Homework Help is Here – Start Your Trial Now!
Business
Accounting
The financial statements of Post Company and Stamp Company on December 31, Year 5, were as foll Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) $ Post 50,000 250,000 $ Stamp 10,000 100,000 520,000 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000

The financial statements of Post Company and Stamp Company on December 31, Year 5, were as foll Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) $ Post 50,000 250,000 $ Stamp 10,000 100,000 520,000 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do not give image format

The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Common shares Retained earnings Sales revenue Other revenues Cost of goods sold Selling and administrative expenses Other expenses Income tax expense Net income Retained earnings, beginning balance $ Dividends declared Retained earnings, ending balance Post 50,000 250,000 STATEMENTS OF INCOME AND RETAINED EARNINGS Post $3,500,000 $ 300,000 3,800,000 1,700,000 300,000 200,000 300,000 4,000,000 3,000,000 5,600,000 $12,900,000 $ 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000 $12,900,000 Stamp 10,000 100,000 520,000 $ 300,000 $ 170,000 1,100,000 500,000 1,860,000 $3,630,000 - $3,630,000 Stamp 900,000 30,000 930,000 330,000 100,000 150,000 70,000 $2,500,000 650,000 1,300,000 280,000 $4,500,000 $ 1,600,000 5,800,000 18,800,000 200,000 $5,600,000 20,000 $ 1,860,000
Transcribed Image Text:The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Common shares Retained earnings Sales revenue Other revenues Cost of goods sold Selling and administrative expenses Other expenses Income tax expense Net income Retained earnings, beginning balance $ Dividends declared Retained earnings, ending balance Post 50,000 250,000 STATEMENTS OF INCOME AND RETAINED EARNINGS Post $3,500,000 $ 300,000 3,800,000 1,700,000 300,000 200,000 300,000 4,000,000 3,000,000 5,600,000 $12,900,000 $ 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000 $12,900,000 Stamp 10,000 100,000 520,000 $ 300,000 $ 170,000 1,100,000 500,000 1,860,000 $3,630,000 - $3,630,000 Stamp 900,000 30,000 930,000 330,000 100,000 150,000 70,000 $2,500,000 650,000 1,300,000 280,000 $4,500,000 $ 1,600,000 5,800,000 18,800,000 200,000 $5,600,000 20,000 $ 1,860,000
Additional Information Post owns 70 percent of Stamp and carries its investment in Stamp on its books by the cost method. During Year 4, Post sold Stamp $100,000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5, Post had sales of $200,000 to Stamp, of which 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price. On December 31, Year 4, Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31, Year 5, Post had in its ending inventories $100,000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5. Intercompany sales are priced to provide Stamp with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. Which of the following would appear on Post's consolidated balance sheet on December 31, Year 5, for non-controlling interest? Multiple Choice $721,500 $714,750 $694,500 $708,000
Transcribed Image Text:Additional Information Post owns 70 percent of Stamp and carries its investment in Stamp on its books by the cost method. During Year 4, Post sold Stamp $100,000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5, Post had sales of $200,000 to Stamp, of which 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price. On December 31, Year 4, Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31, Year 5, Post had in its ending inventories $100,000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5. Intercompany sales are priced to provide Stamp with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. Which of the following would appear on Post's consolidated balance sheet on December 31, Year 5, for non-controlling interest? Multiple Choice $721,500 $714,750 $694,500 $708,000
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS