Included in Costello's income are intercompany sales to Abbot of 40,000 with a cost to Costello of $25,000. 30% of this inventory is on hand in the Abbot inventory at December 31, 20X3. In addition, inventory sold at a profit of $5,000 was in the inventory of Abbot at December 31, 20X2. Complete the consolidation worksheet. First, complete the financial statements below. Below are the balances of accounts of Abbot and Costello at December 31, 20X3. Consolidation Entries Consolidated Bal. Abbot Costello Dr. Cr. Sales $50,000 $250,000 Expenses $30,000 $150,000 Income from S. Income $100,000 NCI Controlling Interest Retained Earnings Jan 1, 10 $700,000 $190,000 Dividends 100,000 Retained Earnings Dec 31, 10 $290,000 Cash $120,000 $30,000 Receivables 90,000 70,000 Inventory 100,000 100,000 Equipment (net) 100,000 350,000 Patents 50,000 Investment in Costello 796,400 Goodwill Land 100,000 100,000 Building (net) 120,000 100,000 $1,426,400 $800,000

Included in Costello's income are intercompany sales to Abbot of 40,000 with a cost to Costello of $25,000. 30% of this inventory is on hand in the Abbot inventory at December 31, 20X3. In addition, inventory sold at a profit of $5,000 was in the inventory of Abbot at December 31, 20X2. Complete the consolidation worksheet. First, complete the financial statements below. Below are the balances of accounts of Abbot and Costello at December 31, 20X3. Consolidation Entries Consolidated Bal. Abbot Costello Dr. Cr. Sales $50,000 $250,000 Expenses $30,000 $150,000 Income from S. Income $100,000 NCI Controlling Interest Retained Earnings Jan 1, 10 $700,000 $190,000 Dividends 100,000 Retained Earnings Dec 31, 10 $290,000 Cash $120,000 $30,000 Receivables 90,000 70,000 Inventory 100,000 100,000 Equipment (net) 100,000 350,000 Patents 50,000 Investment in Costello 796,400 Goodwill Land 100,000 100,000 Building (net) 120,000 100,000 $1,426,400 $800,000

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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