Pet Corporation acquired an 80 percent interest in She Corporation on January 1, 2011, for $640,000, at
Question:
Separate and consolidated financial statements for Pet and its subsidiary, She Corporation, for the year ended December 31, 2013, are as follows:
She sells merchandise to Pet but never purchases from Pet. On January 1, 2013, She purchased $200,000 par of 10 percent Pet Corporation bonds for $212,000. These bonds mature on December 31, 2015, and She expects to hold the bonds until maturity. Both She and Pet use straight-line amortization. Interest is payable on December 31.
REQUIRED
Show computations for each of the following items:
1. The $6,000 loss in the consolidated income statement
2. The $460,000 consolidated sales
3. Consolidated cost of goods sold of $220,000
4. Intercompany profit in beginning inventories
5. Intercompany profit in ending inventories
6. Consolidated accounts receivable of $330,000
7. Noncontrolling interest share of $16,000
8. Noncontrolling interest at December 31, 2013
9. Investment in She stock at December 31, 2012
10. Investment income account of $40,000 (Pet's books)
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Step by Step Answer:
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith