Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2024: Account Gibson $ (742,000) 327,808 247,808 (12,000) $ (180,000) Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Cormon stock Retained earnings, 12/31/24 Total liabilities and stockholders' equity Goodwill Equipment (net) Common stock Buildings (net) Dividends declared $ (798,000) (180,000) 78,808 $ (988,000) $ 211,958 545,000 622,858 617,808 482,000 2,398,808 $ $ (860,000) (630,000) (988,000) $ (2,398,000) Complete this question by entering your answers in the tabs below. Consolidated Income Statement For the Year Ending December 31, 2024 Required A Required B Prepare a consolidated income statement for the year ending December 31, 2024. Note: Enter all amounts as positive values. < Required A Gibson acquired 60 percent of Davis on April 1, 2024, for $622,050. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $54,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $414,700. Davis earned income evenly during the year but declared the $20,000 dividend on November 1, 2024. Davis $ (499,008) 236,000 64,000 8 Required: a. Prepare a consolidated income statement for the year ending December 31, 2024. b. Determine the consolidated balance for each of the following accounts as of December 31, 2024: $ (199,808) $ (481,808) (199,000) 20,000 $ (668,808) Required B > $ 85,000 276,080 8 679,080 486,080 $ 1,526,000 $ (526,808) (348,000) (668,808) $ (1,526,000)
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2024: Account Gibson $ (742,000) 327,808 247,808 (12,000) $ (180,000) Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Cormon stock Retained earnings, 12/31/24 Total liabilities and stockholders' equity Goodwill Equipment (net) Common stock Buildings (net) Dividends declared $ (798,000) (180,000) 78,808 $ (988,000) $ 211,958 545,000 622,858 617,808 482,000 2,398,808 $ $ (860,000) (630,000) (988,000) $ (2,398,000) Complete this question by entering your answers in the tabs below. Consolidated Income Statement For the Year Ending December 31, 2024 Required A Required B Prepare a consolidated income statement for the year ending December 31, 2024. Note: Enter all amounts as positive values. < Required A Gibson acquired 60 percent of Davis on April 1, 2024, for $622,050. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $54,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $414,700. Davis earned income evenly during the year but declared the $20,000 dividend on November 1, 2024. Davis $ (499,008) 236,000 64,000 8 Required: a. Prepare a consolidated income statement for the year ending December 31, 2024. b. Determine the consolidated balance for each of the following accounts as of December 31, 2024: $ (199,808) $ (481,808) (199,000) 20,000 $ (668,808) Required B > $ 85,000 276,080 8 679,080 486,080 $ 1,526,000 $ (526,808) (348,000) (668,808) $ (1,526,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2024:
Account
Gibson
$ (742,000)
327,808
247,808
(12,000)
$ (180,000)
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/24
Net income
Dividends declared
Retained earnings, 12/31/24
Cash and receivables
Inventory
Investment in Davis
Buildings (net)
Equipment (net)
Total assets
Liabilities
Cormon stock
Retained earnings, 12/31/24
Total liabilities and stockholders' equity
Goodwill
Equipment (net)
Common stock
Buildings (net)
Dividends declared
$ (798,000)
(180,000)
78,808
$ (988,000)
$ 211,958
545,000
622,858
617,808
482,000
2,398,808
$
$ (860,000)
(630,000)
(988,000)
$ (2,398,000)
Complete this question by entering your answers in the tabs below.
Consolidated Income Statement
For the Year Ending December 31, 2024
Required A Required B
Prepare a consolidated income statement for the year ending December 31, 2024.
Note: Enter all amounts as positive values.
< Required A
Gibson acquired 60 percent of Davis on April 1, 2024, for $622,050. On that date, equipment owned by Davis (with a five-year
remaining life) was overvalued by $54,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $414,700.
Davis earned income evenly during the year but declared the $20,000 dividend on November 1, 2024.
Davis
$ (499,008)
236,000
64,000
8
Required:
a. Prepare a consolidated income statement for the year ending December 31, 2024.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2024:
$ (199,808)
$ (481,808)
(199,000)
20,000
$ (668,808)
Required B >
$ 85,000
276,080
8
679,080
486,080
$ 1,526,000
$ (526,808)
(348,000)
(668,808)
$ (1,526,000)
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