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Accounting
Required: Complete the consolidation working papers for Investor and subsidiary

Required: Complete the consolidation working papers for Investor and subsidiary

FINANCIAL ACCOUNTING
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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305.

Subject ; - Accounting 

B C D 17 18 19 20 21 E F G H 1 I K 1 2 Patty Corporation acquired a 75% interest in Sue Corporation for $300,000 on January 1 2009 3 When Sue's equity consisted of $ 150,000 capital stock and $ 50,000 retained earnings 4 The fair value of Sue's assets and liabilities were equal to their book values on this date and any goodwill s is not amortized. Patty uses the equty method of acconting for Sue 6 L 7 During 2009 Pattty sold inventory items to Sue for $80,000 and at December 31, 2009 Sue's inventory 8 included ittems on which there were $10,000 unrealized profits. During 2010, Patty sold invenory items to Sue 9 for $130,000 and at December 31, 2010 Sue's inventory included items on which there were $20,000 unrelized 10 profits Required: Complete the consolidation working papers for Investor and subsidiary M 11 12 On December 31, 2010. Sue owed Patty $15.000 on account for merchandise purchases the financial statements 13 of Patty and sue Corporations at and for the year ended December 31 2010 are summariezed as folows 14 (in thousands ) 15 16 N
Transcribed Image Text:B C D 17 18 19 20 21 E F G H 1 I K 1 2 Patty Corporation acquired a 75% interest in Sue Corporation for $300,000 on January 1 2009 3 When Sue's equity consisted of $ 150,000 capital stock and $ 50,000 retained earnings 4 The fair value of Sue's assets and liabilities were equal to their book values on this date and any goodwill s is not amortized. Patty uses the equty method of acconting for Sue 6 L 7 During 2009 Pattty sold inventory items to Sue for $80,000 and at December 31, 2009 Sue's inventory 8 included ittems on which there were $10,000 unrealized profits. During 2010, Patty sold invenory items to Sue 9 for $130,000 and at December 31, 2010 Sue's inventory included items on which there were $20,000 unrelized 10 profits Required: Complete the consolidation working papers for Investor and subsidiary M 11 12 On December 31, 2010. Sue owed Patty $15.000 on account for merchandise purchases the financial statements 13 of Patty and sue Corporations at and for the year ended December 31 2010 are summariezed as folows 14 (in thousands ) 15 16 N
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