The trial balance of Astris Company and Exile Company in the above problem for December 31, 2023, its second year of operations are presented below: Astris Company Exile Company Current assets Non-current assets P152,000 270,000 P115,000 160,000 Investment in Exile Company 250,000 Current liabilities (80,000) Common stock, P10 par (300,000) (100,000) Retained earnings, January 1, 2023 (244,000) (170,000) Sales (200,000) (100,000) Expenses 160,000 85,000 Dividend income (from Exile Company) (8,000) Dividends declared 10,000 Astris Company continues to use the cost method to record its investment in Exile Company. Required: 1. Prepare all eliminations and adjustments that would be made on the 2023 consolidation working papers. 2. Prepare the 2023 consolidated income statement and its related income distribution.
The trial balance of Astris Company and Exile Company in the above problem for December 31, 2023, its second year of operations are presented below: Astris Company Exile Company Current assets Non-current assets P152,000 270,000 P115,000 160,000 Investment in Exile Company 250,000 Current liabilities (80,000) Common stock, P10 par (300,000) (100,000) Retained earnings, January 1, 2023 (244,000) (170,000) Sales (200,000) (100,000) Expenses 160,000 85,000 Dividend income (from Exile Company) (8,000) Dividends declared 10,000 Astris Company continues to use the cost method to record its investment in Exile Company. Required: 1. Prepare all eliminations and adjustments that would be made on the 2023 consolidation working papers. 2. Prepare the 2023 consolidated income statement and its related income distribution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The trial balance of Astris Company and Exile Company in the above problem for December 31, 2023, its second year of
operations are presented below:
Astris Company Exile Company
Current assets
Non-current assets
P152,000
270,000
P115,000
160,000
Investment in Exile Company
250,000
Current liabilities
(80,000)
Common stock, P10 par
(300,000)
(100,000)
Retained earnings, January 1, 2023
(244,000)
(170,000)
Sales
(200,000)
(100,000)
Expenses
160,000
85,000
Dividend income (from Exile Company)
(8,000)
Dividends declared
10,000
Astris Company continues to use the cost method to record its investment in Exile Company.
Required:
1. Prepare all eliminations and adjustments that would be made on the 2023 consolidation working papers.
2. Prepare the 2023 consolidated income statement and its related income distribution.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education