Chapter 5

Introduction to this program

This worksheet contains spreadsheets that complete the consolidated worksheet after the
student inputs the eliminating journal entries on the consolidated worksheet.
1. To activate the process, a debit must be entered into the debit elimination entry column.
2. There is a separate column, in which to enter the number or letter to key the entry (e.g. (1) or (a)).
3. In some cases, balance sheet accounts may need to be added. The row to enter the accounts
will contain a shaded cell.
4. If two rows in the elimination columns contain brackets (i.e. [ or { ), this means that two rows can
be used for the same account. In other words, more than one debit to an account is possible.
5. Each worksheet may be printed before any numbers are inserted and used to solve the problem
manually.
6. The last worksheet (labeled JE) contains three blank journal entry pages. These can be used to
prepare eliminating journal entries for any or all of the homework problems. This sheet can
be duplicated for each problem if needed.

Problem 5-4 (part D)

PORTER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2009
Porter
Company
Income Statement
Sales
Dividend Income
Total Revenue
Cost of Goods Sold
Depreciation Expense
Other expense
Total cost & expense
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings
Statement of Retained Earnings
1/1Retained Earnings
Porter Company
Salem Company
Net income from above
Dividends declared
Porter Company
Salem Company
12/31Retained Earnings to
Balance sheet

1,100,000
48,000
1,148,000

450,000

900,000
40,000

200,000
30,000

60,000
1,000,000
148,000

50,000
280,000
170,000

148,000

170,000

148,000

12/31 Noncontrolling Interest

Total liabilities & equity

Cr.

Noncontrolling
Interest

Consolidated
Balance

Cr.

Noncontrolling
Interest

Consolidated
Balance

450,000

230,000
170,000

(90,000)
(60,000)
558,000

Balance Sheet
Cash
70,000
Accounts Receivable
260,000
Inventory
240,000
Investment in Salem Company
850,000
Difference between implied and book value
Land
Plant and Equipment
360,000

Accounts Payable
Notes Payable
Capital Stock:
Porter Company
Salem Company
Retained Earnings from above
1/1 Noncontrolling Interest

Eliminations
Dr.

500,000

Porter
Company

Total assets

Salem
Company

340,000
Salem
Company
65,000
190,000
175,000

320,000
280,000

1,780,000

1,030,000

132,000
90,000

110,000
30,000

1,000,000
558,000

550,000
340,000

1,780,000

1,030,000

Eliminations
Dr.

Problem 5-5
PALMER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2013
Palmer
Company
INCOME STATEMENT
Sales
Cost of Goods Sold
Gross margin
Depreciation Expense
Other expenses
Income from operations
Dividends income
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings

Stevens
Company

620,000
430,000
190,000
30,000
60,000
100,000
31,500
131,500

340,000
240,000
100,000
20,000
35,000
45,000

131,500

45,000

Eliminations
Dr.

Cr.

Noncontrolling
Interest

Consolidated
Balance

Cr.

Noncontrolling
Interest

Consolidated
Balance

45,000

STATEMENT OF RETAINED EARNINGS

1/1Retained Earnings
Palmer Company
297,600
Stevens Company
Net income from above
Dividends declared
Palmer Company
Stevens Company
12/31Retained Earnings to
Balance sheet

131,500
(120,000)

(35,000)
309,100
Palmer
Company

BALANCE SHEET
Cash
201,200
Accounts Receivable
221,000
Inventory
100,400
Investment in Stevens Company
1,000,000
Difference between implied and book value
Equipment
450,000
Accumulated depreciation
(300,000)
Land
Total assets
Accounts Payable
Bonds Payable
Capital Stock:
Palmer Company
Stevens Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

210,000
45,000

220,000
Stevens
Company
151,000
173,000
81,000

300,000
(140,000)

360,000

290,000

2,032,600

855,000

323,500
400,000

135,000

1,000,000
309,100

500,000
220,000

2,032,600

855,000

Eliminations
Dr.

Problem 5-11 (part D)

PORTER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2012
Porter
Company

INCOME STATEMENT
Sales
Equity Income
Total Revenue
Cost of Goods Sold
Depreciation Expense
Other expense
Total cost & expense
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings

Salem
Company

1,100,000
136,000
1,236,000

450,000

900,000
40,000

200,000
30,000

60,000
1,000,000
236,000

50,000
280,000
170,000

236,000

170,000

Eliminations
Dr.

Noncontrolling
Interest

Cr.

