Question 5 - ASSIGNMENT#5 X Calculation process and sumr x + G go ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... ASSIGNMENT#5 i Saved Help Save & Exit Submit Check my work 5 The following financial statements were prepared on December 31, Year 6. BALANCE SHEET 25 Pearl Silver points Cash 560, 000 $ 360, 000 Accounts receivable 460, 000 Inventory 3, 300, 000 680, 000 Plant and equipment 4, 300, 000 5, 290, 000 Accumulated depreciation 1, 010, 000) (570, 000) Investment in Silver Company (at cost) 5, 000, 000 Book $12, 610, 000 $5, 760, 000 Liabilities 448, 000 $1, 002, 000 Common shares 5, 450, 000 2, 900, 000 Print Retained earnings 6, 712, 000 1, 858, 000 $12, 610, 000 $5, 760, 000 References INCOME STATEMENT Sales $ 5,300, 00 $ 2, 300, 000 Dividend income 368, 000 5, 668, 000 2, 300, 000 Cost of sales 2, 760, 000 660, 000 Miscellaneous expenses 450, 000 96, 006 Administrative expense 106, 000 36, 000 Income tax expense 380, 000 250, 000 (3, 696, 000) (1, 042, 000) Net income $ 1, 972, 000 $ 1, 258, 000 RETAINED EARNINGS STATEMENT Balance, January 1 $5, 500, 000 $1, 060, 000 Net income 1, 972, 006 1, 258, 000 7, 472, 000 2, 318, 000 Dividends (760, 000) (460, 000) Balance, December 31 $6, 712, 000 $1, 858, 000 Additional Information Pearl purchased 80% of the outstanding voting shares of Silver for $5,000,000 on July 1, Year 2, at which time Silver's retained earnings were $530,000, and accumulated depreciation was $86,000. The acquisition differential on this date was allocated as follows: 20% to undervalued inventory 40% to equipment-remaining useful life 8 years Balance to goodwill During Year 3, a goodwill impairment loss of $96,000 was recognized, and an impairment test conducted as at December 31, Year 6, indicated that a further loss of $46,000 had occurred Amortization expense is arouned with cost of aoods sold and impairment losses are arouned with administrative expenses. Mc Question 5 - ASSIGNMENT#5 X Calculation process and sumr x + G go ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... ASSIGNMENT#5 i Saved Help Save & Exit Submit Check my work 5 During Year 3, a goodwill impairment loss of $96,000 was recognized, and an impairment test conducted as at December 31, Year 6, indicated that a further loss of $46,000 had occurred 25 Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses. points Silver owes Pearl $101,000 on December 31, Year 6. Required: (a) Prepare consolidated financial statements on December 31, Year 6. (Input all amounts as positive values except accumulated Book depreciation which should be indicated by minus sign. Omit $ sign in your response.) Print Pearl Company Consolidated Income Statement For the Year Ended December 31, Year Sales $ 7,600,000 References Cost of sales Miscellaneous expense Administrative expense Income tax Attributable to: Pearl's shareholders Non-controlling interest Pearl Company Consolidated Retained Earnings Statement For the Year Ended December 31, Year 6 Balance Jan. 1 VI $ Net income Less: Dividends Balance Dec.31 Pearl Company Consolidated Balance Sheet December 31, Year 6 Grav Question 5 - ASSIGNMENT#5 X Consolidated Financial Calcul x + G go ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... ASSIGNMENT#5 i Saved Help Save & Exit Submit Check my work 5 Pearl Company Consolidated Balance Sheet December 31, Year 6 Assets 25 Cash points Accounts receivable Inventory Plant and equipment Book Accumulated depreciation Goodwill Print Liabilities and Equity Liabilities References Common shares Retained earnings Non-controlling interests $ (b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6, under the identifiable net assets method. (Omit $ sign in your response.) Goodwill impairment loss NCI - identifiable net assets method (c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6, under the identifiable net assets method. (Omit $ sign in your response.) Goodwill - identifiable net assets method NCI - identifiable net assets method (d) Prepare the consolidated financial statements using the worksheet approach. (Input all amounts as positive values except accumulated depreciation which should be indicated by minus sign. All values in the "Entry" 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. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your Grav e@ @ @ Question 5 - ASSIGNMENT#: xX Consolidated Financial Calcu) x oP 5% ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com... ASSIGNMENT#S @ Saved 67% f ) NCI - identifiable net assets method fF (d) Prepare the consolidated financial statements using the worksheet approach. (Input all amounts as positive values except 25 accumulated depreciation which should be indicated by minus sign. Alll values in the "Entry" columns should be entered as points 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. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your a response.) eBook Consolidated Financial Statement Working Paper Pearl Company = Consolidated Financial Statements December 31, year 6 Print Entries Pearl Silver Dr. che Consolidated a Income Statements ~ Year 6 oretantee Sales $ $ $ $ $ Dividend income CI Cost of sales Miscellaneous expenses Administrative expense Income tax expense | LL Total expenses Net income $ $ $ Attributable to: Pearl's Shareholders $ Non-controlling interest $ $ $ Retained Earnings Statements - Year 6 Balance, January 1 $ $ $ $ Net income Dividends Balance, December 31 $ $ $ $ $ Statement of Financial Position - December 31, Year 6 EE cash $ $ $ $ $ 'Accounts receivable Inventory Plant and equipment Accumulated depreciation Investment in Silver Company Acquisition differential Goodwitt $ Liabilities $ $ Common shares Retained earnings Non-controlling interest $ $ $ $ $ + & 2 * @ smamTER : Be elp Save&Exit Submit