assuming the beginning of the year (20X3) balance |in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1, 2ox1. |The purchase price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000. |30% of this Inventory Is on hand in the Monroe inventory at December 31, 20X3. In addition, Inventory |sold at a profit of $5,000 was in the inventory of Monroe at December 31, 20X2. Below are the balances of accounts of Monroe and Adams at December 31, 20X3. Consolidation Entries Consolidated Bal. Monroe Adams Dr. Cr. Sales $50,000 $250,000 CGS & Expenses $30,000 $150,000 Income from S. Income $100,000 NCI |Controlling Interest $700,000 $190,000 100.000 Retained Earnings Jan 1, 10 Dividends Retained Earnings Dec 31, 10 $290,000 Cash $120,000 $30,000 Receivables 90,000 70,000 Inventory Equipment (net) 100,000 100,000 100,000 350,000 Patents 50,000 Investment in A Goodwill 100,000 100,000 120.000 100.000 Land Building (net) $800,000 Accounts Payable $126,000 $50,000 Capital Stock Non-Controlling Interest 600,000 460,000 Retained Earnings (12/31) 290.000 $800,000
assuming the beginning of the year (20X3) balance |in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1, 2ox1. |The purchase price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000. |30% of this Inventory Is on hand in the Monroe inventory at December 31, 20X3. In addition, Inventory |sold at a profit of $5,000 was in the inventory of Monroe at December 31, 20X2. Below are the balances of accounts of Monroe and Adams at December 31, 20X3. Consolidation Entries Consolidated Bal. Monroe Adams Dr. Cr. Sales $50,000 $250,000 CGS & Expenses $30,000 $150,000 Income from S. Income $100,000 NCI |Controlling Interest $700,000 $190,000 100.000 Retained Earnings Jan 1, 10 Dividends Retained Earnings Dec 31, 10 $290,000 Cash $120,000 $30,000 Receivables 90,000 70,000 Inventory Equipment (net) 100,000 100,000 100,000 350,000 Patents 50,000 Investment in A Goodwill 100,000 100,000 120.000 100.000 Land Building (net) $800,000 Accounts Payable $126,000 $50,000 Capital Stock Non-Controlling Interest 600,000 460,000 Retained Earnings (12/31) 290.000 $800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:assuming the beginning of the year (20X3) balance
in the Investment in A account is $716,000 complete the consolidated worksheet below.
To ald in this, Information from Problem 4 is repeated below.
Monroe Company purchased 80% of Adams Company on January 1, 20X1.
The purchase price paid was $600,000. On that day, the book value of Adams
was $500,000. Excess of cost over book value is due to goodwill.
Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000.
30% of this inventory is on hand in the Monroe inventory at December 31, 20X3. In addition, inventory
sold at a profit of $5,000 was in the inventory of Monroe at December 31, 20X2.
Below are the balances of accounts of Monroe and Adams at December 31, 20x3.
Consolidation Entries
Consolidated Bal.
Monroe
Adams
Dr.
Cr.
Sales
$50,000 $250,000
CGS & Expenses
$30,000 $150,000
Income from S.
Income
$100,000
NCI
Controlling Interest
Retained Earnings Jan 1, 10
$700,000 $190,000
Dividends
100.000
Retained Earnings Dec 31, 10
$290,000
Cash
$120,000
$30,000
Receivables
90,000
70,000
Inventory
100,000
100,000
Equipment (net)
100,000
350,000
Patents
50,000
Investment in A
Goodwill
Land
Building (net)
100,000
100,000
120.000
100,000
$800,000
Accounts Payable
$126,000
$50,000
Capital Stock
600,000
460,000
Non-Controlling Interest
Retained Earnings (12/31)
290,000
$800,000
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