Sales Accounts Consolidation Worksheet For the Year Ending December 31, 2024 Abbey Bellstar $ (1,020,000) $ (720,000) Cost of goods sold Operating expenses Equity in earnings of Bellstar Separate company net income Consolidated net income To noncontrolling interest To Abbey Company Retained earnings, Abbey, 1/1 Retained earnings, Bellstar, 1/1 Net income Dividends declared Retained earnings, 12/31 S 720,000 100,000 (81,000) 520,000 65,000 0 (281,000) $ (135,000) $ (1,338,000) (281,000) 135,000 (730,000) (135,000) 80,000 Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals Cash Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment (net) Trademark Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31 Noncontrolling interest 1/1 Noncontrolling interest 12/31 Total liabilities and equity $ (1,482,000) $ (785,000) S 191,000 $ 80,000 400,000 630,000 610,000 540,000 1,047,000 190,000 610,000 518,000 520,000 $ 2,956,000 $2,380,000 S (664,000) $ (955,000) (810,000) (540,000) (100,000) (1,482,000) (785,000) $ (2,958,000) $ (2,380,000) $ S 0 The Individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent Interest in Bellstar on January 1, 2023, in exchange for various considerations totaling $960,000. At the acquisition date, the fair value of the noncontrolling Interest was $640,000 and Bellstar's book value was $1,280,000. Bellstar had developed Internally a trademark that was not recorded on its books but had an acquisition-date fair value of $320,000. This Intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its Investment in Bellstar. Abbey sold Bellstar land with a book value of $65,000 on January 2, 2023, for $150,000. Bellstar still holds this land at the end of the current year. Bellstar regularly transfers Inventory to Abbey. In 2023, it shipped Inventory costing $259,000 to Abbey at a price of $370,000. During 2024, Intra-entity shipments totaled $420,000, although the original cost to Bellstar was only $273,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $70,000 at the end of 2024. Items 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 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. Required: Abbey Company Bellstar Company $ (1,020,000) 720,000 100,000 (81,000) $ (281,000) $ (1,336,000) (281,000) 135,000 $ (1,482,000) $ 191,000 400,000 610,000 1,047,000 190,000 518,000 $ 2,956,000 $ (664,000) (810,000) Ө (1,482,000) $ (2,956,000) $ (720,000) 520,000 65,000 $ (135,000) $ (730,000) (135,000) 80,000 $ (785,000) $ 80,000 630,000 540,000 610,000 520,000 $ 2,380,000 $ (955,000) (540,000) (100,000) (785,000) $ (2,380,000) a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar.

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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Question
Sales
Accounts
Consolidation Worksheet
For the Year Ending December 31, 2024
Abbey
Bellstar
$ (1,020,000) $ (720,000)
Cost of goods sold
Operating expenses
Equity in earnings of Bellstar
Separate company net income
Consolidated net income
To noncontrolling interest
To Abbey Company
Retained earnings, Abbey, 1/1
Retained earnings, Bellstar, 1/1
Net income
Dividends declared
Retained earnings, 12/31
S
720,000
100,000
(81,000)
520,000
65,000
0
(281,000) $ (135,000)
$ (1,338,000)
(281,000)
135,000
(730,000)
(135,000)
80,000
Debit
Consolidation Entries
Credit
Noncontrolling Consolidated
Interest
Totals
Cash
Accounts receivable
Inventory
Investment in Bellstar
Land
Buildings and equipment (net)
Trademark
Total assets
Liabilities
Common stock
Additional paid-in capital
Retained earnings, 12/31
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities and equity
$ (1,482,000) $
(785,000)
S 191,000 $
80,000
400,000
630,000
610,000
540,000
1,047,000
190,000
610,000
518,000
520,000
$ 2,956,000 $2,380,000
S (664,000) $ (955,000)
(810,000)
(540,000)
(100,000)
(1,482,000)
(785,000)
$ (2,958,000) $ (2,380,000) $
S
0
