b. Prepare a three-part worksheet for 20X6. Note: Values In the first two columns (the parent...

Transcribed Image Text:

b. Prepare a three-part worksheet for 20X6. Note: Values In the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be Indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Income Statement Sales Gain on Sale of Equipment Less: COGS Less: Depreciation and Amortization Expense Less: Other Expenses Less: Goodwill Impairment Loss Income from Suspect Company Consolidated Net Income NCI in Net Income Controlling Interest in NI Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Suspect Company Goodwill Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings NCI in NA of Suspect Company Total Liabilities and Equity PRIME COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X6 Consolidation Entries Prime Company Suspect Company Consolidated Debit Credit b. Prepare a three-part worksheet for 20X6. Note: Values In the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be Indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Income Statement Sales Gain on Sale of Equipment Less: COGS Less: Depreciation and Amortization Expense Less: Other Expenses Less: Goodwill Impairment Loss Income from Suspect Company Consolidated Net Income NCI in Net Income Controlling Interest in NI Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Cash and Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Suspect Company Goodwill Total Assets Accounts Payable Bonds Payable Common Stock Retained Earnings NCI in NA of Suspect Company Total Liabilities and Equity PRIME COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X6 Consolidation Entries Prime Company Suspect Company Consolidated Debit Credit