Worksheet for Consolidated Financial Statements

Cost Model (Partial Goodwill)

December 31, 2020 (1st Year Acquisition)
Income Statement Parent Subsidiary
Sales 1,500,000 730,000
Dividend income 108,000
Total revenue 1,608,000 730,000
Cost of Goods sold 1,000,000 350,000
Depreciation Expense
Amortization Expense
Operating Expenses 300,000 150,000
Goodwill Impairment Loss
Total Cost and Expenses 1,300,000 500,000
Net income 308,000 230,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 308,000 230,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 198,250
Subsidiary 11,000
Net Income, from above 308,000 230,000
Total 506,250 241,000
Dividends Paid
Parent Co. 0
Subsidiary 135,000
Retained Earnings, 12/31 to Balance Sheet 506,250 106,000
Balance Sheet
Cash 438,900 139,400
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 40,000
Delivery equipment 160,000 15,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 150,000

TOTAL 1,118,650 214,600

Accumulated depreciation-Store eqpt. 167,400 16,000
Accumulated depreciation-Delivery eqpt. 96,000 7,000
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 506,250 106,000
Non-controlling Interest

TOTAL 1,118,650 214,600

DR. CR. Consolidated
2,230,000
108,000 0
2,230,000
12,000 1,362,000
2,500 2,500
400 400
450,000
6,360 6,360
1,821,260
408,740
42,787 -42,787
365,953

198,250
11,000 0
365,953
564,203

0
135,000 0
564,203

578,300
71,950
12,000 12,000 29,000
4,000 315,000
3,000 172,000
4,000 14,000
63,600 6,360 57,240
60,800
89,200 0
1,237,490
16,000 2,000 169,400
7,000 500 96,500
400 400
24,600
 80,000
127,000
50,000 0
138,000
15,000 0
564,203
27,000 15,200
6400
42,787 37,387
377,647 377,647 1,237,490
Worksheet for Consolidated Financial Statements
Cost Model (Partial Goodwill)
December 31, 2021 (Second Year Acquisition)
Income Statement Parent
Sales 1,800,000
Dividend income 135,000
Total revenue 1,935,000
Cost of Goods sold 1,000,000
Depreciation Expense
Amortization Expense
Operating Expenses 300,000
Goodwill Impairment Loss
Total Cost and Expenses 1,300,000
Net income 635,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 635,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 506,250
Subsidiary
Net Income, from above 635,000
Total 1,141,250
Dividends Paid
Parent Co. 0
Subsidiary
Retained Earnings, 12/31 to Balance Sheet 1,141,250
Balance Sheet
Cash 1,073,900
Accounts Receivable 67,850
Inventories 22,900
Store equipment 279,000
Delivery equipment 160,000
Patents 0
Goodwill 0
Investment in Subsidiary 150,000

TOTAL 1,753,650
Accumulated depreciation-Store eqpt. 167,400
Accumulated depreciation-Delivery eqpt. 96,000
Accumulated amortization
Accounts Payable 4,000
Bonds Payable 80,000
Common Stock 127,000
Common Stock
Additional Paid In Capital 138,000
Additional Paid In Capital
Retained Earnings 1,141,250
Non-controlling Interest

TOTAL 1,753,650
Subsidiary DR. CR.
900,000
135,000
900,000
400,000
2,500
400
200,000
6,360
600,000
300,000
59,420
300,000

18,280 76,000
106,000 106,000
300,000
406,000

168,750 168,750
237,250

270,650
4,100
6,100 12,000 12,000
40,000 4,000
15,000 3,000
10,000 4,000
63,600 12,720
76,000 136,800
89,200
345,850
16,000 16,000 4,000
7,000 7,000 1,000
800
20,600
 50,000 50,000

15,000 15,000
237,250
2,980 34,200
33,750 6400
59,420
345,850 608,290 608,290
Consolidated
2,700,000
0
2,700,000
1,400,000
2,500
400
500,000
6,360
1,909,260
790,740
-59,420
731,320