Transcribed Image Text:Sales Accounts Consolidation Worksheet For the Year Ending December 31, 2024 Abbey Bellstar $ (1,020,000) $ (720,000) Cost of goods sold Operating expenses Equity in earnings of Bellstar Separate company net income Consolidated net income To noncontrolling interest To Abbey Company Retained earnings, Abbey, 1/1 Retained earnings, Bellstar, 1/1 Net income Dividends declared Retained earnings, 12/31 S 720,000 100,000 (81,000) 520,000 65,000 0 (281,000) $ (135,000) $ (1,338,000) (281,000) 135,000 (730,000) (135,000) 80,000 Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals Cash Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment (net) Trademark Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31 Noncontrolling interest 1/1 Noncontrolling interest 12/31 Total liabilities and equity $ (1,482,000) $ (785,000) S 191,000 $ 80,000 400,000 630,000 610,000 540,000 1,047,000 190,000 610,000 518,000 520,000 $ 2,956,000 $2,380,000 S (664,000) $ (955,000) (810,000) (540,000) (100,000) (1,482,000) (785,000) $ (2,958,000) $ (2,380,000) $ S 0
The Individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey
acquired a 60 percent Interest in Bellstar on January 1, 2023, in exchange for various considerations totaling $960,000. At the
acquisition date, the fair value of the noncontrolling Interest was $640,000 and Bellstar's book value was $1,280,000. Bellstar had
developed Internally a trademark that was not recorded on its books but had an acquisition-date fair value of $320,000. This
Intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its Investment in Bellstar.
Abbey sold Bellstar land with a book value of $65,000 on January 2, 2023, for $150,000. Bellstar still holds this land at the end of the
current year.
Bellstar regularly transfers Inventory to Abbey. In 2023, it shipped Inventory costing $259,000 to Abbey at a price of $370,000. During
2024, Intra-entity shipments totaled $420,000, although the original cost to Bellstar was only $273,000. In each of these years, 20
percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $70,000 at
the end of 2024.
Items
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
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.
Required:
Abbey Company
Bellstar Company
$ (1,020,000)
720,000
100,000
(81,000)
$ (281,000)
$ (1,336,000)
(281,000)
135,000
$ (1,482,000)
$ 191,000
400,000
610,000
1,047,000
190,000
518,000
$ 2,956,000
$ (664,000)
(810,000)
Ө
(1,482,000)
$ (2,956,000)
$ (720,000)
520,000
65,000
$ (135,000)
$ (730,000)
(135,000)
80,000
$ (785,000)
$ 80,000
630,000
540,000
610,000
520,000
$ 2,380,000
$ (955,000)
(540,000)
(100,000)
(785,000)
$ (2,380,000)
a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar.
Transcribed Image Text:The Individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent Interest in Bellstar on January 1, 2023, in exchange for various considerations totaling $960,000. At the acquisition date, the fair value of the noncontrolling Interest was $640,000 and Bellstar's book value was $1,280,000. Bellstar had developed Internally a trademark that was not recorded on its books but had an acquisition-date fair value of $320,000. This Intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its Investment in Bellstar. Abbey sold Bellstar land with a book value of $65,000 on January 2, 2023, for $150,000. Bellstar still holds this land at the end of the current year. Bellstar regularly transfers Inventory to Abbey. In 2023, it shipped Inventory costing $259,000 to Abbey at a price of $370,000. During 2024, Intra-entity shipments totaled $420,000, although the original cost to Bellstar was only $273,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $70,000 at the end of 2024. Items 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 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. Required: Abbey Company Bellstar Company $ (1,020,000) 720,000 100,000 (81,000) $ (281,000) $ (1,336,000) (281,000) 135,000 $ (1,482,000) $ 191,000 400,000 610,000 1,047,000 190,000 518,000 $ 2,956,000 $ (664,000) (810,000) Ө (1,482,000) $ (2,956,000) $ (720,000) 520,000 65,000 $ (135,000) $ (730,000) (135,000) 80,000 $ (785,000) $ 80,000 630,000 540,000 610,000 520,000 $ 2,380,000 $ (955,000) (540,000) (100,000) (785,000) $ (2,380,000) a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar.
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