Pet Corp acquires 80% of She on January 1, 2011 for $320,000 in cash She has: Capital
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Pet Corp acquires 80% of She on January 1, 2011 for $320,000 in cash She has: Capital stock of $200,000 and a Retained Earning of $100,000 In the purchase it was identified that an Equipment was underestimated by $100,000 Detail at the end of the Pet and She period as follows:
Combined and Retained Earnings Income statement for the year Finished on December 31, 2011
Complete the exercise the "Consolidate wp"
Combined Income and Retained | ||||||||
Earnings Statement for the Year | ||||||||
Ended December 31, 2011 | Adj/Cons | Total | ||||||
80% | Entries | Consolidate | ||||||
Fart | She | Ref | Dr. | Cr | Ref | Total | ||
Sales | $180,000.0 | $50,000.0 | 230,000.0 | |||||
Interco sales | 50,000.0 | 50,000.0 | ||||||
Income from She | $15,600.0 | |||||||
Interest income | 10,000.0 | 10,000.0 | ||||||
Cost of goods sold | (110,000.0) | (30,000.0) | (140,000.0) | |||||
Interco cost | (30,000.0) | (30,000.0) | ||||||
Operating expenses | (30,000.0) | (18,000.0) | (48,000.0) | |||||
Interest expense | (18,000.0) | (18,000.0) | ||||||
Controlling share of net income | $37,600.0 | $32,000.0 | $54,000.0 | |||||
Add: Beginning retained earnings | 294,000.0 | 100,000.0 | 394,000.0 | |||||
Deducted: Dividends | (20,000.0) | (15,000.0) | (35,000.0) | |||||
Ending retained earnings | $311,600.0 | $117,000.0 | $413,000.0 | |||||
Balance Sheet at December 31, 2011 | ||||||||
Cash | $56,000 | $41,000 | 97,000.0 | |||||
Accounts receivable | 120,000.0 | 60,000.0 | 180,000.0 | |||||
Dividends receivable | 12,000.0 | 12,000.0 | ||||||
Inventories | 100,000.0 | 50,000.0 | 150,000.0 | |||||
Plant and equipment | 500,000.0 | 200,000.0 | 700,000.0 | |||||
Accumulated depreciation | (100,000.0) | (50,000.0) | (150,000.0) | |||||
Investment in She stock | 323,600.0 | 323,600.0 | ||||||
Investment in Pet bonds | 100,000.0 | 100,000.0 | ||||||
Total assets | $1,011,600.0 | $401,000.0 | $1,412,600.0 | |||||
Accounts payable | $80,000.0 | $69,000.0 | 149,000.0 | |||||
Dividends payable | 20,000.0 | 15,000.0 | 35,000.0 | |||||
10% bonds payable | 200,000.0 | 200,000.0 | ||||||
Common stock | 400,000.0 | 200,000.0 | 600,000.0 | |||||
Retained earnings | 311,600.0 | 117,000.0 | 428,600.0 | |||||
Total equities | $1,011,600.0 | $401,000.0 | $ - | $ - | $1,412,600.0 | |||
0.0 | 0.0 | 0.0 |
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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