On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the underlying book value. Ute paid $70,000 for the 70% ownership. Ute uses the equity method in accounting for its ownership of Standard. During the year, Ute sold $200K inventory to Cougar. Ute’s original price on the inventory was $150K. At the end of the year Cougar had $30K in ending inventory.Prepare all the equity and eliminating entries needed as of December 31, 20X9, and complete the attached consolidated worksheet (Please fill out the cells with bolded question marks within the consolidated worksheet as well, if you can not find some of the values to replace the question marks, that is ok, but indicate which specific cell you are answering for the ones you do know, thank you). AUteCougarIncome StatementSales200,000187,000Other Expenses(90,000)(70,000)(30,000) (12,000)66,000 ???DepreciationIncome from StandardNet Income146,000???105,000NCI Net IncomeCI Net Income?????????Statement of Retained EarningsBeginning RE175,00075,000Net Income146,000105,000Less Dividends Declared(40,000) (20,000)Ending Retained Earnings281,000160,000Balance SheetCurrent Assets246,000180,000Depreicable AssetsAccumulated DepreciationInvestment in Standard304,000170,000(120,000) (85,000)122,000 ???265,000Total Assets552,000Current Liabilities50,00030,000Long Term Liabilities121,00050,000Common Stock100,00025,000Retained Earnings281,000160,000NCI Share of Assets??????Total Liabilities and Equity552,000265,000

Non-controlling interest refers to when a company has no control over the decision of the shares not…

Answered: Ute sold $20

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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On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the underlying book value. Ute paid $70,000 for the 70% ownership. Ute uses the equity method in accounting for its ownership of Standard. During the year, Ute sold $200K inventory to Cougar. Ute’s original price on the inventory was $150K. At the end of the year Cougar had $30K in ending inventory.

Prepare all the equity and eliminating entries needed as of December 31, 20X9, and complete the attached consolidated worksheet (Please fill out the cells with bolded question marks within the consolidated worksheet as well, if you can not find some of the values to replace the question marks, that is ok, but indicate which specific cell you are answering for the ones you do know, thank you).

A
Ute
Cougar
Income Statement
Sales
200,000
187,000
Other Expenses
(90,000)
(70,000)
(30,000) (12,000)
66,000 ???
Depreciation
Income from Standard
Net Income
146,000
???
105,000
NCI Net Income
CI Net Income
???
???
???
Statement of Retained Earnings
Beginning RE
175,000
75,000
Net Income
146,000
105,000
Less Dividends Declared
(40,000) (20,000)
Ending Retained Earnings
281,000
160,000
Balance Sheet
Current Assets
246,000
180,000
Depreicable Assets
Accumulated Depreciation
Investment in Standard
304,000
170,000
(120,000) (85,000)
122,000 ???
265,000
Total Assets
552,000
Current Liabilities
50,000
30,000
Long Term Liabilities
121,000
50,000
Common Stock
100,000
25,000
Retained Earnings
281,000
160,000
NCI Share of Assets
???
???
Total Liabilities and Equity
552,000
265,000

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