Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Problem 2-21 summarizes the first year Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following Trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Required a. Prepare any equity-method journal entry (ies) related to the investment in Snoopy Company during 20X9. b. Prepare a consolidation worksheet for 20X9 in good form.

Question

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Answer 1

Textbook Question

Chapter 2, Problem 2.22P

Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for
$300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000.
Problem 2-21 summarizes the first year Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following Trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Chapter 2, Problem 2.22P, Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) Peanut Company

Required
a. Prepare any equity-method journal entry(ies) related to the investment in Snoopy Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in good form.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

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Answer 2

Textbook Question

Chapter 2, Problem 2.22P

Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for
$300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000.
Problem 2-21 summarizes the first year Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following Trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Chapter 2, Problem 2.22P, Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) Peanut Company

Required
a. Prepare any equity-method journal entry(ies) related to the investment in Snoopy Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in good form.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

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Answer 3

Textbook Question

Chapter 2, Problem 2.22P

Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for
$300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000.
Problem 2-21 summarizes the first year Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following Trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Chapter 2, Problem 2.22P, Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) Peanut Company

Required
a. Prepare any equity-method journal entry(ies) related to the investment in Snoopy Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in good form.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

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Answer 4

Textbook Question

Chapter 2, Problem 2.22P

Consolidated Worksheet at End of the Second Year of Ownership (Equity Method)
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for
$300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000.
Problem 2-21 summarizes the first year Peanut’s ownership of Snoopy. Peanut uses the equity method to account for investments. The following Trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Chapter 2, Problem 2.22P, Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) Peanut Company

Required
a. Prepare any equity-method journal entry(ies) related to the investment in Snoopy Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in good form.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

Answer 8

a.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: A journal entry by equity method for the investment in S company for the year $2009$ .

Answer 13

Explanation of Solution

Particular	Debit	Credit
Equity method entry on books
Investment in S co.	300,000
Cash		300,000
Record P co. $100%$ share of the S co. $2009$ income

Investment in S	80,000
Income from S		80,000
(To record P share in S income )

Income from S	$30,000$
Investment in the S co.		$30,000$
Record P co. share in S co. Dividend
Total

Answer 14

b.

Expert Solution

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

Introduction

The consolidated balance sheet and the worksheets are the computed tools that are used to calculate the retained earnings and the dividend produced by the subsidiaries towards its parent company.

To prepare: the consolidated worksheet for the final values

Answer 19

Answer to Problem 2.22P

The consolidated worksheet is prepared and discussed.

Answer 20

Explanation of Solution

Book value calculation
	Total book value	=	Common stock	+	Retained earnings
Book value	$355,000$		$200,000$		$155,000$
Net income	$80,000$				$80000$
Dividend	$30,000$				$30000$
Ending book value	$405,000$		$200,000$		$205,000$

Income statement	P	S	Dr.	Cr.	consolidated
Sales	$850000$	$300000$			$1150000$
Less Cogs	$(270000)$	$(150000)$			$(420000)$
Depreciation Exp	$(50000)$	$(10000)$			$(60000)$
Sel. Exp	$(230000)$	$(60000)$			$(290000)$
Income from S	$80000$		$80000$
Net income	$380000$	$80000$	$80000$		$380000$

Statement of Retain Earning	P	S	Dr.	Cr.	Consolidated
Opening balance	$525000$	$155000$	$155000$		$525000$
Net income	$380000$	$80000$	$80000$		$380000$
Less dividend declared	$(225000)$	$(30000)$		$30000$	$225000$
End balance	$680000$	$205000$	$235000$	$30000$	$680000$

Income statement	P co	S co	Eliminated DR	Eliminated CR	consolidated
Cash	$230,000$	$75,000$			$305,000$
Accounts received	$190,000$	$80,000$			$270,000$
Inventory	$180,000$	$100,000$			$280,000$
Investment in scissor co	$405,000$			$405,000$	$0$
Land	$200000$	$100,000$			$300,000$
Building and equipment	$700,000$	$200,000$		$10,000$	$890,000$
Less accumulated depreciation	$500,000$	$30,000$			$520,000$
Total assets	$1,405,000$	$525,000$	$10,000$	$415,000$	$1,525,000$
Account payable	$75,000$	$35,000$
Bonds	$150,000$	$85000$
Common stocks	$500,000$	$200,000$	$200,000$
Retained earnings	$680,000$	$205,000$	$235,000$	$30,000$
Total liabilities	$1,405,000$	$525,000$	$435,000$	$30,000$	$1,525,000$

Answer 21

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