a Disaggregate and document the activity for the 100 Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontrolling interest AAP Do not use negative signs with any of your answers in part a Unamortized Unamortized Unamortized Unamortized Unamortized Unamortized Unamortized AAP 2008 AAP 2009 AAP 2010 AAP 2011 AAP 2012 AAP 2013 AAP 1 1 2008 Amortization 1 1 2009 Amortization 1 1 2010 Amortization 1 1 2011 Amortization 1 1 2012 Amortization 1 1 2013 Amortization 1 1 2014 Royalty agreement Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Controlling interest Royalty agreement Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Noncontrolling interest Royalty agreement Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer b Calculate and organize the profits and losses on intercompany transactions and balances Use a negative signs with answers that are reductions Downstream Upstream AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1 1 13Net intercompany profit deferred at 12 31 13 Answer Answer Less AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1 1 13Net intercompany profit deferred at 12 31 13 Answer Answer AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1 1 13Net intercompany profit deferred at 12 31 13 Answer Answer c Compute the pre consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary Use negative signs with answers that are deductions Equity investment at 1 1 13 Common stock Answer APIC Answer Retained earnings Answer AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Less AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Answer Equity investment at 12 31 13 Common stock Answer APIC Answer Retained earnings Answer AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Less AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Answer d Reconstruct the activity in the parent's pre consolidation Equity Investment T account for the year of consolidation Equity Investment Balance at 1 1 13 Answer Answer Net income Answer Answer Dividends AnswerNet incomeUpstream equipment profitsDividendsAAP amortization Answer Answer AnswerNet incomeUpstream equipment profitsDividendsAAP amortization Balance at 12 31 13 Answer Answer e Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary Use negative signs with answers that are reductions Noncontrolling interest at 1 1 13 Common stock Answer APIC Answer Retained earnings Answer AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Less AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Answer Noncontrolling interest at 12 31 13 Common stock Answer APIC Answer Retained earnings Answer AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Less AnswerCommon stockAPICRetained earningsUnamortized AAP75 of upstream deferred intercompany profits25 of upstream deferred intercompany profits Answer Answer f Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income Use negative signs with answers that are reductions Consolidated Parent's stand alone net income Answer Subsidiary's stand alone net income Answer Plus Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer Less Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer Subsidiary's adjusted stand alone net income Answer Consolidated net income Answer Parent Parent's stand alone net income Answer 75 Subsidiary's stand alone net income Answer Plus Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer Less Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer 75 of subsidiary's stand alone net income Answer Consolidated net income attributable to the parent Answer Subsidiary 25 of subsidiary's stand alone net income Answer Plus Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer Less Answer100 realized upstream deferred profits75 realized upstream deferred profits25 realized upstream deferred profits100 AAP amortization75 AAP amortization25 AAP amortization Answer Answer g Complete the consolidating entries according to the C E A D I sequence and complete the consolidation worksheet Consolidation Worksheet Description Debit Credit C Equity income Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Dividends Answer Answer Equity investment Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer E Common stock Answer Answer APIC Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Equity investment Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer A AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Equity investment Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer D AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Igain Equity investment Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Idep AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense Answer Answer Consolidation subsequent to date of acquisition Equity method with noncontrolling interest, AAP and gain on upstream intercompany equipment sale A parent company acquired its 75 interest in its subsidiary on January 1, 2008, On the acquisition date the total fair value of the controlling interest and the noncontrolling interest was $560,000 in excess of the book value of the subsidiary's Stockholders' Equity All of that excess was allocated to a Royalty Agreement, which had a zero book value in the subsidiary's financial statements (i e , there is no Goodwill) The Royalty Agreement has a 7 year estimated remaining economic life on the acquisition date Both companies use straight line depreciation and amortization, with no salvage value In January 2011, the subsidiary sold Equipment to the parent for a cash price of $240,000 The subsidiary acquired the equipment at a cost of $480000 and depreciated the equipment over its 10 year useful life using the straight line method (no salvage value) The subsidiary had depreciated the equipment for 6 years at the time of sale The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 4 year useful life Following are financial statements of the parent and its subsidiary for the year ended December 31, 2013 The parent uses the equity method to account for its Equity Investment Parent Subsidia Parent Subsidia Income statement Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet $3,380,000 $876,000 Assets (2,433,600 (525,600 Cash $684,595 $243,272 591,500 376,680 878,800 481,800 3,400,280 902,280 946,400 350,400 Accounts receivable 50,355 507,000 (227,760) PPE, net $489,755 122,640 Inventory Net income Equity investment 460,968 $6,016,143 $2,004,032 Statement of retained earnings BOY retained earnings Net income Dividends EOY retained earnings $1,812,627 197,100 iabilities and stockholders' equity 489,755 122,640 Accounts payable S341,380 155,928 402,220 201,480 1,500,000 1,100,000 86,914108,624 1,381,655 135,780 2,203,974 302,220 $6,016,143 $2,004,032 (98,408) 7,520 Other current liabilities 2,203,974 $302,220 Long term liabilities Common stock APIC Retained earnings Consolidation subsequent to date of acquisition Equity method with noncontrolling interest, AAP and gain on upstream intercompany equipment sale A parent company acquired its 75 interest in its subsidiary on January 1, 2008, On the acquisition date the total fair value of the controlling interest and the noncontrolling interest was $560,000 in excess of the book value of the subsidiary's Stockholders' Equity All of that excess was allocated to a Royalty Agreement, which had a zero book value in the subsidiary's financial statements (i e , there is no Goodwill) The Royalty Agreement has a 7 year estimated remaining economic life on the acquisition date Both companies use straight line depreciation and amortization, with no salvage value In January 2011, the subsidiary sold Equipment to the parent for a cash price of $240,000 The subsidiary acquired the equipment at a cost of $480000 and depreciated the equipment over its 10 year useful life using the straight line method (no salvage value) The subsidiary had depreciated the equipment for 6 years at the time of sale The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 4 year useful life Following are financial statements of the parent and its subsidiary for the year ended December 31, 2013 The parent uses the equity method to account for its Equity Investment Parent Subsidia Parent Subsidia Income statement Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet $3,380,000 $876,000 Assets (2,433,600 (525,600 Cash $684,595 $243,272 591,500 376,680 878,800 481,800 3,400,280 902,280 946,400 350,400 Accounts receivable 50,355 507,000 (227,760) PPE, net $489,755 122,640 Inventory Net income Equity investment 460,968 $6,016,143 $2,004,032 Statement of retained earnings BOY retained earnings Net income Dividends EOY retained earnings $1,812,627 197,100 iabilities and stockholders' equity 489,755 122,640 Accounts payable S341,380 155,928 402,220 201,480 1,500,000 1,100,000 86,914108,624 1,381,655 135,780 2,203,974 302,220 $6,016,143 $2,004,032 (98,408) 7,520 Other current liabilities 2,203,974 $302,220 Long term liabilities Common stock APIC Retained earnings

