Accounting Question Answer In Excel

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ACCT 5018- F24– Homework Assignment #3
On July 1, Year 4, Aylmer Co. purchased 80% of the voting shares of Belmont Ltd. for
$562,840. The statement of financial position of Belmont on that date follows.
The accounts receivable of Belmont were collected in October Year 4, and the inventory was
completely sold by May Year 5. Belmont’s fixed assets had a remaining life of 15 years on July
1, Year 4, and the bonds payable mature on June 30, Year 8. The bonds were issued on July 1,
Year 1. The stated rate of interest on the bonds is 6% payable semi-annually. The market rate of
interest was 8% on July 1, Year 4. Tests for impairment of goodwill indicated a loss of $8,369 in
Year 5 and $5,573 in Year 6.
Belmont Ltd.
Balance Sheet
As At July 1, Y4
Carrying
Value
Cash
$
100,000
Accounts Receivable
124,000
Inventory
184,000
Plant Assets
544,000
Total Assets
$
952,000
Current Liabilities
$
Bonds Payable
Common Shares
Retained Earnings
Total Liabilities & Equity
$
Fair
Value
$ 100,000
148,004
252,000
454,000
107,600
$ 107,600
204,000
124,000
516,400
190,534
952,000
The financial statements for Aylmer and Belmont at December 31, Year 6, are presented below.
Aylmer has used the equity method to account for its investment in Belmont.
Aylmer
Cash
Accounts Receivable
Inventory
Other Investments
Investment in Belmont
$
Plant Assets
Belmont
109,000
184,000
324,000
266,666
513,338
$
84,400
118,000
275,000
–
724,000
544,000
Total Assets
$
2,121,004
$ 1,021,400
Current Liabilities
Bonds Payable
$
179,200
319,000
$ 139,800
204,000
304,600
1,318,204
124,000
553,600
Common Shares
Retained Earnings
Total Liabilities & Equity
$
2,121,004
$ 1,021,400
Sales
Equity method income from Belmont
Income from Other investments
$
1,265,000
2,706
26,400
1,294,106
884,000
47,000
64,000
41,000
231,000
1,267,000
27,106
$ 1,204,000
1,204,000
989,000
10,000
54,400
26,800
91,600
1,171,800
$ 32,200
Raw materials used
Change in inventory
Depreciation
Interest expense
Other expenses
Net income
$
Required:
Prepare the consolidated financial statements for the year ended December 31, Year 6.
Use excel to answer these questions. Show calculations as necessary.