563,970
0
731,320
1,295,290

0
0
1,295,290

1,344,550
71,950
29,000
315,000
172,000
14,000
50,880

0
1,997,380
171,400
97,000
800
24,600
 80,000
127,000
0
138,000
0
1,295,290

63,290
1,997,380
Worksheet for Consolidated Financial Statements
Cost Model (Full Goodwill)
December 31, 2020 (1st Year Acquisition)
Income Statement Parent Subsidiary
Sales 1,500,000 730,000
Dividend income 108,000
Total revenue 1,608,000 730,000
Cost of Goods sold 1,000,000 350,000
Depreciation Expense
Amortization Expense
Operating Expenses 300,000 150,000
Goodwill Impairment Loss
Total Cost and Expenses 1,300,000 500,000
Net income 308,000 230,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 308,000 230,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 198,250
Subsidiary 11,000
Net Income, from above 308,000 230,000
Total 506,250 241,000
Dividends Paid
Parent Co. 0
Subsidiary 135,000
Retained Earnings, 12/31 to Balance Sheet 506,250 106,000
Balance Sheet
Cash 438,900 139,400
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 40,000
Delivery equipment 160,000 15,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 150,000

TOTAL 1,118,650 214,600

Accumulated depreciation-Store eqpt. 167,400 16,000
Accumulated depreciation-Delivery eqpt. 96,000 7,000
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 506,250 106,000
Non-controlling Interest

TOTAL 1,118,650 214,600

DR. CR. Consolidated
2,230,000
108,000 0
2,230,000
12,000 1,362,000
2,500 2,500
400 400
450,000
7,950 7,950
1,822,850
407,150
41,197 -41,197
365,953

198,250
11,000 0
365,953
564,203

0
135,000 0
564,203

578,300
71,950
12,000 12,000 29,000
4,000 315,000
3,000 172,000
4,000 14,000
79,500 7,950 71,550
60,800
89,200 0
1,251,800
16,000 2,000 169,400
7,000 500 96,500
400 400
24,600
 80,000
127,000
50,000 0
138,000
15,000 0
564,203
27,000 15,200
22300
41,197 51,697
393,547 393,547 1,251,800
Worksheet for Consolidated Financial Statements
Cost Model (Full Goodwill)
December 31, 2021 (Second Year Acquisition)
Income Statement Parent
Sales 1,800,000
Dividend income 135,000
Total revenue 1,935,000
Cost of Goods sold 1,000,000
Depreciation Expense
Amortization Expense
Operating Expenses 300,000
Goodwill Impairment Loss
Total Cost and Expenses 1,300,000
Net income 635,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 635,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 506,250
Subsidiary
Net Income, from above 635,000
Total 1,141,250
Dividends Paid
Parent Co. 0
Subsidiary
Retained Earnings, 12/31 to Balance Sheet 1,141,250
Balance Sheet
Cash 1,073,900
Accounts Receivable 67,850
Inventories 22,900
Store equipment 279,000
Delivery equipment 160,000
Patents 0
Goodwill 0
Investment in Subsidiary 150,000

TOTAL 1,753,650
Accumulated depreciation-Store eqpt. 167,400
Accumulated depreciation-Delivery eqpt. 96,000
Accumulated amortization
Accounts Payable 4,000
Bonds Payable 80,000
Common Stock 127,000
Common Stock
Additional Paid In Capital 138,000
Additional Paid In Capital
Retained Earnings 1,141,250
Non-controlling Interest

TOTAL 1,753,650
Subsidiary DR. CR.
900,000
135,000
900,000
400,000
2,500
400
200,000
7,950
600,000
300,000
59,420
300,000

18,280 76,000
106,000 106,000
300,000
406,000

168,750 168,750
237,250

270,650
4,100
6,100 12,000 12,000
40,000 4,000
15,000 3,000
10,000 4,000
79,500 15,900
76,000 136,800
89,200
345,850
16,000 16,000 4,000
7,000 7,000 1,000
800
20,600
 50,000 50,000

15,000 15,000
237,250
4,570 34,200
33,750 22300
59,420
345,850 627,370 627,370
Consolidated
2,700,000
0
2,700,000
1,400,000
2,500
400
500,000
7,950
1,910,850
789,150
-59,420
729,730

