Police Corp. Station Corp. Consolidation Entries DR CR Consolidated Income Statement Sales 200,000 Less: Depreciation Expense (25,000) Less: Other Expenses (105,000) Income from Station Corp. 30,000 Net Income 100,000 Statement of Retained Earnings Beginning Balance 230,000 Net Income 100,000 Less: Dividends Declared (40,000) Ending Balance 290,000 Balance Sheet Current Assets 145,000 105,000 Depreciable Assets 400,000 270,000 Less: Acc. Depr. (75,000) (45,000) Investment in Station Corp. 170,000 Total Assets 640,000 330,000 Current Liabilities 50,000 40,000 Long-Term Debt 100,000 120,000 Common Stock 200,000 100,000 Retained Earnings 290,000 70,000 Total Liabilities & Equity 640,000 330,000

Record the three equity method entries required on the books of Police for the year ended 12/31/x3.

b. Record the three consolidation/elimination entries required on 12/31/x3.

c. Prepare a three-part consolidation worksheet as of 12/31/x3.

Answer rating: 100% (QA)

a Equity Method Entries on Polices Books 1 To record the share of income from Station Corp DR Invest... View the full answer