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All instructions are in the word document. All tabs in the excel file see and check the tab where to write the answer do not change any template in excel or create new tab, do it in the labeled tab for answer but make sure all tabs instructions are read. You will understand more once you read the word and excel.
ACCT 5018 Project – Fall 2024
Read the information below very carefully and the requirements that follow.
You should have the excel file “ACCT 5018 F24 Project” open as you review the following
information. All solutions can be completed using the excel file.
See the “REQUIRED” section below for important information.
Information related to Y3
On December 31, Y3, Aylmer Industries Inc. purchased 85% of the outstanding shares of
Belmont Inc. The purchase price is indicated on the excel file. The entry has been recorded on
the books of Aylmer. Aylmer uses the cost method to record investments.
The Statement of Financial Position (Balance Sheet) for both Aylmer Inc and Belmont Inc are
provided in the excel file for the year ended December 31, Y3. On the excel file, please see the
various tabs. Note, there are details for the fair value of certain Belmont assets – see the tabs
“Belmont – Inventory Details” and “Belmont – Fixed Assets Details”. Those tabs will help with
your calculations. Note the remaining useful life of the assets at December 31, Y3 (use for
depreciation purposes).
Information related to Y4
The complete financial statements (Income Statement, Statement of Retained Earnings and
Statement of Financial Position) for both Aylmer Inc and Belmont Inc are provided in the excel
file for the year ended December 31, Y4. See the excel tab labelled “Financial Statements – Dec
31, Y4”.
Additional information for the financial statements and transactions related to Y4:
•
•
Aylmer owed Belmont $143,000.
Intercompany sales (upstream) were $325,000. There was no beginning inventory. The
markup on sales is 30% and 20% of the sales remaining in ending inventory.
Income taxes can be ignored for calculations.
Required:
1. For December 31, Y3:
a. Use the tab “Consolidation Dec 31, Y3”:
ACCT 5018 Project – Fall 2024
b. Calculate consolidated goodwill, acquisition differential, and NCI assuming
Aylmer uses the fair value enterprise method.
c. Prepare any entries needed for the consolidation.
d. Prepare a consolidated statement of financial position at the date of acquisition
(December 31, Y3).
e. Show all your work – using the worksheet approach.
2. For December 31, Y4:
a. Use the tab “Consolidation Dec 31, Y4”:
b. Prepare the consolidated financial statements (Income Statement, Statement of
Retained Earnings and Statement of Financial Position) at December 31, Y4.
c. Show all your work – such as the differential amortization schedule, inventory
calculations, worksheets and any journal entries that may be required.
3. At December 31, Y4:
a. Use the tab “Disclosure ~ Notes”:
b. Prepare any appropriate disclosures that should be included with the financial
statements of Aylmer Inc. HINT: refer to chapters in the textbook for notes.
OTHER IMPORTANT INFORMATION
1. Round financial statements to the nearest dollar.
2. Show ALL calculations
ACCT 5018 – PROJECT (Fall 2024)
IMPORTANT – DO THIS FIRST
Before you begin this project enter your Student ID in the yellow highlighted b
Student Name
Student ID
Section
Urfa Jamil
1050689
Please – enter as a numbe
ACCT-5018-(01OL-01PT)-24F
PLEASE REFER TO THE WORD DOCUMENT FOR ADDITONAL INSTRUC
Please – enter as a number – NO CHARACTERS – no ” ” marks
ACCT 5018 – PROJECT (Fall 2024)
Included in this file are the following tabs:
1 Consolidation Dec 31, Y3
2 Consolidation Dec 31, Y4
3 Disclosure ~ Notes
(Fall 2024)
Required
Consolidated Balance Sheet @ Dec 31, Y3 (include worksheet and calculations)
Consolidated Financial Statements @ Dec 31, Y4 (include ALL calculations)
Any notes you feel are necessary (THERE ARE NOTES!).
TOTAL
Points
20.00
35.00
5.00
60.00
Grade
–
0.00%
0.00%
0.00%
–
0.00%
Aylmer Industries Inc.
Statement of Financial Position
At December 31, Y3
ASSETS
Current Assets
Cash and Cash Equivalents
Investment in Belmont Inc.