563,970
0
729,730
1,293,700

0
0
1,293,700

1,344,550
71,950
29,000
315,000
172,000
14,000
63,600

0
2,010,100
171,400
97,000
800
24,600
 80,000
127,000
0
138,000
0
1,293,700

77,600
2,010,100
Worksheet for Consolidated FINANCIAL STATEMENTS
EQUITY METHOD (Partial Goodwill)
December 31, 2020
Income Statement Parent Subsidiary
Sales 1,500,000 730,000
Investment Income 165,720
Total revenue 1,665,720 730,000
Cost of Goods sold 1,000,000 350,000
Depreciation Expense 38,567
Amortization Expense
Operating Expenses 300,000 150,000
Goodwill Impairment Loss
Total Cost and Expenses 1,338,567 500,000
Net income 327,153 230,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 327,153 230,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 198,250
Subsidiary 11,000
Net Income, from above 327,153 230,000
Total 525,403 241,000
Dividends Paid
Parent Co. 210,161
Subsidiary 96,400
Retained Earnings, 12/31 to Balance Sheet 315,242 144,600
Balance Sheet
Cash 197,859 178,000
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 24,000
Delivery equipment 160,000 8,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 238,600

TOTAL 966,209 230,200

Accumulated depreciation-Store eqpt. 195,300 0
Accumulated depreciation-Delivery eqpt. 106,667 0
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 315,242 144,600
Non-controlling Interest

TOTAL 966,209 230,200

Worksheet for Consolidated Financial Statements

EQUITY METHOD (Partial Goodwill)
December 31, 2021

Income Statement Parent Subsidiary

Sales 1,800,000 900,000
Investment income 231,320
Total revenue 2,031,320 900,000
Cost of Goods sold 1,000,000 400,000
Depreciation Expense 38567
Amortization Expense
Operating Expenses 300,000 200,000
Goodwill Impairment Loss
Total Cost and Expenses 1,338,567 600,000
Net income 692,753 300,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 692,753 300,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 315,242
Subsidiary 144,600
Net Income, from above 692,753 300,000
Total 1,007,995 444,600
Dividends Paid
Parent Co. 403,198
Subsidiary 177,840
Retained Earnings, 12/31 to Balance Sheet 604,797 266,760
Balance Sheet
Cash 436,933 300,160
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 24,000
Delivery equipment 160,000 8,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 327,648
 TOTAL 1,294,331 352,360
Accumulated depreciation-Store eqpt. 223,200 0
Accumulated depreciation-Delivery eqpt. 117,334 0
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 604,797 266,760
Non-controlling Interest

TOTAL 1,294,331 352,360

 Consolidation Workpaper- Yea

(E1)
DR. CR. Consolidated
2,230,000
165,720 0
2,230,000
12,000 1,362,000
2,500 41,067
400 400 (E2)
450,000
6,360 6,360
1,859,827
370,173
43,020 -43,020
327,153

198,250
11,000 0 (E3)
327,153
525,403

- 210,161
96,400 0
315,242

375,859
71,950
12,000 12,000 29,000 (E4)
12,000 315,000
4,000 172,000
4,000 14,000
63,600 6,360 57,240 (E5)
60,800
89,200
88,600 0
1,035,049
0 2,000 197,300
0 500 107,167
400 400
24,600
80,000
127,000
50,000 0
 138,000
15,000 0
315,242
19,280 15,200
6400
43,020 45,340
420,880 420,880 1,035,049

Consolidation Workpaper- Yea

DR. CR. Consolidated

2,700,000
231,320 0
2,700,000 (E1)
1,400,000
2,500 41,067
400 400
500,000
6,360 6,360
1,947,827 (E2)
752,173
59,420 -59,420
692,753

