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Consolidated Financial Overview

This document provides a template for entering account descriptions and financial information for a parent company (RAV) and its subsidiary (ENS) for consolidation purposes. The user is instructed to enter the company names and year end in column B6, B7, and B9. The template includes income statements, statements of retained earnings, and statements of financial position for the parent and subsidiary to be completed in both the source and Canadian dollar currencies.

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Nguyen
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© All Rights Reserved
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25 views31 pages

Consolidated Financial Overview

This document provides a template for entering account descriptions and financial information for a parent company (RAV) and its subsidiary (ENS) for consolidation purposes. The user is instructed to enter the company names and year end in column B6, B7, and B9. The template includes income statements, statements of retained earnings, and statements of financial position for the parent and subsidiary to be completed in both the source and Canadian dollar currencies.

Uploaded by

Nguyen
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

STEP 1: Enter the Account descriptions to use in the template in the boxes below.

Rename the
existing codes with the Account names from the problem provided.

Balance Sheet
Current Assets
1 Cash
2 AR
3 Inventory
4
5
6
7
8
9
10 Long-term Assets
11 Land
12 Building
13 Equipment
14 Investment in ENS
15 Internet Domain Names
16 Goodwill
17 Deferred Tax
18 Current Liabilities
19 Accounts Payable
20
21
22
23
24
25
26
27
28 Long-term Liabilities
29 Long term debt
30
31
32
33
34
35
36 Equity
37 Common Shares
38
39
40
41
42
43
44 Retained Earnings
45 Retained Earnings
46 NCI - RE
47
48
49
50
51 Dividends
52
53 Income Statement
54 Revenue
55 Sales
56 Other Revenues
57 Investment Income
58
59
60
61
62 Cost of Sales
63 Cost of Goods Sold
64
65
66
67
68
69
70 Operating Expenses
71 Amort Exp
72 Goodwill Impairment
73
74
75
76
77
78 Other Inc/Exp
79 Interest and Other Expenses
80 Income Tax Expense
81
82 OCI Accounts
83 OCI1
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Step 2: Enter your information in column B6, B7, and B9. Complete details for the question by entering the companys' names and the associated year end. E
Company and the Parent Company.

Name Parent Company Name RAV


ID Sub Company Name ENS
Homework Reference Year End

Source Currency Exchange Canadian Dollar


Rate
ENS RAV ENS
Consolidated Statement of Profit
for the Year Ended
Sales $ 3,330,000 $ 5,020,000 1.0000 $ 3,330,000.00
Other Revenues $ 109,000 1.0000 -
Investment Income $ 250,800 1.0000 -
1.0000 -
1.0000 -
1.0000 -
1.0000 -
3,330,000 5,379,800 3,330,000

Cost of Goods Sold 2,331,000 2,480,000 1.0000 2,331,000


1.0000 -
1.0000 -
1.0000 -
1.0000 -
1.0000 -
1.0000 -
2,331,000 2,480,000 2,331,000
Gross Profit 999,000 2,899,800 999,000

Amort Exp 104,000 208,000 1.0000 104,000


Goodwill Impairment 1.0000 -
1.0000 -
1.0000 -
1.0000 -
1.0000 -
1.0000 -
Operating Income 895,000 2,691,800 895,000

Interest and Other Expenses -448,000 -912,000 1.0000 - 448,000


Income Tax Expense 1.0000 -
1.0000 -

Net Income $ 447,000 $ 1,779,800 $ 447,000

OCI1 1.0000 -
1.0000 -
1.0000 -

Comprehensive Income $ 447,000 $ 1,779,800 $ 447,000

Adjustments to Net Income to Calc Attributable Income

NCI Calculations:
Source Currency Exchange Canadian Dollar
Rate
ENS RAV ENS
Statement of Retained Earnings
For year ended
Retained Earnings $ 279,000 $ 615,000 1.0000 $ 279,000
NCI - RE 1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
Dividends $ (256,000) $ (416,400) 1.0000 $ (256,000)
Net Income 447,000 1,779,800 447,000
Balance, December 31 $ 470,000 $ 1,978,400 $ 470,000

Consolidated Statement of Financial Position


For year ended
Assets
Cash $ 91,000 $ 175,000 1.0000 $ 91,000
AR $ 242,000 $ 261,000 1.0000 $ 242,000
Inventory $ 305,000 $ 626,000 1.0000 $ 305,000
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
Current Assets 638,000 1,062,000 638,000

