Soal 2 (60) Perry acquired 80% of Salt on 1/1/2020 for $560,000 when Salt's equity consisted of $200,000 capital stock and $200,000 retained earnings. Salt's inventory was understated by $50,000 Equipment with Page 1 of 2 POL JUR KNIK NEGERI BANDUNG AN AKUNTANSI POLBAN a 10-year life, was understated by $100,000 and building, with a 20-year life, was understated by $100,000. Any excess is goodwill. Separate Income Dividens 2020 2021 Salt Perry Salt Perry $1,450,000 $950,000 $1,700,000 $1,150,000 $ 800,000 $300,000 $850,000 $ 450,000 During 2020, Salt sold goods for $900,000 to Perry at a 20% markup. $360,000 of these goods were in Perry's ending inventory. In 2021, Salt sold goods for $1,200,000 to Perry at a 25% markup and Perry still had $125,000 on hand at the end of the year. REQUIRED 1. Calculate the goodwill that should be reported in the consolidated balance sheet at December 31, 2021 2. Calculate income from Salt. for 2020 and 2021 3. Calculate the balance of the Investment in Salt account at December 31, 2020 and 2021 4. Calculate Noncontrolling interest share from Salt. for 2020 and 2021 5. Calculate noncontrolling interest balance at December 31, 2020 and 2021 6. Prepare journal of working papers for 2020, 2021

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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Soal 2 (60) Perry acquired 80% of Salt on 1/1/2020 for $560,000 when Salt's equity consisted of $200,000 capital stock and $200,000 retained earnings. Salt's inventory was understated by $50,000 Equipment with Page 1 of 2 POL JUR KNIK NEGERI BANDUNG AN AKUNTANSI POLBAN a 10-year life, was understated by $100,000 and building, with a 20-year life, was understated by $100,000. Any excess is goodwill. Separate Income Dividens 2020 2021 Salt Perry Salt Perry $1,450,000 $950,000 $1,700,000 $1,150,000 $ 800,000 $300,000 $850,000 $ 450,000 During 2020, Salt sold goods for $900,000 to Perry at a 20% markup. $360,000 of these goods were in Perry's ending inventory. In 2021, Salt sold goods for $1,200,000 to Perry at a 25% markup and Perry still had $125,000 on hand at the end of the year. REQUIRED 1. Calculate the goodwill that should be reported in the consolidated balance sheet at December 31, 2021 2. Calculate income from Salt. for 2020 and 2021 3. Calculate the balance of the Investment in Salt account at December 31, 2020 and 2021 4. Calculate Noncontrolling interest share from Salt. for 2020 and 2021 5. Calculate noncontrolling interest balance at December 31, 2020 and 2021 6. Prepare journal of working papers for 2020, 2021

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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