Accounts Receivable (net)
Inventories, net
Prepaid and other current assets
Total Current Assets
Property and equipment (net)
Intangible Assets, net
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Other current liabilities
Current portion of long term debt
Total Current Liabilities
Long Term Debt
Total Liabilities
SHAREHOLDERS EQUITY
Common Stock
Retained Earnings
Total Shareholders’ Equity
TOTAL LIABITILIES & SHAREHOLDERS’ EQUITY
$
1,089,862
4,560,138
4,800,000
525,000
255,000
11,230,000
9,865,400
140,000
$
21,235,400
$
830,500
546,000
1,000,000
2,376,500
3,000,000
5,376,500
5,850,000
10,008,900
15,858,900
21,235,400
–
Belmont Inc.
Statement of Financial Position
At December 31, Y3
ASSETS
Current Assets
Cash and Cash Equivalents
Accounts Receivable (net)
Inventories, net
Prepaid and other current assets
Total Current Assets
Property and equipment (net)
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Other current liabilities
Current portion of long term debt
Total Current Liabilities
Long Term Debt
Total Liabilities
SHAREHOLDERS EQUITY
Common Stock
Retained Earnings
Total Shareholders’ Equity
TOTAL LIABITILIES & SHAREHOLDERS’ EQUITY
$
250,000
1,294,651
507,200
41,612
2,093,463
3,242,285
$
5,335,748
$
1,350,345
1,350,345
1,474,656
2,825,000
1,000,000
1,510,748
2,510,748
5,335,748
0.42
Belmont Inc.
Details of Accounts Receivable
at December 31, Y3
Customer Name
4210119 Ont Ltd
43rd Street Place
6 Star Services
Booktime Services
Box Top Inc
Briar Forest Corp
Cavhill Industries
Colborne Corp
Copper Gallery
Dairy Ashford Corp
Demilo Inc
Dustin Enterprises
Greenway Place
Grosvenor Limited
Houston Consultants
Jesse Blackstone
Joseph Company
Lawrence Brothers
Mapleton Express
OKC Limited
Oxford Distributing
Paper Brands
Westella Drive LTD
Woodplank Inc.
Yellow Street Ltd
Zephyr Limited
TOTAL
Total Due
0-30 Days
31-60 days
61-90 days
50,094
4,994
13,031
3,666
154
9,956
–
111
161,181
6,625
65,675
99,797
49,049
2,942
122,223
1,313
18,540
6,499
83,336
180,511
64,873
13,877
48,464
22,680
101,407
58,561
19,048
23,376
20,535
105,790
14,410
1,065
1,328
1,546
55,894
6,494
31,310
99,643
13,031
1,443
61,999
1,313
50,199
131
30,699
13,031
1,499
60,113
–
6,499
36,785
64,452
31,548
6,844
1,319
9,846
31,599
18,846
18,936
9,856
9,884
12,636
6,944
39,941
64,161
31,661
7,033
10,699
9,846
36,510
19,844
9,856
10,651
9,664
6,411
664
318
664
318
910
1,294,651
538,103
412,931
254,477
91-120 days Over 120
18,540
6,610
50,344
1,664
36,446
1,494
32,649
19,460
112
3,664
36,944
1,055
–
1,554
1,494
649
411
46,546
1,065
67,981
21,159
Note – carrying value = fair value
Belmont Inc.
Inventory Items on Hand
at December 31, Y3
Item #
Description
Cost
Fair
Value
14566SA
145669A
147502A
147503A
147504A
360010X
360011X
360012X
360013X
598750W
598751W
598752W
X205 30 HP Machine
X205 30 HP Machine
X205 30 HP Machine
X205 30 HP Machine
X205 30 HP Machine
G350 60 HP Machine
G350 60 HP Machine
G350 60 HP Machine
G350 60 HP Machine
L500 100HP Machine
L500 100HP Machine
L500 100HP Machine
13,500.00
13,500.00
13,500.00
13,500.00
13,500.00
35,900.00
35,900.00
35,900.00
35,900.00
98,700.00
98,700.00
98,700.00
13,000.00
13,000.00
13,000.00
13,000.00
13,000.00
32,500.00
32,500.00
32,500.00
32,500.00
96,000.00
96,000.00
96,000.00
$ 507,200.00 $ 483,000.00
Belmont Inc.
