a. Prepare a consolidated income statement for the year ending December 31, 2021.b. Determine the consolidated balance for each of the following accounts as of December 31, 2021:GoodwillEquipment (net)Common stockBuildings (net)Dividends declaredComplete this question by entering your answers in the tabs below.Required ARequired BDetermine the consolidated balance for each of the following accounts as of December 31, 2021:GoodwillEquipment (net)Common stockBuildings (net) Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:Gibson(741,000) $333,000175,000(12,000)SalesCost of goods soldOperating expensesDividend IncomeNet incomeRetained earnings, 1/1/21Net incomeDividends declaredRetained earnings, 12/31/21Cash and receivablesInventoryInvestment in DavisBuildings (net)Equipment (net)Total assetsLiabilitiesCommon stockRetained earnings, 12/31/21Total liabilities and stockholdersS$$S$$$(245,000) S(799,000) $(245,000)50,000(994,000) $392,050 $543,000556,950549,000412,0002,453,000(829,000) $(630,000)(954,000)$ (2,453,000)Davis(447,000)196,00062,000(199,000)(427,000)(189,000)20,000(596,000)198,000211,000e629,000451,000$ 1,489,000(553,000)(340,000)(596,000)$ (1,485,000)Gibson acquired 60 percent of Davis on April 1, 2021, for $556.950. On that date, equipment owned by Davibwith a five-yearremaining life) was overvalued by $42.000. Also on that date, the fair value of the 40 percent noncontrolling interest was $371.300.Davis earned income evenly during the year but declared the $20.000 dividend on November 1, 2021

Name: a. Prepare a consolidated income statement for the year ending Decemb
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Description: a. Prepare a consolidated income statement for the year ending December 31, 2021.b. Determine the consolidated balance for each of the following accounts as of December 31, 2021:GoodwillEquipment (net)Common stockBuildings (net)Dividends declaredCom

a. Consolidated Income Statement For the Year Ending December 31, 2021: Consolidated revenue =…

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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Davis (741,000) 333,000 175,000 (447,000) 196,000 62,000 D (12,000) (245,000) Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/11/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/11/21 Total liabilities and stockholders' epilty S $ $ $ S $ $ $ S (799,000) (245,000) 50,000 (994,000) S 392,050 $ 543,000 556,950 549,000 412,000 (109,000) (427,000) (189,000) 20,000 (596,000) (829,000) S (630,000) (994,000) $ (2,453,000) 198,000 211,000 @ 629,000 451,000 2,453,000 $ 1,489,000 (553,000) (340,000) (590,000) $ (1,489,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $556.950. On that date, equipment owned by Daviwith a five-year remaining life) was overvalued by $42.000. Also on that date, the fair value of the 40 percent noncontrolling interest was $371,300 Davis earned income evenly during the year but declared the $20.000 dividend on November 1, 2021

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Davis (741,000) 333,000 175,000 (447,000) 196,000 62,000 D (12,000) (245,000) Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/11/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/11/21 Total liabilities and stockholders' epilty S $ $ $ S $ $ $ S (799,000) (245,000) 50,000 (994,000) S 392,050 $ 543,000 556,950 549,000 412,000 (109,000) (427,000) (189,000) 20,000 (596,000) (829,000) S (630,000) (994,000) $ (2,453,000) 198,000 211,000 @ 629,000 451,000 2,453,000 $ 1,489,000 (553,000) (340,000) (590,000) $ (1,489,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $556.950. On that date, equipment owned by Daviwith a five-year remaining life) was overvalued by $42.000. Also on that date, the fair value of the 40 percent noncontrolling interest was $371,300 Davis earned income evenly during the year but declared the $20.000 dividend on November 1, 2021

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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