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Question: a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontrolling interest AAP. Do not use

a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontrolling interest AAP.

Do not use negative signs with any of your answers in part a.

	Unamortized		Unamortized		Unamortized		Unamortized		Unamortized		Unamortized		Unamortized
	AAP	2008	AAP	2009	AAP	2010	AAP	2011	AAP	2012	AAP	2013	AAP
	1/1/2008	Amortization	1/1/2009	Amortization	1/1/2010	Amortization	1/1/2011	Amortization	1/1/2012	Amortization	1/1/2013	Amortization	1/1/2014
Royalty agreement	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer

Controlling interest:
Royalty agreement	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer

Noncontrolling interest:
Royalty agreement	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer	Answer

b. Calculate and organize the profits and losses on intercompany transactions and balances.

Use a negative signs with answers that are reductions.

		Downstream	Upstream
AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1/1/13Net intercompany profit deferred at 12/31/13		Answer	Answer
Less:	AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1/1/13Net intercompany profit deferred at 12/31/13	Answer	Answer
AnswerDeferred intercompany profit recognized during 2013Net intercompany profit deferred at 1/1/13Net intercompany profit deferred at 12/31/13		Answer	Answer

c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary.

Use negative signs with answers that are deductions.

Equity investment at 1/1/13:
Common stock		Answer
APIC		Answer
Retained earnings		Answer
AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits		Answer
Less:	AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits	Answer
		Answer
Equity investment at 12/31/13:
Common stock		Answer
APIC		Answer
Retained earnings		Answer
AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits		Answer
Less:	AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits	Answer
		Answer

d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation.

Equity Investment
Balance at 1/1/13	Answer	Answer
Net income	Answer	Answer	Dividends
AnswerNet incomeUpstream equipment profitsDividendsAAP amortization	Answer	Answer	AnswerNet incomeUpstream equipment profitsDividendsAAP amortization
Balance at 12/31/13	Answer	Answer

e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary.

Use negative signs with answers that are reductions.

Noncontrolling interest at 1/1/13:
Common stock		Answer
APIC		Answer
Retained earnings		Answer
AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits		Answer
Less:	AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits	Answer
		Answer
Noncontrolling interest at 12/31/13:
Common stock		Answer
APIC		Answer
Retained earnings		Answer
AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits		Answer
Less:	AnswerCommon stockAPICRetained earningsUnamortized AAP75% of upstream deferred intercompany profits25% of upstream deferred intercompany profits	Answer
		Answer

f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income.

Use negative signs with answers that are reductions.

Consolidated:
Parent's stand-alone net income		Answer

Subsidiary's stand-alone net income		Answer
Plus:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
Less:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
Subsidiary's adjusted stand-alone net income		Answer
Consolidated net income		Answer

Parent:
Parent's stand-alone net income		Answer

75% Subsidiary's stand-alone net income		Answer
Plus:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
Less:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
75% of subsidiary's stand-alone net income		Answer
Consolidated net income attributable to the parent		Answer

Subsidiary:
25% of subsidiary's stand-alone net income		Answer
Plus:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
Less:	Answer100% realized upstream deferred profits75% realized upstream deferred profits25% realized upstream deferred profits100% AAP amortization75% AAP amortization25% AAP amortization	Answer
		Answer

g. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet.