Fixed Asset Details
at December 31, Y3
Category
Asset
Number
Land
Description
1 acre – 11th Line
401 Main Street
.5 acre 402 Main Street
Acquisition
Date
REMAINING
Useful
Life (Yrs)
05/31/Y0
09/01/Y1
09/01/Y1
Cost
Depreciation
Expense
Y3
100,000
200,000
20,000
–
320,000
–
1,655,000
150,000
945,000
41,375
3,750
23,625
2,750,000
68,750
8,590
2,300
25,000
12,300
9,800
3,000
35,600
18,750
220,500
18,165
7,200
12,300
16,800
1,000
859
230
2,500
1,230
980
300
3,560
1,875
22,050
1,817
720
1,230
980
42
391,305
38,372
3,461,305
107,122
Building
2018-01
2018-09
2019-09
401 Main Street
410 Main Street
406 Main Street
09/01/Y1
02/1/Y1
08/1/Y1
40
40
40
Equipment
2018-02
2018-04
2018-05
2018-06
2018-07
2018-08
2019-10
2019-11
2019-12
2019-13
2019-14
2019-15
2020-16
2020-17
2013 Ford F150 Truck
Toro lawn mower
2007 John Deere Excavator
2009 Cat Backhoe
2004 Case Tractor
3 wagons
2018 Chev Truck
2010 Toyota Tundra
2017 Kenworth
2015 Loader
1996 Grader
Flat-bed Trailer
2019 Grader
1 wagon
TOTAL
02/01/Y0
06/30/Y0
09/01/Y0
09/01/Y0
10/01/Y0
10/01/Y0
03/01/Y1
05/31/Y1
07/31/Y1
08/01/Y1
12/01/Y1
12/01/Y1
05/01/Y2
07/01/Y2
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Accumulated
Depreciation
to 12/31/Y3
NBV
Fair
Value
–
100,000
200,000
20,000
325,000
500,000
150,000
–
320,000
96,542
7,188
33,469
1,558,458
142,813
911,531
137,198
2,612,802
2,577
690
7,500
3,690
2,940
900
7,120
3,750
44,100
3,633
1,440
2,460
980
42
6,013
1,610
17,500
8,610
6,860
2,100
28,480
15,000
176,400
14,532
5,760
9,840
15,820
958
81,822
309,483
219,020
3,242,285
2,000,000
350,000
800,000
6,000
1,700
25,000
10,000
6,000
1,500
28,500
10,000
180,000
16,000
5,000
6,000
22,000
500
DO NOT USE
THIS
COLUMN FOR
GRADING
Use this Sheet for December 31, Y3 Consolidated Balance Sheet
-
Income Statements
For the Year Ended December 31, Y4
Aylmer Inc
Sales
Dividend Income
$
Belmont Inc
4,000,000 $ 2,300,000
132,000
–
Total Revenue
Expenses:
Cost of goods sold
Wage Expense
Other Expenses
Depreciation Expense
4,132,000
2,300,000
2,698,500
532,000
159,000
100,000
1,455,000
251,000
89,600
45,000
Total Expenses
3,489,500
1,840,600
Net Income
$
642,500 $
459,400
Statement of Retained Earnings
For the Year Ended December 31, Y4
Aylmer Inc
Balance, January 1, Y4
Net Income
$
Dividends
Balance, December 31, Y4
$
Belmont Inc
10,008,900
642,500
1,510,748
459,400
10,651,400
250,000
1,970,148
165,000
10,401,400 $ 1,805,148
Statements of Financial Position
At December 31, Y4
Aylmer Inc
ASSETS
Current Assets
Cash and Cash Equivalents
Investment in Belmont Inc.
Accounts Receivable (net)
Inventories, net
Prepaid and other current assets
$
Belmont Inc
768,462 $ 397,650
4,560,138
4,298,000
1,159,535
425,600
516,500
203,450
321,900
Total Current Assets
10,255,650
2,395,585
Property and equipment (net)
Intangible Assets, net
9,766,750
130,000
3,135,163
–
TOTAL ASSETS
LIABILITIES
$
20,152,400 $ 5,530,748
Current Liabilities
Accounts payable and accrued liabilities
Other current liabilities
Current portion of long term debt
$
845,000 $
556,000
500,000
725,600
400,000
Total Current Liabilities
Long Term Debt
1,901,000
2,000,000
1,125,600
1,600,000
Total Liabilities
3,901,000
2,725,600
SHAREHOLDERS EQUITY
Common Stock
Retained Earnings
5,850,000
10,401,400
1,000,000
1,805,148
Total Shareholders’ Equity
16,251,400
2,805,148
TOTAL LIABITILIES & SHAREHOLDERS’ EQUITY
20,152,400
5,530,748
–
0
DO NOT USE
THIS
COLUMN FOR
GRADING
Use this Sheet for December 31, Y4 Financial Statements
-
Use this sheet for any claculations as needed
DO NOT USE
THIS
COLUMN FOR
GRADING
Use this Sheet for December 31, Y4 Disclosure and Notes
-