Land $ 330,000 $ 700,000 1.0000 $ 330,000


Building $ 665,000 $ 870,000 1.0000 $ 665,000
Equipment $ 397,000 $ 722,000 1.0000 $ 397,000
Investment in ENS $ 654,600 1.0000 $ -
Internet Domain Names 1.0000 $ -
Goodwill 1.0000 $ -
Deferred Tax 1.0000 $ -
Long-term Assets 1,392,000 2,946,600 1,392,000
Total Assets 2,030,000 4,008,600 2,030,000

Liabilities
Accounts Payable $ 328,000 $ 481,000 1.0000 $ 328,000
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
Current Liabilities 328,000 481,000 328,000

Long term debt $ 732,000 $ 349,200 1.0000 $ 732,000


1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
Long-term Liabilities 732,000 349,200 732,000
Total Liabilities 1,060,000 830,200 1,060,000

Equity
Common Shares $ 500,000 $ 1,200,000 1.0000 $ 500,000
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
Equity 500,000 1,200,000 500,000

Retained earnings 470,000 1,978,400 470,000

Total Liabilities and Equity $ 2,030,000 $ 4,008,600 $ 2,030,000

Total
s and the associated year end. Enter the financial statement data for the Subsidiary

Canadian Dollar
Eliminations
RAV Dr. Ref Cr. Consolidated

$ 5,020,000 650,000 7 - $ 7,700,000


109,000 72,000 7 - 37,000
250,800 250,800 1 - -
- - - -
- - - -
- - - -
- - - -
5,379,800 7,737,000

2,480,000 135,000 77 650,000 4,296,000


- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,480,000 4,296,000
2,899,800 3,441,000

208,000 - 67 14,000 298,000


- 25,000 6 - 25,000
- - - -
- - - -
- - - -
- - - -
- - - -
2,691,800 3,118,000

- 912,000 - 7 72,000 - 1,288,000


- 96,000 4 5 7 7 54,000 - 42,000
- - - -
$ 178,800.0
$ 1,779,800 $ 1,788,000

- - - -
- - - -
- - - -

$ 1,779,800 $ 1,788,000

- - -
- - -
- - -
-
-
Total $ 1,228,800 $ 790,000 1,788,000

Canadian Dollar
Eliminations
RAV Dr. Ref Cr. Consolidated

$ 615,000 279,000 3 - $ 615,000


$ - - 2 421,600 421,600
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ (416,400) - 1 153,600 - 518,800
1,779,800 1,228,800 Above 790,000 1,788,000
$ 1,978,400 $ 2,305,800
Total $ 1,507,800 $ 1,365,200

$ 175,000 - - $ 266,000
$ 261,000 - 7 182,000 321,000
$ 626,000 - 47 240,000 691,000
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
1,062,000 1,278,000

$ 700,000 150,000 3 - 1,180,000


$ 870,000 10,000 57 125,000 1,420,000
$ 722,000 4,000 36 12,000 1,111,000
$ 654,600 713,200 2 3 4 5 1,367,800 -
$ - 100,000 3 - 100,000
$ - 100,000 36 25,000 75,000
$ - 54,000 77 4,000 50,000
2,946,600 3,936,000
4,008,600 5,214,000

$ 481,000 182,000 7 - 627,000


$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
481,000 627,000

$ 349,200 - - 1,081,200
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
349,200 1,081,200
830,200 1,708,200

$ 1,200,000 500,000 3 - 1,200,000


$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
$ - - - -
1,200,000 1,200,000

1,978,400 1,507,800 Above 1,365,200 2,305,800

$ 4,008,600 $ 5,214,000

$ 3,321,000 $ 3,321,000
STEP 3: Enter all the necessary consolidation journal entries. For the Accounts, select from the desired dropdown list and
amount (ie. debit or credit). Also please enter an appropriate description for each journal entry.

JOURNAL ENTRIES

1
1
1
1
1

2
2
2
2
2

3
3
3
3
3
3
3

4
4
4
4
4

5
5
5
5
5

6
6
6
6
6

7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
EP 3: Enter all the necessary consolidation journal entries. For the Accounts, select from the desired dropdown list and enter the approp
amount (ie. debit or credit). Also please enter an appropriate description for each journal entry.

JOURNAL ENTRIES

Investment in ENS
Dividends
Investment Income
Investment in ENS

Adj Inv Acct under equity method to balance

Investment in ENS
NCI - RE

Establish NCI at beginning of the year

Common Shares
Retained Earnings
Land
Internet Domain Names
Goodwill
Equipment
Investment in ENS
Eliminate SH equity for ENS and establish AD

Income Tax Expense


Investment in ENS
Inventory

Unrealized Profits in Beg Inv

Building
Income Tax Expense
Investment in ENS

<ENTER JOURNAL ENTRY DESCRIPTION HERE>

Equipment
Goodwill
Amort Exp
Goodwill Impairment

Amortization of AD

Sales
Cost of Goods Sold

Cost of Goods Sold


Inventory
Deferred Tax
Income Tax Expense

AR
Accounts Payable

Other Revenues
Interest and Other Expenses

Building
Amort Exp
Income Tax Expense
Deferred Tax

<ENTER JOURNAL ENTRY DESCRIPTION HERE>


own list and enter the appropriate
urnal entry.

