Worksheet 4-2 Intercompany Goods in Ending Inventory Company P and Subsidiary Company S Wlorksheet far Consolidated Financial Statements For Year F.nded Decenn ber 3 1 , 2015 Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 balance amounts are in parertheses.) Accounts Receivable , Inventory, December 31, 2015 Investment in Company S Other Assets Accounts Payable ! Common Stock ($10 P t Retained Earnings, January 1 , 2015Company P Common Stock (SI O par)Company S 'h Retained Earnings, January 1 , 201 S Sales Cost of Goods Sold I Expenses Subsidiary Income Consolidated Net Income To NCI (see distribution schedule) Balance to Controlling Interest (see distribution schedule)' Total NCI Retained Earnings, Controlling Interest, December 31 2015 Company p 110,ooo 70,000 196,000 314,000 (80,000) (200.000) (250.000) (700,000) 510,000 90.000 (60,000) Company S 150,000 40,000 155,000 (100.000) (100,000) (70,000) (500.000) 350,000 75,000 Eliminations and Adiustments: (CYI) IIAI Eliminate the entry recording the parent's share subsidiary net income. Eliminate of the Subsidiary equity balances against the investment in Company S account. There is no excess Of cost or book value in this example- Eliminate the intercompany sale of $ 100,000. Eliminate intercompany profit in ending inventory, 200.4 $.40 000, Eliminate the intercompany trade balances. PICCOLLAGE