Plug Products owns 8 0 percent of the stock of Spark Filter Company, which it acquired at
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Question:
Plug Products owns percent of the stock of Spark Filter Company, which it acquired at underlying book value on August X At that date, the fair value of the noncontrolling interest was equal to percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December X are as follows:
Plug Products Spark Filter Company
Credit Debit Credit Debit
Cash and Accounts Receivable $ $
Inventory
Buildings and Equipment net
Investment in Spark Filter Company
Cost of Goods Sold
Depreciation Expense
Current Liabilities $ $
Common Stock
Retained Earnings
Sales
Income from Spark Filter Company
Total $ $ $ $
On January X Plug's inventory contained filters purchased for $ from Spark Filter, which had produced the filters for $ In X Spark Filter spent $ to produce additional filters, which it sold to Plug for $ By December X Plug had sold all filters that had been on hand January X but continued to hold in inventory $ of the X purchase from Spark Filter.
Required:
Prepare all consolidation entries needed to complete a consolidation worksheet for X
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Compute consolidated net income and income assigned to the controlling interest in the X consolidated income statement.
Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December X
Related Book For
Advanced Financial Accounting
ISBN: 9781265042615
13th International Edition
Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd
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