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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
2

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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Step 1: Define 'Consolidation':
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VIEWStep 3: (b) Determine the consolidated net income and income assigned to the controlling interest:
VIEWStep 4: (c) Compute he balance assigned to non-controlling interest in the consolidated balance sheet:
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