consolidations

Project Description:

problem

on january 1, 20x1, pluto company acquired 80% of the common stock of saturn company for $500,000. on this date saturn had shareholders’ equity of $400,000. any excess of cost over book value is attributable to a trademark, which is to be amortized over 20 years.

during 20x1 and 20x2, pluto has appropriately accounted for its investment in saturn using the simple equity method.

on january 1, 20x2, pluto held merchandise acquired from saturn for $30,000. during 20x2, saturn sold merchandise to pluto for $100,000, of which $20,000 is held by pluto on december 31, 20x2.

on december 31, 20x2, pluto still owes saturn $20,000 for merchandise acquired in december.

gross profit % for all sales is 40%

required:

prepare the consolidation worksheet and supporting schedules for the year ending december 31, 20x2. attached are the trial balances provided in the excel template.

assume any accumulated amortization adjustments are credited directly to the asset account.
Skills Required:
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Price Type: Negotiable

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