Rolling River Company Acct 510 Consolidation Case File:Rolling River Company – C
ID: 2414161 • Letter: R
Question
Rolling River Company
Acct 510
Consolidation Case
File:Rolling River Company – Consolidation Case
Situation: You have just been hired by Rolling River Company as their accountant. The CEO is excited to have the company’s first 4-year degree accounting major on the team (previously they have only used internal clerical accounting staff supported by an outside consultant). The outside consultant is a CPA and the cost of keeping the CPA was too expensive for month-to-month accounting. In your interview with the CEO you did mention that you had recently completed an advanced accounting class that included accounting for business combinations.
Business Profile: Rolling River Company is a distributor of unique four “4” wheel bicycles that have a 360 degree turning radius. The business currently offers three non-electric bicycles; single rider, two person, and three/four person. Only one rider has the ability to steer but each seated rider has the ability to pedal. The business just completed fiscal year 2016 which was another successful year.
While the company has been growing organically for the past few years the board members (who represent the shareholders) of Rolling River Company do not see enough growth in the existing business and have been pushing the CEO to make a strategic purchase.
Rolling River Company has been in talks to purchase a company in Denmark. The company manufactures one key product, the “Denmark Wheel.” The Denmark Wheel is an electric wheel that can be placed on almost any bike to give riders the choice of either pedaling or simply engaging the electric wheel. The CEO strongly believes this acquisition could double U.S. sales and be a key factor in taking the business international.
Exhibits:
A – Denmark Wheel Company 12/31/16 balance sheet (page 3)
B – Rolling River Company 12/31/16 balance sheet (page 4)
C – Denmark Wheel Company 12/31/17 income statement, statement of retained earnings, and balance sheet (pages 5-6)
D – Rolling River Company 12/31/17 income statement, statement of retained earnings, and balance sheet (pages 7-8)
Note: The 12/31/16 account balances also represent the pre-acquisition 1/1/17 account balances (they are the same).
The CEO has made the following requests:
Request A Prepare the Rolling River Company consolidated balance sheet as of 1/1/17 assuming Rolling River Company purchased 80% of the Denmark wheel Company stock (STOCK ACQUISITION) for $13 million ($1 million in cash and $12 million in Rolling River shares). Note: Rolling River Shares (market value $50/share). Provide enough detail for your CEO to understand the accounting Include the following: 1. Prepare the STOCK ACQUISITION journal entry to record the acquisition (provided by instructor) Debit $13,000,000 Credit 1/1/17Investment in Subsidiary - Denmark Wheel Company Cash Common Stock APIC 1,000,000 240,000 $11,760,000 Purchase 80% of Denmark Wheel Company shares by paying l $1,000,000 cash and issuing to the Denmark Wheel Company shareholders (the 80% that are selling their shares). 240,000 shares $ 50 Market Value $ 1 ParValue 49 APIC 2. 3. 4. Prepare a CAD Prepare the workpaper entries (show separate from the consolidation workpaper) Prepare the 1/1/17 consolidated balance sheet workpaper (DATE OF Acquisition - Chapter 3)Explanation / Answer
What are you proud to have finished at your final job?
This question gives the interviewer the opportunity to learn your strengths. Easily saying: 'I extended social media engagement' isn't going to provide your interviewer a sense of what you entire. Alternatively, inform them the way you multiplied social media engagement for the enterprise and why your help was useful.
It's primary to master the art of the common-or-garden brag to make a excellent impression. Feeling pleased with your accomplishments is high-quality. Eternally discussing your price to the final company you worked for gives the impact you are boastful
How would your earlier supervisor describe you?
Why are you being requested? An interviewer will use this question to gauge how you see your self in manager eyes, and to investigate how good you get together with management.
Don't forget, when you've given (or plan to present) your previous supervisor as a reference, the interviewer can verify your reply to this question, so its nice to be as honest as possible. Speak about your attitude toward work, potential to work in a group and the positive facets of your working relationship together with your old manager. If you don't get along with your old supervisor, try not to let this have an effect on your response, and as a substitute speak about your position inside your earlier staff.
Why are you looking to depart your present job?
The interviewer desires to grasp that you've certainly proposal by means of your choice to depart your current job, and that you realize what you want out of your subsequent function.
Under no circumstances use this question as an excuse to whinge about your present or previous company, as it is going to make you sound unprofessional! As a substitute, take the possibility to explain areas wherein you'd like to be more challenged, initiatives you haven't had the possibility to work on, or effectively complex on why this move is proper for you at this time. Center of attention on the positive facets of what else you have got to present professionally and how it fits within the function you're making use of for.
Inform me a few time whilst you tousled at work. How did you fix your mistake?
Everyone makes errors, however not all people has the capacity to swiftly remedy them on their possess.
This question isn't a lure. It can be the enterprise's method of finding out in case you are competent to repair your mistakes. Honestly talk a few mistake you made, but center of attention in general on how you solved the concern.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.