315,242
144,600 0
692,753
1,007,995

- 403,198 (E3)
177,840 0
604,797

737,093
71,950
0 29,000
10,000 313,000
3,500 171,500
3,600 13,600
57,240 6,360 50,880 (E5)
167,680
 70,920
89,048 0
1,387,023
2,000 225,200 (E6)
500 117,834
400 400
24,600
80,000
127,000
50,000 0
138,000
15,000 0
604,797
35,568 41,920
3420
59,420 69,192
619,508 619,508 1,387,023
Consolidation Workpaper- Year of Acquisition

Common Stock-Subsidiary 50,000

Retained Earnings- Subsidiary 11,000
APIC 15,000
Investment in Subsidiary 60,800
Non-controlling Interest 15,200

Innventories 12,000
Store Equipment 12,000
Delivery Equipment 4,000
Patents 4,000
Goodwill 63,600
Non-controlling Interest 6,400
Investment in Subsidiary 89,200

Cost of Goods Sold 12,000

Depreciation Expense 2,500
Amortization Expense 400
Goodwill Impairment Loss 6,360
Inventories 12,000
Accum. Depn- store eqpt 2,000
Accum. Depn- delivery eqpt 500
Accumulated Amortization 400
Goodwill 6,360

Investment Income 165,720

NCI 19,280
Dividends Paid-subsidiary 96,400
Investment In subsidiary 88,600
NCI in Net Income 43,020
NCI 43,020
Consolidation Workpaper- Year of Acquisition

Common Stock 50,000

APIC 15,000
Retained earnings 144,600
Investment in Subsidiary 167,680
NCI 41,920

Store equipment 10,000

Delivery Equipment 3,500
Patent 3,600
Goodwill 57,240
NCI 3,420
Investment in Subsidiary 70,920

Depreciation Expense 2,500

Amortization Expense 400
Goodwil Impairment Loss 6,360
Accum. Depn.-Store Eqpt 2,000
Accum. Depn.-Delivery eqpt 500
Accumulated Amortization 400
Goodwill 6,360

Investment Income 231,320

NCI 35,568
 Dividends Paid-subsidiary 177,840
Investment in Subsidiary 89,048

NCI in Net Income 59,420

NCI 59,420
Worksheet for Consolidated FINANCIAL STATEMENTS
EQUITY METHOD (Full Goodwill)
December 31, 2020
Income Statement Parent Subsidiary
Sales 1,500,000 730,000
Investment Income 165,720
Total revenue 1,665,720 730,000
Cost of Goods sold 1,000,000 350,000
Depreciation Expense 38,567
Amortization Expense
Operating Expenses 300,000 150,000
Goodwill Impairment Loss
Total Cost and Expenses 1,338,567 500,000
Net income 327,153 230,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 327,153 230,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 198,250
Subsidiary 11,000
Net Income, from above 327,153 230,000
Total 525,403 241,000
Dividends Paid
Parent Co. 210,161
Subsidiary 96,400
Retained Earnings, 12/31 to Balance Sheet 315,242 144,600
Balance Sheet
Cash 197,859 178,000
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 24,000
Delivery equipment 160,000 8,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 238,600

TOTAL 966,209 230,200

Accumulated depreciation-Store eqpt. 195,300 0
Accumulated depreciation-Delivery eqpt. 106,667 0
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 315,242 144,600
Non-controlling Interest

TOTAL 966,209 230,200

Worksheet for Consolidated Financial Statements

EQUITY METHOD (Partial Goodwill)
December 31, 2021

Income Statement Parent Subsidiary

Sales 1,800,000 900,000
Investment income 231,320
Total revenue 2,031,320 900,000
Cost of Goods sold 1,000,000 400,000
Depreciation Expense 38567
Amortization Expense
Operating Expenses 300,000 200,000
Goodwill Impairment Loss
Total Cost and Expenses 1,338,567 600,000
Net income 692,753 300,000
NCI in Net Income-Subsidiary
Net income to Retained Earnings 692,753 300,000
Statament of Retained Earnings
Retained Earnings, 1/1
Parent Co. 315,242
Subsidiary 144,600
Net Income, from above 692,753 300,000
Total 1,007,995 444,600
Dividends Paid
Parent Co. 403,198
Subsidiary 177,840
Retained Earnings, 12/31 to Balance Sheet 604,797 266,760
Balance Sheet
Cash 436,933 300,160
Accounts Receivable 67,850 4,100
Inventories 22,900 6,100
Store equipment 279,000 24,000
Delivery equipment 160,000 8,000
Patents 0 10,000
Goodwill 0
Investment in Subsidiary 327,648

