Wayne Company purchased 100% of Schuster Company on January 1, 20X1 for $800,000 when the book value of Schuster was $750,000 with the excess caused by a patent that was undervalued by $50,000. The patent had a five year life. In 20x2 Wayne sold inventory to Schuster still in the inventory of Schuster at year end with a profit of $3,000. During 20x3, Wayne sold inventory to Schuster at a cost of $20,000 for $30,000. At December 31, 20x3, Schuster still had $6,000 cost to Schuster of that inventory on hand in its inventory. The income statements and balance sheets for the two companies for 20X3 are shown below: Complete the consolidated worksheet. Wayne Schuster Dr. Cr Consolidated Sales 300,000 100,000 Cost of Goods Sold 60,000 40,000 240,000 60,000 Expenses 40,000 10,000 Income from S _______ _______ Total Income 50,000 Begin. RE 800,000 730,000 Dividends 20,000 10,000 End. RE 770,000 Cash 100,000 100,000 Receivables 70,000 100,000 Inventory 50,000 50,000 Propety/Equipment 500,000 900,000 Accumulated Depr -100,000 -100,000 Patents 0 50,000 Investment in S 988,000 ________ 1,608,000 1,100,000 Liabilities 200,000 130,000 Capital Stock 200,000 Retained Earnings _______ 770,000 1,608,000 1,100,000

Wayne Company purchased 100% of Schuster Company on January 1, 20X1 for $800,000 when the book value of Schuster was $750,000 with the excess caused by a patent that was undervalued by $50,000. The patent had a five year life. In 20x2 Wayne sold inventory to Schuster still in the inventory of Schuster at year end with a profit of $3,000. During 20x3, Wayne sold inventory to Schuster at a cost of $20,000 for $30,000. At December 31, 20x3, Schuster still had $6,000 cost to Schuster of that inventory on hand in its inventory. The income statements and balance sheets for the two companies for 20X3 are shown below: Complete the consolidated worksheet. Wayne Schuster Dr. Cr Consolidated Sales 300,000 100,000 Cost of Goods Sold 60,000 40,000 240,000 60,000 Expenses 40,000 10,000 Income from S ___ _ Total Income 50,000 Begin. RE 800,000 730,000 Dividends 20,000 10,000 End. RE 770,000 Cash 100,000 100,000 Receivables 70,000 100,000 Inventory 50,000 50,000 Propety/Equipment 500,000 900,000 Accumulated Depr -100,000 -100,000 Patents 0 50,000 Investment in S 988,000 1,608,000 1,100,000 Liabilities 200,000 130,000 Capital Stock 200,000 Retained Earnings _ 770,000 1,608,000 1,100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question


Wayne Company purchased 100% of Schuster Company on January 1, 20X1 for $800,000 when the book value of Schuster
was $750,000 with the excess caused by a patent that was undervalued by $50,000. The patent had a five year life.
In 20x2 Wayne sold inventory to Schuster
still in the inventory of Schuster at year end with a profit of $3,000. During 20x3, Wayne sold inventory to Schuster at a cost of $20,000 for $30,000.
At December 31, 20x3, Schuster still had $6,000 cost to Schuster of that inventory on hand in its inventory.

The income statements and balance sheets for the two companies for 20X3 are shown below:

Complete the consolidated worksheet.
		Wayne	Schuster	Dr.	Cr	Consolidated
Sales		300,000	100,000
Cost of Goods Sold	60,000	40,000
		240,000	60,000
Expenses		40,000	10,000
Income from S	_______	_______
Total Income		50,000

Begin. RE		800,000	730,000
Dividends		20,000	10,000
End. RE			770,000

Cash		100,000	100,000
Receivables	70,000	100,000
Inventory		50,000	50,000
Propety/Equipment	500,000	900,000
Accumulated Depr	-100,000	-100,000
Patents		0	50,000


Investment in S	988,000	________
		1,608,000	1,100,000

Liabilities		200,000	130,000
Capital Stock		200,000
Retained Earnings	_______	770,000
		1,608,000	1,100,000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions