growth in the investment.
At acquisition, the investment is recorded at
cost.
Subsidiary earnings after acquisition increase
the investment account and increase earnings on
Subsidiary losses after acquisitions decrease the
investment account and decrease earnings on the
income statement.
Dividends received from the subsidiary reduce
the investment account.
When the fair value of identifiable assets
exceeds their carrying value on the subsidiary’s
books, the excess is amortized over the remaining
economic life of the assets. This amortization
reduces the investment account on the parent’s
books and reduces subsidiary earnings reported
on the income statement.
Consolidation Procedure
The investment account and earnings of
subsidiary accounts are eliminated in the
consolidation process.
Check figures:

Consolidated net income will be the same

as the parent company’s net income.

Consolidated retained earnings will be the

same as the parent company’s retained
earnings.
Wholly Owned Subsidiary
A wholly owned subsidiary is a company, all of
whose stock is held within the consolidated
group.

Partially Owned Subsidiary

When a parent company owns less than 100% of
the capital stock of a subsidiary is based on less
than complete ownership.
 Controlling Interest
An investor’s direct or indirect ownership of more
than 50% of an investee’s outstanding common
stock has been required to evidence of the
controlling interest, and when parent-subsidiary
relationship established.

Minority Interest
Parents Company also has outside shareholders
and these stockholders are the minority
stockholders, and their interest is referred to as a
minority interest.
 An affiliation structures
Percy Company (parent)
  
Sandal Corporation Saltz Corporation
(Subsidiary) (Subsidiary)
 1. Percy Company owning 90% of the voting stock of
Sandal Corporation.
2. 80% of the voting stock of Saltz Corporation.
3. Percy company owns 90% of the voting stock of
Sandal, and stockholders outside and it mentioned in the
affiliation structure own the other 10%
4. These outside stockholders are the minority
stockholders, and their interest is referred to as a minority
interest.
5. And outside stockholder have a 20% minority in Salz
Consolidation of Wholly Owned Subsidiary on Date of
Purchase type Business combination:
Illustration
Assume that on December 31, 2020, Palm Company
issued 10,000 shares of its $ 10 per common stock
(Current fair value $ 45 a share) to stock holders of Sure
Company for all outstanding Dollar 5 Par common stock
of Sure. There was no contingent consideration; out of
pocket costs of the business combination paid by Palm on
December 31, 2020, considered the following.
Finders and legal fees relating to business combination
50,000
Costs associated with SEC registration statement for Palm
common stock 35,000
Assume that the Business combination qualified
for purchase accounting because required
conditions for pooling accounting were not met.
Sure Company was to continue its corporate
existence as a wholly owned subsidiary of Palm
Corporation. Both companies have common
financial year for accounting purpose.

Financial Statements of Palm Company and

Sure Company for the year ended December 31,
2020, prior to consummation of the Business
Combination is as follows
 Palm Corporation and Sure Company
Separate Financial Statements (prior to Business Combination)
For year December 31, 2020
Palm Sure
Income statement
Revenue
Net sales 990,000 600,000 Interest revenue
10,000 --
Total Revenue 1,000,000 600,000
Costs and Expenses
Cost of Goods Sold 635,000 410,000
Operating Expenses 158,333 73,333
Interest Expenses 50,000 30,000
Income Tax Expenses 62,667 34,667
Total Costs 906,000 548,000
Net Income 94,000 52,000
 Statement of Retained Earnings
Retained earnings at the beginning of the Year 65,000 100,000
Add: Net income 94,000 52,000
Subtotal 159,000 152,000
Less: Dividend (25,000) (20,000)
Retained Earnings at the end 134,000 132,000

Balance Sheets
Assets
Cash 100,000 40,000
Inventories 150,000 110,000
Other current assets 110,000 70,000
Receivables from Starr company 25,000 ---
Plant Assets (net) 450,000 300,000
Patent (net) -- 20,000
Total Assets 835,000 540,000
Liabilities and Share holders Equity
Payable to Palm Corporation 25,000
Income tax payable 26,000 10,000
Other liabilities 325,000 115,000
Common stock, 10 dollar par 300,000 --
Common Stock, 5 dollar par -- 200,000
Additional paid in capital 50,000 58,000
Retained Earnings 134,000 132,000
Total 835,000 540,000
The December 31, 2020, current fair values of Sure Company’s identifiable
assets and liabilities were the same as their carrying amounts except for the
three assets listed below:
Inventories 135,000
Plant assets (net) 365,000
Patent (net) 25,000
Require:
A. Prepare journal entries on December 31, 2020(Palm corporation)
B. Prepared consolidated balance sheet without worksheet
C. Prepared consolidated balance sheet with worksheet
1. Investment in Sure company Common stock ( 10,000X45) 450,000
Common stock (10,000X10) 100,000
Paid in Capital In excess of Par 350,000
To record issuance of 10,000 shares of common stock for all the
outstanding common stock of Sure Company in a purchase type
business combination .

2. Investment in Sure Company common stock 50,000

Paid-in-capital in excess of par 35,000
Cash 85,000
To record payment of out of pocket costs of Business Combination with
Sure company

Note: Sure Company is not going to liquidation and it will continue its
existence after business combination also, so, there is no need of pass
further journal entry for liquidation. The reason is Sure Company
remains as a separate legal entity since it is not liquidated.
B. Preparation of Consolidated Balance Sheet without
Worksheet.
The preparation of a Consolidated Balance Sheet for a parent
company and its wholly owned subsidiary may be accomplished
without the use of a supporting working paper. The parent
company’s investment account and the subsidiary’s stock holder’s
equity accounts do not appear in the consolidated balance sheet
because they are essentially reciprocal accounts. Under purchases
accounting theory, the parent company (combiner) assets and
liabilities (other than intercompany transactions) are reflected at
carrying amounts and the subsidiary assets and liabilities (other
than intercompany transactions) are reflected at current fair
values, in the Consolidated Balance Sheet. Good will is recognized
to the extent the cost of the parent’s investment in 100% of the
subsidiary’s outstanding common stock exceeds the current fair
value of the subsidiary’s identifiable net asset.
Appling the foregoing principles to Palm corporation and Sure
Company parent-subsidiary relationship, the following Consolidated
Balance Sheet is produced.
Ledger Accounts affected in the Books of Palm Company
(Combiner) because of the purchase is as follows:-
 
Account title Cash Account
 
Date Explanation Debit Credit Balance
 
Dec 31 2020 Balance Forward ---- 100,000 Dr
“ Out of Pocket Expense 85,000 15,000 Dr
 Account title Investment in Sure Company Common Stock
Date Explanation Debit Credit Balance
Dec 31, 2020 Issuance of common stock 450,000 450,000 Dr“
Direct out of Pocket Expenses 50,000 500,000 Dr

Common Stock, Dollar 10 Par

Date Explanation Debit Credit Balance
Dec 31 2020 Balance forward 300,000 Cr
“ Issuance of Common stock 100,000 400,000 Cr

Paid in Capital in Excess of Par

Date Explanation Debit Credit Balance
Dec 31 2020 Balance Forward 50,000 Cr
“ Issuance of Common stock 350,000 400,000 Cr
Costs of issuing common stock in Business Combination
35,000 365,000 Cr
 Palm Corporation and Subsidiary
Consolidated Balance Sheet
December 31, 2020
Assets
Current Assets:
Cash (15,000+40,000) 55,000
Inventories (150,000+135,000) 285,000
Others ( 110,000+70,000) 180,000
Total Current Assets 520,000
Plant Assets ( net ) ( 450,000+365,000) 815,000
Intangible Assets :
Patents ( net) (0+25,000) 25,000 Goodwill (net)
15,000
Total Assets 1,375,000
Liabilities and Equity
Liabilities:
Income taxes payable ( 26,000+10,000) 36,000
Others ( 325,000+115,000) 440,000
Total Liabilities 476,000
Common stock , $ 10 par 400,000
Additional paid capital 365,000
Retained Earnings 134,000 899,000
The following are significant aspects of the foregoing Consolidated
Balance Sheet:
1. The first amounts in the computation of consolidated assets and
liabilities (except goodwill) are the parent company’s carrying
amounts: the second amounts are the subsidiary’s current fair
values.
2. Intercompany accounts (Parent’s investment, subsidiary’s stock
holders equity and intercompany receivables/payables) are
excluded from the Consolidated Balance Sheet.
3. Goodwill in the Consolidated Balance Sheet is the cost of the
parent company’s investment (500,000) less the current fair
value of the subsidiary’s identifiable net assets (485,000) or
15,000 the 485,000 current fair value of the subsidiary’s
identifiable net assets is computed as follows:
(40,000+135,000+70,000+365,000+25000-
25000+10,000+115,000=485,000)
C. Consolidated Balance Sheet with work sheet
The preparation of a Consolidated Balance Sheet
on the date of a purchase type business
combination usually requires the use of a working
paper for Consolidated Balance Sheet, even for a
parent company and a wholly owned subsidiary.
The format of the working paper with individual
balance sheet amounts included for both Palm
and Sure Company is shown below:
 Palm Corporation and Subsidiary
Working Paper for Consolidated Balance Sheet
December 31, 2020
Particulars Palm Sure Elimination Consolidated
Increase (Decrease)
Assets:
Cash 15,000 40,000 55,000
Inventories 150,000 110,000 (a) 25,000 285,000
Other CA 110,000 70,000 180,000
Inter company
Receivs/Payable 25,000 (25,000)
Investment in
Sure Company 500,000 (a) (500,000)
Plant Assets (net) 450,000 300,000(a ) 65,000 815,000
Patent (net) 20,000 (a) 5,000 25,000
Goodwill (net) (a) 15,000 15,000
Total Assets 1,250,000 515,000 (390,000) 1,375,000
Liabilities& Equity
Income Tax payable 26,000 10,000 36,000
Other Liabilities 325,000 115,000 440,000
Common Stock
dollar 10 Par 400,000 400,000
Common stock
dollar 5 Par 200,000 (a) (200,000)
Additional Paid
In Capital 365,000 58,000 (a) (58,000) 365,000
Retained earnings 134,000 132,000 (a) (132,000) 134,000

Total 1,250,000 515,000 (390,000) 1,375,000

Consolidated Balance Sheet:
Palm Corporation and Subsidiary
Consolidated Balance Sheet
December 31, 2020
Assets
Current Assets:
Cash $ 55,000
Inventories 285,000
Others 180,000
Total Current Assets 520,000
Plant Assets (net) 815,000
Intangible Assets:
Patents (net) 25,000
Goodwill (net) 15,000
Total Assets 1,375,000
Liabilities and Equity
Liabilities:
Income taxes payable $ 36,000
Others 440,000
Total Liabilities 476,000
Common stock, $ 10 par 400,000
Additional paid capital 365,000
Retained Earnings 134,000 899,000
Total 1,375,000
Consolidation of Partially Owned Subsidiary on Date
of Purchase type Business Combination:

On December 31, 2020 Peter Corporation Ltd, issued

57,000 shares of it $ 1 par common stock (current fair
value $ 20 a share) to stockholders of Sun Company in
exchange for 38,000 of the 40,000 outstanding shares of
Sun’s $ 10 per common stock in a purchase type business
combination. Thus, Peter Corporation acquired a 95%
interest (38,000/ 40,000=95 %) in Sun which becomes
Peter’s subsidiary. There was no contingent consideration.
Out of Pocket costs of the combination, paid in cash by
Peter on December 31, 2020 were as follows;-
Out of Pocket Costs of Business Combination

Finders and Legal fees relating to Business combination 52,250

Costs associated with SEC registration statement 72,750
---------
Total 125,000

Financial statements of Peter Corporation and Sun

Company for their fiscal year ended December 31, 2020
prior to the business combination were as follows. There
were no intercompany transactions before business
combination.
 Peter Corporation and Sun Company
Separate Financial Statements (Prior to Purchase type Business
combination) For the year ended December 31, 2020

Peter Co Sun Co.

Income Statement
Net Sales $ 5, 500,000 1,000,000
Costs and expenses
Costs of goods sold 3,850,000 650,000
Operating expenses 925,000 170,000
Interest expenses 75,000 40,000
Income Taxes expenses 260,000 56,000
------------------------------
Total 5,110,000 916,000
------------------------------
Net income 390,000 84,000
 Statement of Retained Earnings
Retained earnings at the beginning of the Year 810,000 290,000
Add: Net income 390,000 84,000
Subtotal 1,200,000 374,000
Less: Dividend 150,000 40,000
Retained Earnings at the end of the year 1,050,000 334,000

Balance Sheets
Assets
Cash 200,000 100,000
Inventories 800,000 500,000
Other current assets 550,000 215,000
Plant Assets (net) 3,500,000 1,100,000
Goodwill (net) 100,000 ---
Total Assets 5,150,000 1,915,000
 Liabilities and Share holders Equity
Income tax payable 100,000 16,000
Other liabilities 2,450,000 930,000
Common stock, 10 $ par 1,000,000 ---------
Common Stock, 5 $ par ---------- 400,000
Additional paid in capital 550,000 235,000
Retained Earnings 134,000 334,000
Total 5,150,000 1,915,000

On December 31, 2020, Current fair values of Sun Company’s

identifiable assets and liabilities were the same as their carrying
amounts except for the following assets.
Inventories 526,000
Plant Assets (net) 1,290,000
Lease hold 30,000
Sun Company did not prepare journal entries related to
the business combination because Sun is continuing
as a separate corporation and generally accepted
accounting principles do not accept the write-up of
assets of a going on company to current fair values.
You are required to record journal entries and
consequence procedure to complete business
combination for Peter Company.
 Peter Corporation (Combinor)
Journal Entries
December 31, 2020
Investment in Sun Company common stock 1,140,000
(57,000X20)
Common Stock (57,000X1) `57,000
Paid in Capital Excess of Par 1,083,000
(To record the issue of 57,000 shares of Common stock for
38,000 of the 40,000 outstanding shares of Sun Company
common stock in a purchase-type business combination)
Investment in Sun Company common stock 52,250
Paid in Capital in excess of Par 72,750
Cash 125,000
(To record payment of out packet costs of business
combination with sun company)
Ledger Accounts in the Books of Peter Corporation (Combinor)

Cash Account
Date Explanation Debit Credit Balance
Dec 31 2020 Balance Forward 200,000dr
“ Out of Pocket Exp 125,000 75,000dr

Investment in Sun Company Common Stock

Date Explanation Debit Credit Balance
Dec 31 2020 Issuance of common stock 1,140,000 1,140,000dr
“ Direct out of Pocket Exp 52,250 1,192,250 dr

Common Stock, Dollar1 Par

Date Explanation Debit Credit Balance
Dec 31 2020 Balance forward 1,000,000cr
“ Issuance of Common stock 57,000 1,057,000cr
 Paid in Capital in Excess of Par
Date Explanation Debit Credit Balance
Dec 31 2020 Balance Forward 550,000cr
“ Issuance of Common stock 1,083,000 1,633,000cr
Costs of issuing common stock
in Business Combination 72,750 1,560,0250cr

Working paper for Consolidated Balance Sheet:

Due to the complexity in the minority interest in the net
assets of a partially owned subsidiary and the
measurement of goodwill acquired in the business
combination, it advisable to use working paper for
preparation of a Consolidated Balance Sheet for a parent
company and its partially owned subsidiary on the date of
the purchase-type business combination.
Procedure for Elimination:
The preparation of the elimination for a parent company
and partially owned purchased subsidiary parallels that for
a wholly owned purchased subsidiary described already.
First the intercompany accounts are reduced to Zero as
shown below as a journal entry.
Journal entry for eliminating Intercompany
transactions:
Common stock: Sun 400,000
Additional Paid in Capital: Sun 235,000
Retained earnings: Sun 334,000
(969,000)
Investment in Sun Company Common stock (Peter)
1,192,250
The footing of 969,000 of the debit items of the partial combination
above represents the carrying amount of the net assets of Sun
Company and is $ 223,250 less than the credit item of $ 1,192,250.
Part of this 223,250 difference is the excess of the total of the cost of
Peter Corporation’s investment in Sun Company and the minority
interest in Sun Company’s net assets over the carrying amounts of
Sun’s identifiable assets. This excess may be computed as follows;-
Difference between current fair values and carrying amounts of
combine's identifiable assets:
Current Fair Carrying Excess/
Values Amounts Shortage
Inventories 526,000 500,000 26,000
Plant Assets (Net) 1,290,000 1,100,000190,000
Leasehold 30,000 30,000
Total 1,846,000 1,600,000246,000
Under current generally accepted accounting principles the foregoing
differences are not entered in Sun Company’s Accounting records.
Thus, to confirm with the requirements of purchases accounting, the
differences must be reflected in the Consolidated Balance Sheet of
Peter Corporation and its subsidiary by means of the elimination
which is continued below.

