Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows: Plug Products Spark Filter Company Credit Debit Credit Debit Cash and Accounts Receivable $ 149,000 $ 110,000 Inventory 239,000 116,000 Buildings and Equipment (net) 281,000 183,000 Investment in Spark Filter Company 264,640 Cost of Goods Sold 174,000 139,000 Depreciation Expense 40,000 30,000 Current Liabilities $ 178,200 $ 65,000 Common Stock 200,000 89,000 Retained Earnings 464,000 210,000 Sales 264,000 214,000 Income from Spark Filter Company 41,440 Total $ 1,147,640 $ 1,147,640 $ 578,000 $ 578,000 On January 1, 20X8, Plug's inventory contained filters purchased for $70,000 from Spark Filter, which had produced the filters for $50,000. In 20X8, Spark Filter spent $110,000 to produce additional filters, which it sold to Plug for $154,000. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $46,200 of the 20X8 purchase from Spark Filter. Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows:
Plug Products | Spark Filter Company | |||
---|---|---|---|---|
Credit | Debit | Credit | Debit | |
Cash and Accounts Receivable | $ 149,000 | $ 110,000 | ||
Inventory | 239,000 | 116,000 | ||
Buildings and Equipment (net) | 281,000 | 183,000 | ||
Investment in Spark Filter Company | 264,640 | |||
Cost of Goods Sold | 174,000 | 139,000 | ||
Depreciation Expense | 40,000 | 30,000 | ||
Current Liabilities | $ 178,200 | $ 65,000 | ||
Common Stock | 200,000 | 89,000 | ||
Retained Earnings | 464,000 | 210,000 | ||
Sales | 264,000 | 214,000 | ||
Income from Spark Filter Company | 41,440 | |||
Total | $ 1,147,640 | $ 1,147,640 | $ 578,000 | $ 578,000 |
On January 1, 20X8, Plug's inventory contained filters purchased for $70,000 from Spark Filter, which had produced the filters for $50,000. In 20X8, Spark Filter spent $110,000 to produce additional filters, which it sold to Plug for $154,000. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $46,200 of the 20X8 purchase from Spark Filter.
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Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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