DR CR
$ 153,600
$ 153,600
$ 250,800
$ 250,800

$ 421,600
$ 421,600

$ 500,000
$ 279,000
$ 150,000
$ 100,000
$ 100,000
$ 12,000
$ 1,117,000

$ 42,000
$ 63,000
$ 105,000

$ 125,000
$ 50,000
$ 75,000

$ 4,000
$ 25,000
$ 4,000
$ 25,000

$ 650,000
$ 650,000

$ 135,000
$ 135,000
$ 54,000
$ 54,000

$ 182,000
$ 182,000

$ 72,000
$ 72,000

$ 10,000
$ 10,000
$ 4,000
$ 4,000
### $ 3,321,000
Calculation of Acquisition Differential Source
At purchase date Currency
Cost of % of ENS purchased 60% $ 1,260,000

Implied Value at 100% $ 2,100,000


Carrying Amount of net assets in ENS $ 630,000
Acquistion Differential $ 1,470,000

Allocate the Acquisition Differential


Equipment - 24,000
Land 150,000
Internet Domain Names 100,000
Goodwill 1,244,000

Foreign Exchange Gain / (Loss) Source


for Currency

Net Monetary Position at beginning (per B/S)


Income Statement Items:

Net Monetary Position for

Net Monetary Position on (per B/S)

Foreign Exchange Gain / (Loss)

Calculation of Acquisition Differential Source


At Dec 31, Yr4 Currency
Opening
Equipment -$ 24,000
Land $ 150,000
Internet Domain Names $ 100,000
Goodwill $ 1,244,000
$ -

Amortization No Period of Amortizaiton


Equipment 6
Land 1
Internet Domain Names 1
Goodwill 1
1

Ending
Equipment
Land
Internet Domain Names
Goodwill
Exchange Canadian
Rate Dollar
1.0000 $ 1,260,000

1.0000 $ 2,100,000
1.0000 $ 630,000
1.0000 $ 1,470,000

1.0000 - 24,000
1.0000 150,000
1.0000 100,000
1.0000 1,244,000
1.0000 -

Exchange Canadian
Rate Dollar

$ -

1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -
1.0000 $ -

$ -

$ -

$ -

Exchange Canadian
Rate Dollar
1.0000 -$ 24,000
1.0000 $ 150,000
1.0000 $ 100,000
1.0000 $ 1,244,000
1.0000 $ -
$ 1,470,000 Yr5-Yr7 Yr8

- 4,000 - 24,000 12,000 4,000


150,000 150,000 - -
100,000 100,000 - -
1,244,000 1,244,000 - 1,144,000 - 25,000
-

-$ 20,000
$ -
$ -
$ -
$ -
$ 1,470,000
$ 1,450,000
Balance

- 8,000
150,000
100,000
75,000
Cost of Sales Calculation
Opening
Purchases
Ending
0

Other Expenses Calculation


Depreciation Expense
Other Expense
0

Intercompany Sales (upstream) 650,000

Intercompany Rec'le/Pay'le

Intercompany Rent Revenue and Expense

Profit in Inventory
Before Tax Profit
Closing Inventory 450,000 135,000
Beginning Inventory 350,000 105,000

Intercompany Depr Assets

Proceeds 782,000
Carrying Amount 632,000
Unrealized Gain 150,000

Realize Gain per Year 10,000

Realized Gains at End of Yr8 35,000

Unrealized Gains at end of Year 8 115,000

25,000.0
125,000.0
NCI at Beginning of the year
ENS Retained Earnings Balance
Unrealized profit in Beginning Inventory
ENS Common Shares

Unamortized AD
Value of ENS at beg year

NCI of ENS at beginnin of the year


0
0
0
0

0
0
0

650,000 x

182,000 x

72,000

Tax at 40% After tax Profit


54,000 81,000
42,000 63,000 x

60,000 90,000

4,000 6,000

14,000 21,000

46,000 69,000

10,000.0 15,000.0
50,000.0 75,000.0 X
279,000
- 63,000
500,000
716,000
338,000
1,054,000

421,600
ENS Gross Margin % 30%
Sales 3,330,000
COGS 2,331,000

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