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Cash and Accounts Receivable Inventory Buildings and Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total Plug Products Credit $ 162,000 224,000 281,000 278,618 167,000 35,000 $1,147,618 Debit $ 159,982 195,000 463,000 271,818 57,818 $ 1,147,618 Spark Filter Company Credit Debit $ 97,000 126,000 182,000 132,000 25,000 $ 562,000 $ 44,182 80,000 216,000 221,818 $ 562,000 On January 1, 20X8, Plug's inventory contained filters purchased for $75,000 from Spark Filter, which had produced the filters for $55,000. In 20X8. Spark Filter spent $115,000 to produce additional filters, which it sold to Plug for $156,818. By December 31, 20X8. Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47.045 of the 20X8 purchase from Spark Filter.

Cash and Accounts Receivable Inventory Buildings and Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total Plug Products Credit $ 162,000 224,000 281,000 278,618 167,000 35,000 $1,147,618 Debit $ 159,982 195,000 463,000 271,818 57,818 $ 1,147,618 Spark Filter Company Credit Debit $ 97,000 126,000 182,000 132,000 25,000 $ 562,000 $ 44,182 80,000 216,000 221,818 $ 562,000 On January 1, 20X8, Plug's inventory contained filters purchased for $75,000 from Spark Filter, which had produced the filters for $55,000. In 20X8. Spark Filter spent $115,000 to produce additional filters, which it sold to Plug for $156,818. By December 31, 20X8. Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47.045 of the 20X8 purchase from Spark Filter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash and Accounts Receivable Inventory Buildings and Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total ¡ ✓ view transaction list No A B C Entry 1 2 On January 1, 20x8, Plug's inventory contained filters purchased for $75,000 from Spark Filter, which had produced the filters for $55,000. In 20x8. Spark Filter spent $115,000 to produce additional filters, which it sold to Plug for $156,818. By December 31, 20X8. Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,045 of the 20X8 purchase from Spark Filter. 3 Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. transaction list Noncontrolling interest Common stock Retained earnings Plug Products Credit $ 162,000 224,000 281,000 278,618 167,000 35,000 Sales $1,147,618 Cost of goods sold Inventory Income from Spark Filter Company NCI in Net Income of Spark Filter Company NCI in Net assets of Spark Filter Company Investment in Spark Filter Company Consolidated net income Income assigned to the controlling interest Investment in Spark Filter Company NCI in Net assets of Spark Filter Company Cost of goods sold Accounts Debit $ 142,089 $ 127.635 $ 159,982 195,000 463,000 271,818 57,818 $1,147,618 Spark Filter Company Credit Debit $ 97,000 126,000 182,000 132,000 25,000 $ 562,000 Debit 80,000 216,000 57,818 14,454 $44,182 80,000 216,000 221,818 16,000 4,000 $ 562,000 156,818 Credit b. Compute consolidated net income and income assigned to the controlling interest in the 20x8 consolidated income statement. c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8. 294,617 73.654 20,000 144,271 12,547 X The answers highlighted in yellow are incorrect. A Record the basic consolidation entry. B Record the entry to reverse last year's deferral. Record the entry to defer the current year's unrealized profits on inventory transfers. Note: = journal entry has been entered X
Transcribed Image Text:Cash and Accounts Receivable Inventory Buildings and Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total ¡ ✓ view transaction list No A B C Entry 1 2 On January 1, 20x8, Plug's inventory contained filters purchased for $75,000 from Spark Filter, which had produced the filters for $55,000. In 20x8. Spark Filter spent $115,000 to produce additional filters, which it sold to Plug for $156,818. By December 31, 20X8. Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,045 of the 20X8 purchase from Spark Filter. 3 Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. transaction list Noncontrolling interest Common stock Retained earnings Plug Products Credit $ 162,000 224,000 281,000 278,618 167,000 35,000 Sales $1,147,618 Cost of goods sold Inventory Income from Spark Filter Company NCI in Net Income of Spark Filter Company NCI in Net assets of Spark Filter Company Investment in Spark Filter Company Consolidated net income Income assigned to the controlling interest Investment in Spark Filter Company NCI in Net assets of Spark Filter Company Cost of goods sold Accounts Debit $ 142,089 $ 127.635 $ 159,982 195,000 463,000 271,818 57,818 $1,147,618 Spark Filter Company Credit Debit $ 97,000 126,000 182,000 132,000 25,000 $ 562,000 Debit 80,000 216,000 57,818 14,454 $44,182 80,000 216,000 221,818 16,000 4,000 $ 562,000 156,818 Credit b. Compute consolidated net income and income assigned to the controlling interest in the 20x8 consolidated income statement. c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8. 294,617 73.654 20,000 144,271 12,547 X The answers highlighted in yellow are incorrect. A Record the basic consolidation entry. B Record the entry to reverse last year's deferral. Record the entry to defer the current year's unrealized profits on inventory transfers. Note: = journal entry has been entered X
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