450,000

STATEMENT OF RETAINED EARNINGS

1/1Retained Earnings
Porter Company
620,000
Salem Company
Net income from above
Dividends declared
Porter Company
Salem Company
12/31Retained Earnings to
Balance sheet

236,000

Accounts Payable
Notes Payable
Capital Stock:
Porter Company
Salem Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

230,000
170,000

(60,000)
766,000

70,000
260,000
240,000
1,058,000

Difference between implied & book value

Land
Plant and Equipment
360,000
Total assets

###

(90,000)

Porter
Company

BALANCE SHEET
Cash
Accounts Receivable
Inventory
Investment in Salem Company

Consolidated
Balance

###
###

340,000
Salem
Company

###
Eliminations
Dr.

Noncontrolling
Interest

Cr.

65,000
190,000
175,000

320,000
280,000

1,988,000

1,030,000

132,000
90,000

110,000
30,000

1,000,000
766,000

550,000
340,000

###
###

1,988,000

1,030,000

###

Consolidated
Balance

Problem 5-12 (part B)

PALMER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2013
Palmer
Company
INCOME STATEMENT
Sales
Cost of Good Sold
Gross margin
Depreciation Expense
Other expenses
Income from operations
Equity in subsidiary income
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings

Stevens
Company

620,000
430,000
190,000
30,000
60,000
100,000
40,500
140,500

340,000
240,000
100,000
20,000
35,000
45,000

140,500

45,000

Eliminations
Dr.

Cr.

Noncontrolling
Interest

Consolidated
Balance

Cr.

Noncontrolling
Interest

Consolidated
Balance

45,000

STATEMENT OF RETAINED EARNINGS

1/1Retained Earnings
Palmer Company
315,600
Stevens Company
Net income from above
Dividends declared
Palmer Company
Stevens Company
12/31Retained Earnings to
Balance sheet

140,500

210,000
45,000

(120,000)
(35,000)
336,100
Palmer
Company

BALANCE SHEET
Cash
Accounts Receivable
Inventory
Investment in Stevens Company

220,000
Stevens
Company

201,200
221,000
100,400
1,027,000

151,000
173,000
81,000

450,000
(300,000)

300,000
(140,000)

360,000

290,000

2,059,600

855,000

323,500
400,000

135,000

0
Equipment
Accumulated depreciation
Land
Total assets
Accounts Payable
Bonds Payable
Capital Stock:
Palmer Company
Stevens Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

1,000,000
336,100

500,000
220,000

2,059,600

855,000

Eliminations
Dr.

Problem 5-13
PRESS COMPANY AND SUBSIDIARY
Consolidated Balance Sheet Workpaper
January 1, 2011

Cash
Receivable
Inventory
Investment in Sensor Company
Buildings
Equipment
Land
Pantents
Total
Liabilities:
Common Stock:
Press Company
Sensor Company
Other Contributed Capital:
Press Company
Sensor Company
Retained Earnings:
Press Company
Sensor Company
Revaluation Capital
Noncontrolling Interest in Net Assets
Total

Press
Company
265,000
422,500
216,500
800,000
465,000
229,000
188,000
167,500
2,753,500

Sensor
Company
38,000
76,000
124,000

667,000

249,000

322,000
246,467
140,978
190,444
1,137,889

700,000
300,000
846,000
164,000
540,500
220,000
204,889
2,753,500

1,137,889

Eliminations
Dr.

Cr.

Noncontrolling Consolidated
Interest
Balance

Problem 5-14 (part B)

PUSH COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2011
Push
Company
INCOME STATEMENT
Sales
Dividend Income
Total revenue
Cost of goods sold expense
Depreciation Expense
Other expenses
Total Cost & Expense
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings
STATEMENT OF RETAINED EARNING
1/1Retained Earnings
Push Company
WayDown Company
Net income from above
Dividends declared
Push Company
WayDown Company
12/31Retained Earnings to
Balance sheet

1,050,000
40,000
1,090,000

400,000

850,000
35,000
65,000
950,000
140,000

180,000
50,000
50,000
280,000
120,000

140,000

120,000

Accounts Payable
Notes Payable
Revaluation Capital-WayDown Co.
Capital Stock:
Push Company
WayDown Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

Eliminations
Dr.

Cr.

Noncontrolling Consolidated
Interest
Balance

Cr.

