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.

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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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.
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.
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