25.

(20 minutes) (Preparation of a consolidated balance sheet)*

CASEY COMPANY AND CONSOLIDATED SUBSIDIARY KENNEDY
Worksheet for a Consolidated Balance Sheet
January 1, 2015
Cash
Accounts receivable
Inventory
Investment in Kennedy

Casey
457,000
1,655,000
1,310,000
3,300,000

Kennedy
172,500
347,000
263,500
-0-

Buildings (net)
Licensing agreements
Goodwill
Total assets

6,315,000
-0347,000
13,384,000

2,090,000
3,070,000
-05,943,000

Accounts payable
Long-term debt
Common stock
Additional paid-in cap.
Retained earnings
Total liab. & equities

(394,000)
(3,990,000)
(3,000,000)
-0(6,000,000)
(13,384,000)

(393,000)
(2,950,000)
(1,000,000)
(500,000)
(1,100,000)
(5,943,000)

Adjust. & Elim.

(A) 382,000
(A) 426,000

(S) 1,000,000
(S) 500,000
(S) 1,100,000
3,408,000

Consolidated
629,500
2,002,000
1,573,500
(S) 2,600,000
(A) 700,000
-08,787,000
(A) 108,000
2,962,000
773,000
16,727,000
(787,000)
(6,940,000)
(3,000,000)
-0(6,000,000)
3,408,000 (16,727,000)

*Although this solution uses a worksheet to compute the consolidated amounts, the
problem does not require it.