Advanced financial accounting 2020-2021 Total assets Accounts payable Note payable to Sun Dividends payable 8649.728 2329.6...

Transcribed Image Text:

Advanced financial accounting 2020-2021 Total assets Accounts payable Note payable to Sun Dividends payable 8649.728 2329.6 884 115.2 52 Capital stock, $10 par Retained earnings 2513.728 Total equities 5200 72 1560 582.4 8649.728 2329.6 Advanced financial accounting 2020-2021 Sales Income from Sun Cost of goods sold Other expenses Begg Retained earnings Dividends Ret earnings 31/12 Cash Div receiv from Sun Inventories Note receiv from Pop Pam 4160 203.008 (2600) (520) (776) (208) 80% Sun Adjustments and Eliminations Income Statement 2350.88 57.6 Retained Earnings Statement 2046.72 436.8 (520) (166.4) 988 1040 Balance Sheet Statement 757.6 Buildings-net 3120 Investment in Sun 2133.248 Debits 104 52 1416 Credits Consolidate d Statements Advanced financial accounting 2020-2021 Case study 2 Pop Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pop and Sun Corporations for the year 2017 are in next page (in thousands): REQUIRED: 1. Prepare worksheet entries. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Sun owned unrecorded patents having a fair value of 582,400 with a useful life of 10 years. 2. Complete the consolidation income statement for Pop and Sun at 31 of December 2017. 3. Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017. 4.Complete the consolidation balance sheet for Pop and Sun at 31 of December 2017. Advanced financial accounting 2020-2021 Total assets Accounts payable Note payable to Sun Dividends payable 8649.728 2329.6 884 115.2 52 Capital stock, $10 par Retained earnings 2513.728 Total equities 5200 72 1560 582.4 8649.728 2329.6 Advanced financial accounting 2020-2021 Sales Income from Sun Cost of goods sold Other expenses Begg Retained earnings Dividends Ret earnings 31/12 Cash Div receiv from Sun Inventories Note receiv from Pop Pam 4160 203.008 (2600) (520) (776) (208) 80% Sun Adjustments and Eliminations Income Statement 2350.88 57.6 Retained Earnings Statement 2046.72 436.8 (520) (166.4) 988 1040 Balance Sheet Statement 757.6 Buildings-net 3120 Investment in Sun 2133.248 Debits 104 52 1416 Credits Consolidate d Statements Advanced financial accounting 2020-2021 Case study 2 Pop Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pop and Sun Corporations for the year 2017 are in next page (in thousands): REQUIRED: 1. Prepare worksheet entries. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Sun owned unrecorded patents having a fair value of 582,400 with a useful life of 10 years. 2. Complete the consolidation income statement for Pop and Sun at 31 of December 2017. 3. Complete the consolidation retained earnings for Pop and Sun at 31 of December 2017. 4.Complete the consolidation balance sheet for Pop and Sun at 31 of December 2017.

Answer rating: 100% (QA)

Particulars Pop 80 Sun Step 1 Add Step 2 Adjustments and Eliminations Step 3 Consolidation Income St... View the full answer