Common stock: Sun 400,000

Additional Paid in Capital: Sun 235,000
Retained earnings: Sun 334,000
Inventories: Sun (526,000- 500,000) 26,000
Plant Assets (net) Sun (1,290,000-1,100,000)190,000
Leasehold-Sun 30,000 1,215,000
Investment in Sun Company Common Stock- Peter 1,192,250
The revised footing of 1,215,000 of the debit items of the above
partial elimination represents the current fair value of Sun
Corporation’s identifiable tangible and intangible net assets on
December 31, 2020.
Two items now must be recorded to complete the elimination for
Peter Corporation and its subsidiary. First, the minority interest in the
identifiable net assets (at current fair value) of Sun Company is
recorded by a credit. The minority interest is computed as follows.

Computation of Minority interest of Combine in identifiable net

assets:
Current fair value of Sun Company’s identifiable net assets
-as per the above Calculation 1,215,000
Minority interest in Sun company 5%
Therefore, Minority interest of Combine = 1,215,000x5/100= 60,750
Second, the goodwill acquired by Peter Corporation in the business combination with
Sun Corporation is recorded by debit. The goodwill is computed as below.
Computation of Goodwill acquired by Combiner:
Cost of Peter Corporation’s 95% interest in Sun company 1,192,250
Less: Current fair value of Sun Company’s identifiable net assets
- acquired by Peter (1,215,000x 95/100) 1,154,250
Goodwill 38,000
The working paper elimination for Peter Corporation and subsidiary may now be
completed as follows:
Common Stock –Sun 400,000
Additional Paid in Capital Excess 235,000
Retained earnings-Sun 334,000
Inventories-Sun (526,000-500,000) 26,000
Plant Assets- Sun (1,290,000-1,100,000) 190,000
Leasehold-Sun 30,000
Goodwill (net)-Peter (1,192,250-1,154,250) 38,000
Investment in Sun Company Common stock – Peter 1,192,250
Minority Interest in net assets of subsidiary 60,750
(To eliminate temporary investment and equity account of subsidiary on date of
business combination to allocate excess of cost over carrying amount of intangible
assets acquired with remainder to goodwill and to establish minority interest in
identifiable net assets of subsidiary on date of business combination)
 Working Paper for Consolidated Balance Sheet:
Peter Corporation and subsidiary
Working paper for Consolidated Balance Sheet
December 31, 2020
----------------------------------------------------------------------------------------------
Assets Peter Sun Elimination Consolidated
Comp. Comp Increase/( Decrease)
Cash 75,000 100,000 175,000
Inventories 800,000 500,000 (a) 26,000 1,326,000
Other CA 550,000 215,000 765,000
Investment in Sun
Common- Stock 1,192,250 (a) (1,192,250)
Plant Assets (net) 3,500,000 1,100,000 (a) 190,0004,790,000
Leasehold (a) 30,000 30,000
Goodwill (net) 100,000 (a) 38,000 138,000
----------------------------------------------------------------------
Total Assets6,217,250 1,915,000 (908,250) 7,224,000
---------------------------------------------------------------------
Liabilities& Stockholders’ Equity
Income tax payable 100,000 16,000 116,000
Other liabilities 2,450,000 930,000 3,380,000
Minority interest in net assets
-of subsidiary (a) 60,750 60,750
Common Stock $1 Par 1,057,000 1,057,000
Common Stock $10 Par 400,000 (a) (400,000)
Additional paid in capital 1,560,250 235,000 (a) (235,000) 1,560,250
Retained Earnings 1,050,000 334,000 (a)(334,000) 1,050,000
----------------------------------------------------------------------
Total 6,217,250 1,915,000 (908,250) 7,224,000
---------------------------------------------------------------------
 Consolidated Balance Sheet for Partially owned Subsidiary:
Peter Corporation and subsidiary
Consolidated Balance Sheet
December 31, 2020
Assets
Current Assets:
Cash 175,000
Inventories 1,326,000
Other Current Assets 765,000
Plant Assets (net) 4,790,000
Intangible Assets:
Goodwill 138,000
Leasehold 30,000 168,000
Total Assets 7,224,000
Liabilities& Stockholders Equity
Liabilities:
Income taxes Payable 116,000
Others 3,380,000
Minority interest in Subsidiary 60,750
Total Liabilities 3,356,750
Common stock 1 $ Par 1,057,000
Additional Paid in Capital 1,560,250
Retained Earnings 1,050,000 3,667,250
Total Liabilities & Stockholders’ Equity 7,224,000