The following balances come from the individual accounting records of these two companies as of December 31, 2023: Revenues Expenses Items Investment income Dividends declared Parkovash $ (638,000) 465,000 Not given 90,000 Salerno $ (351,000) 191,000 0 80,000 The following balances come from the individual accounting records of these two companies as of December 31, 2024: Revenues Expenses Items Investment income Dividends declared Equipment Required: Parkovash $ (776,000) 486,500 Salerno $(407,500) 222,900 Not given 110,000 510,000 60,000 311,000 a. What balance does Parkovash's Investment in Salerno account show on December 31, 2024, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2024? c-1. What is the consolidated equipment balance as of December 31, 2024? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2024 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Parkovash's Investment in Salerno account.show on December 31, 2024, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2024? c-1. What is the consolidated equipment balance as of December 31, 2024? c-2. Would this answer be affected by the investment method applied by the parent?
The following balances come from the individual accounting records of these two companies as of December 31, 2023: Revenues Expenses Items Investment income Dividends declared Parkovash $ (638,000) 465,000 Not given 90,000 Salerno $ (351,000) 191,000 0 80,000 The following balances come from the individual accounting records of these two companies as of December 31, 2024: Revenues Expenses Items Investment income Dividends declared Equipment Required: Parkovash $ (776,000) 486,500 Salerno $(407,500) 222,900 Not given 110,000 510,000 60,000 311,000 a. What balance does Parkovash's Investment in Salerno account show on December 31, 2024, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2024? c-1. What is the consolidated equipment balance as of December 31, 2024? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2024 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Req A to C2 Req D a. What balance does Parkovash's Investment in Salerno account.show on December 31, 2024, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2024? c-1. What is the consolidated equipment balance as of December 31, 2024? c-2. Would this answer be affected by the investment method applied by the parent?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following balances come from the individual accounting records of these two companies as of December 31, 2023:
Revenues
Expenses
Items
Investment income
Dividends declared
Parkovash
$ (638,000)
465,000
Not given
90,000
Salerno
$ (351,000)
191,000
0
80,000
The following balances come from the individual accounting records of these two companies as of December 31, 2024:
Revenues
Expenses
Items
Investment income
Dividends declared
Equipment
Required:
Parkovash
$ (776,000)
486,500
Salerno
$(407,500)
222,900
Not given
110,000
510,000
60,000
311,000
a. What balance does Parkovash's Investment in Salerno account show on December 31, 2024, when the equity method is applied?
b. What is the consolidated net income for the year ending December 31, 2024?
c-1. What is the consolidated equipment balance as of December 31, 2024?
c-2. Would this answer be affected by the investment method applied by the parent?
d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2024 by using initial value, partial equity
and equity method.
Complete this question by entering your answers in the tabs below.
Req A to C2
Req D
a. What balance does Parkovash's Investment in Salerno account.show on December 31, 2024, when the equity method is
applied?
b. What is the consolidated net income for the year ending December 31, 2024?
c-1. What is the consolidated equipment balance as of December 31, 2024?
c-2. Would this answer be affected by the investment method applied by the parent?
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