TOTAL 1,294,331 352,360

Accumulated depreciation-Store eqpt. 223,200 0
Accumulated depreciation-Delivery eqpt. 117,334 0
Accumulated amortization
Accounts Payable 4,000 20,600
Bonds Payable 80,000
Common Stock 127,000
Common Stock 50,000
Additional Paid In Capital 138,000
Additional Paid In Capital 15,000
Retained Earnings 604,797 266,760
Non-controlling Interest

TOTAL 1,294,331 352,360

 Consolidation Workpaper- Year of

(E1)
DR. CR. Consolidated
2,230,000
165,720 0
2,230,000
12,000 1,362,000
2,500 41,067
400 400 (E2)
450,000
7,950 7,950
1,861,417
368,583
41,197 -41,197
327,386

198,250
11,000 0 (E3)
327,386
525,636

- 210,161
96,400 0
315,475

375,859
71,950
12,000 12,000 29,000 (E4)
12,000 315,000
4,000 172,000
4,000 14,000
79,500 7,950 71,550 (E5)
60,800
89,200
88,600 0
1,049,359
0 2,000 197,300
0 500 107,167
400 400
24,600
80,000
 127,000
50,000 0
138,000
15,000 0
315,475
19,280 15,200
22300
41,197 59,417
436,547 436,547 1,049,359

Consolidation Workpaper- Year of

DR. CR. Consolidated
2,700,000
231,320 0
2,700,000 (E1)
1,400,000
2,500 41,067
400 400
500,000
6,360 6,360
1,947,827 (E2)
752,173
59,420 -59,420
692,753

315,242
144,600 0
692,753
1,007,995

- 403,198 (E3)
177,840 0
604,797

737,093
71,950
0 29,000
10,000 313,000
3,500 171,500
 3,600 13,600
57,240 6,360 50,880 (E5)
167,680
70,920
89,048 0
1,387,023
2,000 225,200 (E6)
500 117,834
400 400
24,600
80,000
127,000
50,000 0
138,000
15,000 0
604,797
35,568 41,920
3420
59,420 69,192
619,508 619,508 1,387,023
Consolidation Workpaper- Year of Acquisition

Common Stock-Subsidiary 50,000

Retained Earnings- Subsidiary 11,000
APIC 15,000
Investment in Subsidiary 60,800
Non-controlling Interest 15,200

Innventories 12,000
Store Equipment 12,000
Delivery Equipment 4,000
Patents 4,000
Goodwill 79,500
Non-controlling Interest 22,300
Investment in Subsidiary 89,200

Cost of Goods Sold 12,000

Depreciation Expense 2,500
Amortization Expense 400
Goodwill Impairment Loss 7,950
Inventories 12,000
Accum. Depn- store eqpt 2,000
Accum. Depn- delivery eqpt 500
Accumulated Amortization 400
Goodwill 7,950

Investment Income 165,720

NCI 19,280
Dividends Paid-subsidiary 96,400
Investment In subsidiary 88,600
NCI in Net Income 41,197
NCI 41,197
Consolidation Workpaper- Year of Acquisition

Common Stock 50,000

APIC 15,000
Retained earnings 144,600
Investment in Subsidiary 167,680
NCI 41,920

Store equipment 10,000

Delivery Equipment 3,500
Patent 3,600
Goodwill 57,240
NCI 3,420
Investment in Subsidiary 70,920

Depreciation Expense 2,500

Amortization Expense 400
Goodwil Impairment Loss 6,360
Accum. Depn.-Store Eqpt 2,000
Accum. Depn.-Delivery eqpt 500
Accumulated Amortization 400
Goodwill 6,360
Investment Income 231,320
NCI 35,568
Dividends Paid-subsidiary 177,840
Investment in Subsidiary 89,048

NCI in Net Income 59,420

NCI 59,420