Noncontrolling Consolidated
Interest
Balance

400,000

480,000
140,000

102,500
120,000

(100,000)
(50,000)
520,000

Push
Company
BALANCE SHEET
Cash
Accounts Receivable
Inventory
Investment in WayDown Company
Land
Plant and Equipment
Goodwill
Total assets

WayDown
Company

80,000
250,000
230,000
820,000
350,000
1,730,000
160,000
50,000

172,500

Way Down
Company
50,000
170,000
150,000
362,500
300,000
185,000
1,217,500
100,000
20,000
425,000

1,000,000
520,000

500,000
172,500

1,730,000

1,217,500

Eliminations
Dr.

Problem 5-15 (part D)

PORTER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2012
Porter
Company
INCOME STATEMENT
Sales
Equity Income
Total Revenue
Cost of Goods Sold
Depreciation Expense
Other expense
Total cost & expense
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings
STATEMENT OF RETAINED EARN
1/1Retained Earnings:
Porter Company
Salem Company
Net income from above
Dividends declared:
Porter Company
Salem Company
12/31Retained Earnings to
Balance sheet

1,100,000
77,200
1,177,200

450,000

900,000
40,000

200,000
30,000

60,000
1,000,000
177,200

50,000
280,000
170,000

177,200

170,000

177,200

Accounts Payable
Notes Payable
Capital Stock:
Porter Company
Salem Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

Cr.

Noncontrolling
Interest

Consolidated
Balance

Cr.

Noncontrolling
Interest

Consolidated
Balance

450,000

230,000
170,000

(90,000)
(60,000)
633,600

70,000
260,000
240,000
925,600

Difference between implied and book value

Land
Plant and Equipment
360,000
Total assets

Eliminations
Dr.

546,400

Porter
Company
BALANCE SHEET
Cash
Accounts Receivable
Inventory
Investment in Salem Company

Salem
Company

340,000
Salem
Company
65,000
190,000
175,000

320,000
280,000

1,855,600

1,030,000

132,000
90,000

110,000
30,000

1,000,000
633,600

550,000
340,000

1,855,600

1,030,000

Eliminations
Dr.

Problem 5-16 (part B)

PALMER COMPANY AND SUBSIDIARY
Consolidated Statement Workpaper
For the Year Ended December 31, 2013
Palmer
Company
INCOME STATEMENT
Sales
Cost of Good Sold
Gross margin
Depreciation Expense
Other expenses
Income from operations
Equity in subsidiary income
Net/Consolidated income
Noncontrolling Interest in income
Net income to retained earnings

Capital Stock:
Palmer Company
Stevens Company
Retained Earnings from above
1/1 Noncontrolling Interest
12/31 Noncontrolling Interest
Total liabilities & equity

Noncontrolling
Interest

Consolidated
Balance

45,000

960,000
670,000
290,000
50,000
95,000
145,000
35,100
180,100

135,100

45,000

180,100

201,200
221,000
100,400
915,800

209,800
210,000
45,000

10,000

200,000
180,100
(120,000)

(35,000)
220,000
Stevens
Company

(35,000)
10,000

165,000

Eliminations
Dr.

Cr.

Noncontrolling
Interest

269,900
Consolidated
Balance

151,000
173,000
81,000

352,200
394,000
181,400
915,800

300,000
(140,000)

750,000
(440,000)

360,000

290,000

650,000

1,948,400

855,000

2,803,400

323,500
400,000

135,000

458,500
400,000

Difference between implied and book value

Equipment
450,000
Accumulated depreciation
(300,000)

Accounts Payable
Bonds Payable

Cr.

340,000
240,000
100,000
20,000
35,000
45,000

Palmer
Company

Land
ADD ACCOUNT HERE
Total assets

Eliminations
Dr.

620,000
430,000
190,000
30,000
60,000
100,000
35,100
135,100

STATEMENT OF RETAINED EARNINGS

1/1Retained Earnings
Palmer Company
209,800
Stevens Company
Net income from above
135,100
Dividends declared
Palmer Company
(120,000)
Stevens Company
12/31Retained Earnings to
Balance sheet
224,900

BALANCE SHEET
Cash
Accounts Receivable
Inventory
Investment in Stevens Company

Stevens
Company

1,000,000

1,000,000

224,900

500,000
220,000

10,000

1,948,400

855,000

10,000

500,000
165,000

665,000

269,900

665,000
2,793,400

Problem:
Entry
Number

Accounts Used

Debit

10

Credit

11

Entry
Number

Accounts Used

Debit

12

Credit

13

Entry
Number

Accounts Used

Debit

14

Credit

15