2021 Sales 100,000 80,000 Dep. Exp 15,000 10,000 Other Expenses 60,000 50,000 Gain/loss on sale of asset 3,000 Investment income 12,300 Net income 37,300 23,000 Income to NC Interest Income to contolling interest Beg R/E 200,000 100,000 Add: Income 37,300 23,000 Less: Dividends 30,000 20,000 Ending R/E 207,300 103,000 Current assets 50,000 25,000 Investment in Little 78,300 PPE 200,000 150,000 Acc Dep 45,000 40,000 Liabilities 56,000 2,000 CS 20,000 30,000 RE 207,300 103,000 NC Interest 2022 Sales 110,000 85,000 Dep. Exp 15,000 10,000 Other Expenses 65,000 55,000 Gain/loss on sale of asset Investment income 12,300 Net income 42,300 20,000 Income to NC Interest Income to contolling interest Beg R/E 207,300 103,000 Add: Income 42,300 20,000 Less: Dividends 20,000 10,000 229,600 113,000 Ending R/E Current assets 50,000 55,000 Investment in Little 84,600 PPE 200,000 150,000 Acc Dep 60,000 50,000 Liabilities 25,000 12,000 CS 20,000 30,000 RE 229,600 113,000 NC Interest
2021 Sales 100,000 80,000 Dep. Exp 15,000 10,000 Other Expenses 60,000 50,000 Gain/loss on sale of asset 3,000 Investment income 12,300 Net income 37,300 23,000 Income to NC Interest Income to contolling interest Beg R/E 200,000 100,000 Add: Income 37,300 23,000 Less: Dividends 30,000 20,000 Ending R/E 207,300 103,000 Current assets 50,000 25,000 Investment in Little 78,300 PPE 200,000 150,000 Acc Dep 45,000 40,000 Liabilities 56,000 2,000 CS 20,000 30,000 RE 207,300 103,000 NC Interest 2022 Sales 110,000 85,000 Dep. Exp 15,000 10,000 Other Expenses 65,000 55,000 Gain/loss on sale of asset Investment income 12,300 Net income 42,300 20,000 Income to NC Interest Income to contolling interest Beg R/E 207,300 103,000 Add: Income 42,300 20,000 Less: Dividends 20,000 10,000 229,600 113,000 Ending R/E Current assets 50,000 55,000 Investment in Little 84,600 PPE 200,000 150,000 Acc Dep 60,000 50,000 Liabilities 25,000 12,000 CS 20,000 30,000 RE 229,600 113,000 NC Interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
7.3
| Big Co. owns 60% of Little Co, and uses the full equity method to account for their investment. | ||||
| Assume Little had zero |
||||
| It is now 2021. On 1/1/21 Little sells PPE to Big for $28,000. The PPE originally cost $50,000, and was originally purchased on 1/1/15. | ||||
| It was expected to have a 12 year useful life. | ||||
| Required: Prepare elimination entries and complete the following worksheets | ||||
| PLEASE NOTE THAT THE FIRMS ARE USING A SEPARATE ACCUMULATED DEPRECIATION ACCOUNT!!!!!!!!!!! | ||||
| That will affect how the realization of the gain is recorded, and how the unrealized portion is carried forward to the following years!!! | ||||
| Please note also that the number 13,200 shows up a few times; that's just a coincidence. |
Fill in the highlighted areas.
Transcribed Image Text:2021
Sales
100,000
80,000
Dep. Exp
15,000
10,000
Other Expenses
60,000
50,000
Gain/loss on sale of asset
3,000
Investment income
12,300
Net income
37,300
23,000
Income to NC Interest
Income to contolling interest
Beg R/E
200,000
100,000
Add: Income
37,300
23,000
Less: Dividends
30,000
20,000
Ending R/E
207,300
103,000
Current assets
50,000
25,000
Investment in Little
78,300
PPE
200,000
150,000
Acc Dep
45,000
40,000
Liabilities
56,000
2,000
CS
20,000
30,000
RE
207,300
103,000
NC Interest
Transcribed Image Text:2022
Sales
110,000
85,000
Dep. Exp
15,000
10,000
Other Expenses
65,000
55,000
Gain/loss on sale of asset
Investment income
12,300
Net income
42,300
20,000
Income to NC Interest
Income to contolling interest
Beg R/E
207,300
103,000
Add: Income
42,300
20,000
Less: Dividends
20,000
10,000
229,600
113,000
Ending R/E
Current assets
50,000
55,000
Investment in Little
84,600
PPE
200,000
150,000
Acc Dep
60,000
50,000
Liabilities
25,000
12,000
CS
20,000
30,000
RE
229,600
113,000
NC Interest
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 10 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education