Question

The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent—owned subsidiary Hingle Company contained the following summarized amounts:


Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume Doorst sold inventory to Hingle during 20X8 for $100,000 and Hingle sold inventory to Doorst for $300,000. Doorst’s balance sheet contains inventory items purchased from Hingle for $95,000. The items cost Hingle $55,000 to produce. In addition, Hingle’s inventory contains goods it purchased from Doorst for $25,000 that Doorst had produced for $15,000. Assume Hingle reported net income of $70,000 and dividends of $14,000.

Required
a. Prepare all elimination entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8.
b. Prepare a consolidated balance sheet worksheet as of December 31,20X8.


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  • CreatedMay 23, 2014
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