Jones Dancer Corporation Corporation Cash ... 70,500 67,500 75,000 65,000 Accounts Receivable . 450,000 200,000 Inventory ... Investment in Bonds.. Plant and Equipment (net) . Investment in Dancer Corporation. Accounts Payable .... Bonds Payable (7%) Common Stock ($10 par)–Jones .. Paidin Capital in Excess of Par-Jones.. Retained Earnings, January 1, 2016-Jones Common Stock ($10 par)-Dancer.... Paidin Capital in Excessof Par-Dancer Retained Earnings, January 1, 2016 Dancer. Sales ..... 48,250 2,420,000 350,000 (275,000) 196,000 (18,000) (50,000) (1,000,000) (750,000) (730,000) (100,000) (130,000) (80,000) (540,000) 405,000 (2,500,000) 1,000,000 Cost of Goods Sold . Other Expenses Interest Income.. Interest Expense.. 720,000 (3,750) 106,000 3,500 Totals....
Since its 100% acquisition of Dancer Corporation stock on December 31, 2012, Jones Corporation has maintained its investment under the equity method. However, due to Dancer’s earning potential, the price included a $40,000 payment for
1. Prepare the worksheet entries needed to eliminate the intercompany debt on December 31, 2016.
2. Prepare a consolidated income statement for the year ended December 31, 2016.
Note: No worksheet is required.
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