Trial balances for the companies for the year ended December 31, 20x5 are as follows: Debits...

Transcribed Image Text:

Trial balances for the companies for the year ended December 31, 20x5 are as follows: Debits Cash Accounts receivable Inventory Land Equipment P Co. SCO. 232,500 136,200 142,500 108,000 216,000 108,000 210,000 48,000 240,000 380,000 Building Investment in S Co. Cost of goods sold Depreciation expense Other expenses. 720,000 540,000 450,000 216,000 192,000 60,000 24,000 72,000 54,000 Dividends paid 72,000 42,000 Totals 2,631,000 1,632,200 Credits Accum. Depreciation-equipment 135,000 152,000 Accum. Depreciation - buildings 450,000 306,000 105,000 238,800 Accounts payable 240,000 120,000 Bonds payable 600,000 240,000 Common stock, P10 par.. 514,500 178,200 Retained earnings 540,000 366,000 Sales Gain on sale of equipment Dividend income Totals 15,000 31,200 31.500 2,631,000 1,632,200 REQUIRED: Using cost model - full goodwill method: 1. Prepare working paper entries for the following: a. December 31, 20x4 b. December 31, 20x5 2. Prepare the consolidated working paper for December 31, 20x4 Trial balances for the companies for the year ended December 31, 20x5 are as follows: Debits Cash Accounts receivable Inventory Land Equipment P Co. SCO. 232,500 136,200 142,500 108,000 216,000 108,000 210,000 48,000 240,000 380,000 Building Investment in S Co. Cost of goods sold Depreciation expense Other expenses. 720,000 540,000 450,000 216,000 192,000 60,000 24,000 72,000 54,000 Dividends paid 72,000 42,000 Totals 2,631,000 1,632,200 Credits Accum. Depreciation-equipment 135,000 152,000 Accum. Depreciation - buildings 450,000 306,000 105,000 238,800 Accounts payable 240,000 120,000 Bonds payable 600,000 240,000 Common stock, P10 par.. 514,500 178,200 Retained earnings 540,000 366,000 Sales Gain on sale of equipment Dividend income Totals 15,000 31,200 31.500 2,631,000 1,632,200 REQUIRED: Using cost model - full goodwill method: 1. Prepare working paper entries for the following: a. December 31, 20x4 b. December 31, 20x5 2. Prepare the consolidated working paper for December 31, 20x4