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P 7-3

PAD CORPORATION AND SUBSIDIARY


CONSOLIDATION WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2011

75% Adjustments & Eliminations


PAD SUM Debits Credits Consolidated
INCOME STATEMENT
Sales 1,260,000 1,000,000
Gain on plant 20,000 0
Gain on building 40,000 0
Income from Sum 92,000 0

Cost of sales (700,000) (600,000)

Depreciation expense (152,000) (80,000)

Interest expense (40,000) 0


Other expense (92,000) (120,000)
Non-controlling share
Net income 428,000 200,000
RETAINED EARNINGS
Retained earnings - 1/1 300,000 200,000
Net income 428,000 200,000
Dividends (320,000) (160,000)

Retained earnings - end 408,000 240,000


BALANCE SHEET
Cash 54,000 360,000
Bond interest receivable 0 0
Other receivables 80,000 60,000
Inventories 160,000 100,000
Land 180,000 140,000
Buildings-net 300,000 360,000
Equipment-net 280,000 180,000
Investment in Sum stock 674,000 0

Investment in Pad bonds 0 0


Total assets 1,728,000 1,200,000
Accounts payable 100,000 160,000
Bond interest payable 20,000 0
10% bonds payable 400,000 0
Common stock 800,000 800,000
Retained earnings 408,000 240,000
Total equities 1,728,000 1,200,000
Non-controlling interest 0 0
P 7-3
PAD CORPORATION AND SUBSIDIARY
CONSOLIDATION WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2011

75% Adjustments & Eliminations


PAD SUM Debits Credits Consolidated
INCOME STATEMENT
Sales 1,260,000 1,000,000
Gain on plant 0 0
Gain on building 0 0
Income from Sum 162,000 0
Constructive gain 0 0
Cost of sales (700,000) (600,000)

Depreciation expense (152,000) (80,000)

Interest expense (40,000) 0


Other expense (92,000) (120,000)
Non-controlling share
Net income 438,000 200,000
RETAINED EARNINGS
Retained earnings - 1/1 300,000 200,000
Net income 438,000 200,000
Dividends (320,000) (160,000)

Retained earnings - end 418,000 240,000


BALANCE SHEET
Cash 54,000 162,000
Bond interest receivable 0 10,000
Other receivables 80,000 60,000
Inventories 160,000 100,000
Land 180,000 140,000
Buildings-net 300,000 360,000
Equipment-net 280,000 180,000
Investment in Sum stock 792,000 0

Investment in Pad bonds 0 188,000


Total assets 1,846,000 1,200,000
Accounts payable 208,000 160,000
Bond interest payable 20,000 0
10% bonds payable 400,000 0
Common stock 800,000 800,000
Retained earnings 418,000 240,000
Total equities 1,846,000 1,200,000
Non-controlling interest 0 0

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