Chapter 9 – Consolidation Ownership Issues
P9-21 (continued)
g. Consolidation entries:
Basic Consolidation Entry:
Preferred Stock
200,000
Premium on Preferred Stock
5,000
Common Stock
500,000
Additional Paid-In Capital
797,600
Retained Earnings
1,650,000
Income from Jacobs Jacuzzi
156,000
Dividends Income—Preferred
8,000
NCI in NI of Jacobs Jacuzzi
120,000
Dividends declared, Preferred
40,000
Dividends declared, Common
10,000
Investment in Jacobs Jacuzzi CS
1,909,800
Investment in Jacobs Jacuzzi PS
42,000
NCI in NA of Jacobs Jacuzzi
1,434,800
Excess Value (Differential) Calculations:
NCI 40%
+
Presley Pools
60%
=
Goodwill
Beginning Balance
26,800
40,200
67,000
Changes
(10,400)
(15,600)
(26,000)
Ending Balance
16,400
24,600
41,000
Amortized Excess Value Reclassification Entry:
Goodwill impairment loss
26,000
Income from Jacobs Jacuzzi
15,600
NCI in NI of Jacobs Jacuzzi
10,400
Excess Value (Differential) Reclassification Entry:
Goodwill
41,000
Investment in Jacobs Jacuzzi
24,600
NCI in NA of Jacobs Jacuzzi
16,400