Consolidation Worksheet
Description		Debit	Credit
[C]	Equity income	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	Dividends	Answer	Answer
	Equity investment	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

[E]	Common stock	Answer	Answer
	APIC	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	Equity investment	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

[A]	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	Equity investment	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

[D]	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

[Igain]	Equity investment	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

[Idep]	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer
	AnswerPPE, netRoyalty agreementEquity incomeConsolidated net income attributable to noncontrolling interestDividendsEquity investmentNoncontrolling interestRetained earningsOperating expensesDepreciation expense	Answer	Answer

Consolidation subsequent to date of acquisition-Equity method with noncontrolling interest, AAP and gain on upstream intercompany equipment sale A parent company acquired its 75% interest in its subsidiary on January 1, 2008, On the acquisition date. the total fair value of the controlling interest and the noncontrolling interest was $560,000 in excess of the book value of the subsidiary's Stockholders' Equity. All of that excess was allocated to a Royalty Agreement, which had a zero book value in the subsidiary's financial statements (i.e., there is no Goodwill). The Royalty Agreement has a 7 year estimated remaining economic life on the acquisition date Both companies use straight line depreciation and amortization, with no salvage value In January 2011, the subsidiary sold Equipment to the parent for a cash price of $240,000. The subsidiary acquired the equipment at a cost of $480000 and depreciated the equipment over its 10-year useful life using the straight-line method (no salvage value). The subsidiary had depreciated the equipment for 6 years at the time of sale. The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 4 year useful life Following are financial statements of the parent and its subsidiary for the year ended December 31, 2013. The parent uses the equity method to account for its Equity Investment. Parent Subsidia Parent Subsidia Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet: $3,380,000 $876,000 Assets (2,433,600 (525,600 Cash $684,595 $243,272 591,500 376,680 878,800 481,800 3,400,280 902,280 946,400 350,400 Accounts receivable 50,355 507,000 (227,760) PPE, net $489,755 122,640 Inventory Net income Equity investment 460,968 $6,016,143 $2,004,032 Statement of retained earnings: BOY retained earnings Net income Dividends EOY retained earnings $1,812,627 197,100 iabilities and stockholders' equity 489,755 122,640 Accounts payable S341,380 155,928 402,220 201,480 1,500,000 1,100,000 86,914108,624 1,381,655 135,780 2,203,974 302,220 $6,016,143 $2,004,032 (98,408) 7,520 Other current liabilities 2,203,974 $302,220 Long-term liabilities Common stock APIC Retained earnings Consolidation subsequent to date of acquisition-Equity method with noncontrolling interest, AAP and gain on upstream intercompany equipment sale A parent company acquired its 75% interest in its subsidiary on January 1, 2008, On the acquisition date. the total fair value of the controlling interest and the noncontrolling interest was $560,000 in excess of the book value of the subsidiary's Stockholders' Equity. All of that excess was allocated to a Royalty Agreement, which had a zero book value in the subsidiary's financial statements (i.e., there is no Goodwill). The Royalty Agreement has a 7 year estimated remaining economic life on the acquisition date Both companies use straight line depreciation and amortization, with no salvage value In January 2011, the subsidiary sold Equipment to the parent for a cash price of $240,000. The subsidiary acquired the equipment at a cost of $480000 and depreciated the equipment over its 10-year useful life using the straight-line method (no salvage value). The subsidiary had depreciated the equipment for 6 years at the time of sale. The parent retained the depreciation policy of the subsidiary and depreciated the equipment over its remaining 4 year useful life Following are financial statements of the parent and its subsidiary for the year ended December 31, 2013. The parent uses the equity method to account for its Equity Investment. Parent Subsidia Parent Subsidia Income statement: Sales Cost of goods sold Gross profit Income (loss) from subsidiary Operating expenses Balance sheet: $3,380,000 $876,000 Assets (2,433,600 (525,600 Cash $684,595 $243,272 591,500 376,680 878,800 481,800 3,400,280 902,280 946,400 350,400 Accounts receivable 50,355 507,000 (227,760) PPE, net $489,755 122,640 Inventory Net income Equity investment 460,968 $6,016,143 $2,004,032 Statement of retained earnings: BOY retained earnings Net income Dividends EOY retained earnings $1,812,627 197,100 iabilities and stockholders' equity 489,755 122,640 Accounts payable S341,380 155,928 402,220 201,480 1,500,000 1,100,000 86,914108,624 1,381,655 135,780 2,203,974 302,220 $6,016,143 $2,004,032 (98,408) 7,520 Other current liabilities 2,203,974 $302,220 Long-term liabilities Common stock APIC Retained earnings

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