On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the underlying book value. Ute paid $70,000 for the 70% ownership. Ute uses the equity method in accounting for its ownership of Cougar. During the year, Ute sold $200K inventory to Cougar. Ute’s original price on the inventory was $150K. At the end of the year Cougar had $30K in ending inventory.Prepare all the equity and eliminating entries needed as of December 31, 20X9, and complete the attached consolidated worksheet. (Please fill out the cells with bolded question marks within the table in the attached image, if you can not find some of the values to replace the question marks, that is ok!) UteCougarIncome StatementSales200,000187,000(70,000)(12,000)Other Expenses(90,000)(30,000)66,000 ???DepreciationIncome from CougarNet Income105,000146,000???NCI Net IncomeCI Net Income?????????Statement of Retained EarningsBeginning RE175,00075,000Net Income146,000105,000Less Dividends Declared(40,000)(20,000)Ending Retained Earnings281,000160,000Balance SheetCurrent Assets246,000180,000Depreicable AssetsAccumulated DepreciationInvestment in CougarTotal Assets304,000170,000(120,000)(85,000)122,000 ???552,000265,000Current Liabilities50,00030,000Long Term Liabilities121,00050,000Common Stock100,00025,000Retained EarningsNCI Share of AssetsTotal Liabilities and Equity281,000160,000??????552,000265,000

Non-controlling interest refers to when a company has no control over the decision of the shares not…

Answered: On January 1, 20X9, Ute Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the underlying book value. Ute paid $70,000 for the 70% ownership. Ute uses the equity method in accounting for its ownership of Cougar. During the year, Ute sold $200K inventory to Cougar. Ute’s original price on the inventory was $150K. At the end of the year Cougar had $30K in ending inventory.

Prepare all the equity and eliminating entries needed as of December 31, 20X9, and complete the attached consolidated worksheet. (Please fill out the cells with bolded question marks within the table in the attached image, if you can not find some of the values to replace the question marks, that is ok!)

Ute
Cougar
Income Statement
Sales
200,000
187,000
(70,000)
(12,000)
Other Expenses
(90,000)
(30,000)
66,000 ???
Depreciation
Income from Cougar
Net Income
105,000
146,000
???
NCI Net Income
CI Net Income
???
???
???
Statement of Retained Earnings
Beginning RE
175,000
75,000
Net Income
146,000
105,000
Less Dividends Declared
(40,000)
(20,000)
Ending Retained Earnings
281,000
160,000
Balance Sheet
Current Assets
246,000
180,000
Depreicable Assets
Accumulated Depreciation
Investment in Cougar
Total Assets
304,000
170,000
(120,000)
(85,000)
122,000 ???
552,000
265,000
Current Liabilities
50,000
30,000
Long Term Liabilities
121,000
50,000
Common Stock
100,000
25,000
Retained Earnings
NCI Share of Assets
Total Liabilities and Equity
281,000
160,000
???
???
552,000
265,000

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