Revenues Big Corp. ($894,600) Little Inc. ($652,400) Cost of goods sold Expenses 483,000 277,200 187,600 225,400...

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Revenues Big Corp. ($894,600) Little Inc. ($652,400) Cost of goods sold Expenses 483,000 277,200 187,600 225,400 Interest expense-bonds 37,800 4,200 Interest income-bond investment Equity in income of Little Inc. Net income (3,600) (88,032) (15,400) 0 ($277,832) ($161,000) Retained earnings, January 1, 2023 ($483,000) ($505,400) Net income (277,832) (161,000) Dividends paid 217,000 85,400 Retained earnings, December 31, 2023 ($543,832) ($581,000) Cash and receivables $186,200 $199,200 Inventory 239,400 121,800 Investment in Little Inc. 487,072 0 Investment in little Inc. bonds 42,400 0 Land 30,000 60,000 Buildings and equipment (net) 318,600 697,400 Total assets $1,303,672 $1,078,400 Accounts payable ($319,200) ($232,400) Bonds payable (80,000) (100,000) Discount on bonds payable 11,360 3,000 Common stock (372,000) (168,000) Retained earnings, December 31, 2023 Total liabilities and stockholders' equity (543,832) ($1,303,672) (581,000) ($1,078,400) Required: 1. Prepare a consolidation worksheet in good form for the year ending December 31, 2023 (on Excel). 2. Prepare the consolidation journal entries. Revenues Big Corp. ($894,600) Little Inc. ($652,400) Cost of goods sold Expenses 483,000 277,200 187,600 225,400 Interest expense-bonds 37,800 4,200 Interest income-bond investment Equity in income of Little Inc. Net income (3,600) (88,032) (15,400) 0 ($277,832) ($161,000) Retained earnings, January 1, 2023 ($483,000) ($505,400) Net income (277,832) (161,000) Dividends paid 217,000 85,400 Retained earnings, December 31, 2023 ($543,832) ($581,000) Cash and receivables $186,200 $199,200 Inventory 239,400 121,800 Investment in Little Inc. 487,072 0 Investment in little Inc. bonds 42,400 0 Land 30,000 60,000 Buildings and equipment (net) 318,600 697,400 Total assets $1,303,672 $1,078,400 Accounts payable ($319,200) ($232,400) Bonds payable (80,000) (100,000) Discount on bonds payable 11,360 3,000 Common stock (372,000) (168,000) Retained earnings, December 31, 2023 Total liabilities and stockholders' equity (543,832) ($1,303,672) (581,000) ($1,078,400) Required: 1. Prepare a consolidation worksheet in good form for the year ending December 31, 2023 (on Excel). 2. Prepare the consolidation journal entries.

Answer rating: 100% (QA)

Consolidation Worksheet and Journal Entries for Big Corp and Little Inc Note Due to the limitations of textbased responses we cannot directly create a... View the full answer