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Lailple 7: Consolidated financial statements -2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: P Cash 65000 25000 Accounts receivables 40000 30000 Inventory Equipments 25000 15000 110000 85000 Land 48500 45000 Investment 175500 15000 150000 60000 35000 dividends declared 20000 Cost of goods sold operating expenses total debits 15000 669000 290000 20000 accounts payable other liabilities 15000 15000 25000 capital - C.S other contributed capital 200000 120000 70000 20000 retained earnings 1/1/2007 55000 sales 25000 300000 85000 equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 9000 669000 290000 P cash 70000 10000 Accounts receivables 60000 35000 40000 30000 inventory equipments 125000 90000 land 48500 45000 investment dividends declared 184500 20000 160000 65000 35000 15000 Cost of goods sold operating expenses total debits 20000 743000 310000 16500 15000 200000 120000 accounts payable 16000 other liabilities 24000 capital - C.S other contributed capital retained earnings 1/1/2008 159000 20000 70000 20000 260000 110000 22500 743000 310000 sales Quity in S income total credits

Lailple 7: Consolidated financial statements -2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: P Cash 65000 25000 Accounts receivables 40000 30000 Inventory Equipments 25000 15000 110000 85000 Land 48500 45000 Investment 175500 15000 150000 60000 35000 dividends declared 20000 Cost of goods sold operating expenses total debits 15000 669000 290000 20000 accounts payable other liabilities 15000 15000 25000 capital - C.S other contributed capital 200000 120000 70000 20000 retained earnings 1/1/2007 55000 sales 25000 300000 85000 equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 9000 669000 290000 P cash 70000 10000 Accounts receivables 60000 35000 40000 30000 inventory equipments 125000 90000 land 48500 45000 investment dividends declared 184500 20000 160000 65000 35000 15000 Cost of goods sold operating expenses total debits 20000 743000 310000 16500 15000 200000 120000 accounts payable 16000 other liabilities 24000 capital - C.S other contributed capital retained earnings 1/1/2008 159000 20000 70000 20000 260000 110000 22500 743000 310000 sales Quity in S income total credits

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Laiiple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: Cash 65000 25000 Accounts receivables 40000 30000 15000 Inventory Equipments 25000 110000 48500 85000 Land 45000 Investment dividends declared Cost of goods sold 175500 20000 15000 60000 150000 operating expenses total debits 35000 15000 669000 290000 20000 15000 accounts payable other liabilities 15000 25000 capital - C.S other contributed capital retained earnings 1/1/2007 sales equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 200000 120000 70000 20000 55000 25000 300000 85000 9000 669000 290000 P cash 70000 10000 60000 35000 Accounts receivables inventory equipments 40000 30000 125000 90000 45000 land 48500 investment 184500 20000 dividends declared 15000 Cost of goods sold 160000 65000 operating expenses total debits 35000 20000 743000 310000 accounts payable 16500 16000 other liabilities 15000 24000 200000 120000 20000 retained earnings 1/1/2008 159000 20000 260000 110000 capital - C.S other contributed capital 70000 sales Quity in S income total credits 22500 | 743000 310000
Transcribed Image Text:Laiiple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: Cash 65000 25000 Accounts receivables 40000 30000 15000 Inventory Equipments 25000 110000 48500 85000 Land 45000 Investment dividends declared Cost of goods sold 175500 20000 15000 60000 150000 operating expenses total debits 35000 15000 669000 290000 20000 15000 accounts payable other liabilities 15000 25000 capital - C.S other contributed capital retained earnings 1/1/2007 sales equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 200000 120000 70000 20000 55000 25000 300000 85000 9000 669000 290000 P cash 70000 10000 60000 35000 Accounts receivables inventory equipments 40000 30000 125000 90000 45000 land 48500 investment 184500 20000 dividends declared 15000 Cost of goods sold 160000 65000 operating expenses total debits 35000 20000 743000 310000 accounts payable 16500 16000 other liabilities 15000 24000 200000 120000 20000 retained earnings 1/1/2008 159000 20000 260000 110000 capital - C.S other contributed capital 70000 sales Quity in S income total credits 22500 | 743000 310000
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