The following financial statements were prepared on December 3 1 , Year 6 . BALANCE SHEET Pearl
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Question:
The following financial statements were prepared on December Year
BALANCE SHEET
Pearl Silver
Cash $ $
Accounts receivable
Inventory
Plant and equipment
Accumulated depreciation
Investment in Silver Company at cost
$ $
Liabilities $ $
Common shares
Retained earnings
$ $
INCOME STATEMENT
Sales $ $
Dividend income
Cost of sales
Miscellaneous expenses
Administrative expense
Income tax expense
Net income $ $
RETAINED EARNINGS STATEMENT
Balance, January $ $
Net income
Dividends
Balance, December $ $
Additional Information
Pearl purchased of the outstanding voting shares of Silver for $ on July Year at which time Silvers retained earnings were $ and accumulated depreciation was $ The acquisition differential on this date was allocated as follows:
to undervalued inventory
to equipmentremaining useful life years
Balance to goodwill
During Year a goodwill impairment loss of $ was recognized, and an impairment test conducted as at December Year indicated that a further loss of $ had occurred.
Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses.
Silver owes Pearl $ on December Year
Required:
a Prepare consolidated financial statements on December Year
Related Book For
College Mathematics For Business Economics Life Sciences And Social Sciences
ISBN: 9780321945518
13th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen
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