General Appliance Appliances Outlets Cash 404,486 72,625 105,000 Accounts Receivable (net) Interest Receivable... Inventory ..... Investment in Appliance Outlets Investment in 11% Bonds.... Investment in Mortgage. . Property, Plant, and Equipment . Accumulated Depreciation Accounts Payable .... Interest Payable .... Bonds Payable (11%) .. Discount on Bonds Payable . Mortgage Payable. .. Common Stock ($5 par) Common Stock ($10 par) Paidin Capital in Excess of Par .. Retained Earnings, January 1, 2016. Sales ..... 752,500 9,625 1,950,000 1,700,000 254,000 900,000 175,000 9,000,000 (1,695,000) (670,000) (18,333) (2,000,000) 10,470 2,950,000 (940,000) (80,000) (9,625) (500,000) 12,000 (175,000) (3,200,000) (800,000) (625,000) (770,000) (3,000,000) (4,550,000) (1,011,123) (9,800,000) (27,500) (36,125) (48,000) 4,940,000 717,000 Gain on Sale of Building. Interest Income.... Dividend Income . Cost of Goods Sold . 1,700,000 95,950 67,544 Depreciation Expense Interest Expense... Other Expenses Dividends Declared.. Totals ... 223,000 2,600,000 936,506 320,000 60,000
On January 1, 2013, Appliance Outlets had the following balances in its
attributed to goodwill.
Appliance Outlets issued $500,000 of 8-year, 11% bonds on December 31, 2012. The bonds sold for $476,000. General Appliances purchased one-half of these bonds in the market on January 1, 2015, for $256,000. Both companies use the straight-line method of amortization of premiums and discounts.
On July 1, 2016, General Appliances sold to Appliance Outlets an old building with a book value of $167,500, remaining life of 10 years, and $30,000 salvage value, for $195,000. The building is being
The
Prepare the worksheet necessary to produce the consolidated financial statements of General Appliances and its subsidiary for the year ended December 31, 2016. Include the determination and distribution of excess and income distribution schedules.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
