Sales Cost of goods sold Operating expenses Equity in earnings of Bellstar Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 ed Cash Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/24 Total liabilities and equities Note: Parentheses indicate a credit balance. 1090, 590,000 190,000 (78,000) $ (188,000) $ (1,206,000) (188,000) 115,000 $ (1,279,000) $178,000 374,000 480,000 849,000 200,000 505,000 $ 2,586,000 $ (627,000) (680,000) (1,279,000) 390,000 70,000 8 $ (130,000) S (665,000) (130,000) 70,000 $ (725,000) $ 100,000 500,000 410,000 480,000 390,000 $1,850,000 $ (655,000) (410,000) (90,000) (725,000) e $ (2,586,000) $ (1,880,000) Required: You a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a $105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer Complete this question by entering your answers in the tabs below. Required A Required B How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a $105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No 2 Transaction "TA ED Accounts < Required A *** Debit x * ☑ ☑ Show less Credit ×
Sales Cost of goods sold Operating expenses Equity in earnings of Bellstar Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 ed Cash Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/24 Total liabilities and equities Note: Parentheses indicate a credit balance. 1090, 590,000 190,000 (78,000) $ (188,000) $ (1,206,000) (188,000) 115,000 $ (1,279,000) $178,000 374,000 480,000 849,000 200,000 505,000 $ 2,586,000 $ (627,000) (680,000) (1,279,000) 390,000 70,000 8 $ (130,000) S (665,000) (130,000) 70,000 $ (725,000) $ 100,000 500,000 410,000 480,000 390,000 $1,850,000 $ (655,000) (410,000) (90,000) (725,000) e $ (2,586,000) $ (1,880,000) Required: You a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a $105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer Complete this question by entering your answers in the tabs below. Required A Required B How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a $105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 No 2 Transaction "TA ED Accounts < Required A *** Debit x * ☑ ☑ Show less Credit ×
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Sales
Cost of goods sold
Operating expenses
Equity in earnings of Bellstar
Net income
Retained earnings, 1/1/24
Net income (above)
Dividends declared
Retained earnings, 12/31/24
ed
Cash
Accounts receivable
Inventory
Investment in Bellstar
Land
Buildings and equipment (net)
Total assets
Liabilities
Common stock
Additional paid-in capital
Retained earnings, 12/31/24
Total liabilities and equities
Note: Parentheses indicate a credit balance.
1090,
590,000
190,000
(78,000)
$ (188,000)
$ (1,206,000)
(188,000)
115,000
$ (1,279,000)
$178,000
374,000
480,000
849,000
200,000
505,000
$ 2,586,000
$ (627,000)
(680,000)
(1,279,000)
390,000
70,000
8
$ (130,000)
S (665,000)
(130,000)
70,000
$ (725,000)
$ 100,000
500,000
410,000
480,000
390,000
$1,850,000
$ (655,000)
(410,000)
(90,000)
(725,000)
e
$ (2,586,000)
$ (1,880,000)
Required:
You
a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar.
b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a
$105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the building
had a 10-year remaining life at the date of transfer
Complete this question by entering your answers in the tabs below.
Required A Required B
How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a
$105,000 book value (cost of $230,000) to Bellstar for $190,000 instead of land, as the problem reports? Assume that the
building had a 10-year remaining life at the date of transfer.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.
1
No
2
Transaction
"TA
ED
Accounts
< Required A
***
Debit
x
* ☑
☑
Show less
Credit
×
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