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

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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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

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