PROBLEM 4-10 Consolidated Workpaper, Equity Method LO 5 Poco Company purchased 80% of Solo Company's common...

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PROBLEM 4-10 Consolidated Workpaper, Equity Method LO 5 Poco Company purchased 80% of Solo Company's common stock on January 1, 2017, for $250,000. On December 31, 2017, the companies prepared the following trial balances: Cash Inventory Poco Solo $ 161,500 $125,000 Investment in Solo Company Land 210,000 195,000 402,000 75,000 150,000 -0- Required: Cost of Goods Sold Other Expense Dividends Declared Total Debits Accounts Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Equity in Subsidiary Income Total Credits 410,000 125,000 100,000 80,000 30,000 15,000 $1,388,500 $690,000 $ 154,500 $ 35,000 200,000 150,000 60,000 35,000 50,000 60,000 760,000 410,000 164,000 -0- $1,388,500 $690,000 Prepare a consolidated statements workpaper on December 31, 2017. Any difference between book value and the value implied by the purchase price relates to goodwill. PROBLEM 4-10 Consolidated Workpaper, Equity Method LO 5 Poco Company purchased 80% of Solo Company's common stock on January 1, 2017, for $250,000. On December 31, 2017, the companies prepared the following trial balances: Cash Inventory Poco Solo $ 161,500 $125,000 Investment in Solo Company Land 210,000 195,000 402,000 75,000 150,000 -0- Required: Cost of Goods Sold Other Expense Dividends Declared Total Debits Accounts Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Equity in Subsidiary Income Total Credits 410,000 125,000 100,000 80,000 30,000 15,000 $1,388,500 $690,000 $ 154,500 $ 35,000 200,000 150,000 60,000 35,000 50,000 60,000 760,000 410,000 164,000 -0- $1,388,500 $690,000 Prepare a consolidated statements workpaper on December 31, 2017. Any difference between book value and the value implied by the purchase price relates to goodwill.

Answer rating: 100% (QA)

To prepare the consolidated workpaper on December 31 2017 we need to follow these steps 1 Eliminate the investment account and record the equity in su... View the full answer