Exercise 8-28A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Othello
Nutone, Inc. Corp. Debit Credit
Cash $46,000 $20,000
Accounts receivable, net 81,000 53,000
Note receivable of Nutone – 42,000
Inventory 59,000 84,000
Plant assets, net 289,000 91,000
Investment in Othello 107,000
Other assets 29,000 10,000
Total $611,000 $300,000
Accounts payable $48,000 $20,000
Notes payable 145,000 39,000
Other liabilities 77,000 134,000
Common Stock 105,000 85,000
Retained earnings 236,000 22,000
Total $611,000 $300,000
Elimination
Financial Accounting
Students: Please fill-in areas that are shaded in
light yellow.
Prepare a consolidated balance sheet
Nutone, Inc., owns Othello Corp. The two companies’ individual balance sheets follow:
Nutone, Inc.
Consolidation Work Sheet
Exercise 8-28A
Instructions
1. Prepare a consolidated balance sheet of Nutone, Inc. It is sufficient to complete the consolidation
work sheet. Use Exhibit 8-7 as a model.
2. What is the amount of stockholders’ equity for the consolidated entity?
Requirement 1
Othello Consolidated
Nutone, Inc. Corp. Debit Credit Balance Sheet
Requirement 2
Test Your Knowledge
Elimination
Assets
Cash
Accounts receivable, net
Note receivable from Nutone
Inventory
Investment in Othello
Plant assets, net
Other assets
Total
Liabilities and
Stockholders’ Equity
Accounts Payable
Notes Payable
Other Liabilities
Common Stock
Retained Earnings
Total
Exercise 8-28A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Othello
Nutone, Inc. Corp. Debit Credit
Cash $46,000 $20,000
Accounts receivable, net 81,000 53,000
Note receivable of Nutone – 42,000
Inventory 59,000 84,000
Plant assets, net 289,000 91,000
Investment in Othello 107,000
Other assets 29,000 10,000
Total $611,000 $300,000
Accounts payable $48,000 $20,000
Notes payable 145,000 39,000
Other liabilities 77,000 134,000
Common Stock 105,000 85,000
Retained earnings 236,000 22,000
Total $611,000 $300,000
Nutone, Inc., owns Othello Corp. The two companies’ individual balance sheets follow:
Nutone, Inc.
Consolidation Work Sheet
Financial Accounting
Students: Please fill-in areas that are shaded in
light yellow.
Prepare a consolidated balance sheet
Elimination
Exercise 8-28A
Instructions
1. Prepare a consolidated balance sheet of Nutone, Inc. It is sufficient to complete the consolidation
work sheet. Use Exhibit 8-7 as a model.
2. What is the amount of stockholders’ equity for the consolidated entity?
Requirement 1
Othello Consolidated
Nutone, Inc. Corp. Debit Credit Balance Sheet
46,000 20,000 66,000
81,000 53,000 134,000
Test Your Knowledge
Elimination
Assets
Cash
Accounts receivable, net
59,000 84,000 143,000
Note receivable from Nutone
Inventory
Investment in Othello
Plant assets, net
Other assets
Total
Accounts Payable
Notes Payable
Other Liabilities
Common Stock
Retained Earnings
Total
Exercise 8-29A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Euros
Assets …………..…………..………. 650,000
Liabilities ……….…………..…….. 300,000
Stockholders’ equity:
Common stock……………..… 55,000
Retained earnings……..…….. 295,000
650,000
Financial Accounting
Translate into dollars the balance sheet of North Carolina Leather Goods’ German
subsidiary. When North Carolina Leather Goods acquired the foreign subsidiary, a euro was
worth $1.06. The current exchange rate is $1.326. During the period when retained
earnings were earned, the average exchange rate was $1.19 per euro.
Students: Please fill-in areas that are
shaded in light yellow.
Translate a foreign-currency balance sheet into dollars
Exercise 8-29A
Instructions:
During the period covered by this situation, which currency was stronger, the dollar or
the euro?
Requirement
German Subsidiary:
EUROS
EXCHANGE
RATE
DOLLARS
Assets 650,000
Liabilities 300,000
Stockholders’ equity:
Common stock 55,000
Retained earnings 295,000
Accumulated other comprehensive income:
Foreign-currency translation adjustment
650,000
Enter explanation here.
Test Your Knowledge
Exercise 8-29A, Obj. 4
Student Name
Course Name
Student ID:
Date:
Euros
Assets …………..…………..………. 650,000
Liabilities ……….…………..…….. 300,000
Stockholders’ equity:
Common stock……………..… 55,000
Retained earnings……..…….. 295,000
650,000
Financial Accounting
Translate into dollars the balance sheet of North Carolina Leather Goods’ German
subsidiary. When North Carolina Leather Goods acquired the foreign subsidiary, a euro was
worth $1.06. The current exchange rate is $1.326. During the period when retained
earnings were earned, the average exchange rate was $1.19 per euro.
Students: Please fill-in areas that are
shaded in light yellow.
Translate a foreign-currency balance sheet into dollars
Exercise 8-29A
Instructions:
During the period covered by this situation, which currency was stronger, the dollar or
the euro?
Requirement
German Subsidiary:
EUROS
EXCHANGE
RATE
DOLLARS
Assets 650,000 1.326 861,900$
Test Your Knowledge
Exercise 8-32A, Obj. 6
Student Name
Course Name
Student ID:
Date:
Exercise 8-32A
Instructions
Financial Accounting
Students: Please fill-in areas that are
shaded in light yellow.
Prepare a consolidated balance sheet
Stockman Corp. purchased ten $1,000, 6% bonds of Boltgo Corporation when the market rate of
interest was 7%. Interest is paid semiannually on the bonds, and the bonds will mature in eight years.
Using the PV function in Excel, compute the price Stockman paid (the present value) on the bond
investment.
Test Your Knowledge
Using the PV function in Excel, compute the price Stockman paid (the present value) on the bond
investment.
EXCEL formula =
PV( , , , , )
Exercise 8-32A, Obj. 6
Student Name
Course Name
Student ID:
Date:
Exercise 8-32A
Instructions
Financial Accounting
Test Your Knowledge
Stockman Corp. purchased ten $1,000, 6% bonds of Boltgo Corporation when the market rate of interest
was 7%. Interest is paid semiannually on the bonds, and the bonds will mature in eight years. Using the
PV function in Excel, compute the price Stockman paid (the present value) on the bond investment.
Using the PV function in Excel, compute the price Stockman paid (the present value) on the bond
investment.
Students: Please fill-in areas that are shaded
in light yellow.
Prepare a consolidated balance sheet
Exercise 8-40B, Obj. 4
Student Name
Course Name
Student ID:
Date:
Euros
Assets …………..…………..………. 600,000
Liabilities ……….…………..…….. 200,000
Stockholders’ equity:
Common stock……………..… 45,000
Retained earnings……..…….. 355,000
600,000
Financial Accounting
Students: Please fill-in areas that are
shaded in light yellow.
Translate a foreign-currency balance sheet into dollars
Translate into dollars the balance sheet of Ohio Leather Goods’ Greek subsidiary. When Ohio Leather Goods
acquired the foreign subsidiary, a euro was worth $1.06. The current exchange rate is $1.36. During the
period when retained earnings were earned, the average exchange rate was $1.17 per euro.
Exercise 8-40B
Instructions:
During the period covered by this situation, which currency was stronger, the dollar or
the euro?
Requirement
Greek Subsidiary:
EUROS
EXCHANGE
RATE
DOLLARS
Assets 600,000
Liabilities 200,000
Stockholders’ equity:
Common stock 45,000
Retained earnings 355,000
Accumulated other comprehensive income:
Foreign-currency translation adjustment
600,000
Enter explanation here.
Test Your Knowledge
Exercise 8-40B, Obj. 4
Student Name
Course Name
Student ID:
Date:
Euros
Assets …………..…………..………. 600,000
Liabilities ……….…………..…….. 200,000
Stockholders’ equity:
Common stock……………..… 45,000
Retained earnings……..…….. 355,000
600,000
Translate into dollars the balance sheet of Ohio Leather Goods’ Greek subsidiary. When Ohio Leather Goods
acquired the foreign subsidiary, a euro was worth $1.06. The current exchange rate is $1.36. During the
period when retained earnings were earned, the average exchange rate was $1.17 per euro.
Financial Accounting
Students: Please fill-in areas that are
shaded in light yellow.
Translate a foreign-currency balance sheet into dollars
Exercise 8-40B
Instructions:
During the period covered by this situation, which currency was stronger, the dollar or
the euro?
Requirement
Greek Subsidiary:
EUROS
EXCHANGE
RATE
DOLLARS
Assets 600,000 1.36$ 816,000$
Test Your Knowledge