EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
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Chapter 6, Problem 6.33P
To determine
Introduction: A consolidated worksheet is used to prepare the consolidated financial statements of the parent company and its subsidiary. It reflects the individual values of the parent and the subsidiary and then one consolidated figure for both the entities.
Three part consolidation worksheet for financial year ending December 31, 20X9
Expert Solution & Answer
Answer to Problem 6.33P
The consolidated net income as per consolidated worksheet is $498,000
The consolidated
The consolidated total assets and liabilities as per consolidated worksheet is $4,786,000
Explanation of Solution
Consolidated worksheet
| Particulars | F $ | B $ | Eliminations | Consolidated $ | |
| Income statement | Debit $ | Credit $ | |||
| Sales | 3,800,000 | 1,500,000 | 180,000 | 5,120,000 | |
| Gain on sale of warehouse | 30,000 | 30,000 | |||
| Less: | |||||
| Cost of goods sold | (2,360,000) | (870,000) | 162,000 | (3,068,000) | |
| Operating expenses | (1,100,000) | (440,000) | 9,000 | (1,549,000) | |
| 35000 | (35,000) | ||||
| Income from B | 128,000 | 172,000 | 44,000 | 0 | |
| Net income | 498,000 | 190,000 | 396,000 | 206,000 | 498,000 |
| Statement of retained earnings | |||||
| Retained earnings Jan 1 | 440,000 | 156,000 | 156,000 | 440,000 | |
| Income, from above | 498,000 | 190,000 | 396,000 | 206,000 | 498,000 |
| Dividends declared | (40,000) | 0 | |||
| Retained earnings as on Dec 1 carried forward | 938,000 | 306,000 | 552,000 | 246,000 | 938,000 |
| Cash | 570,000 | 150,000 | 720,000 | ||
| 860,000 | 350,000 | 86,000 | 1,124,000 | ||
| Inventories | 1,060,000 | 410,000 | 18,000 | 1,452,000 | |
| Land, building and equipment | 1,320,000 | 680,000 | 54,000 | 2,054,000 | |
| Less: | (370,000) | (210,000) | 9,000 | (589,000) | |
| Investment in B | 838,000 | 768,000 | |||
| 70,000 | 0 | ||||
| Goodwill | 25,000 | 25,000 | |||
| Total assets | 4,278,000 | 1,380,000 | 79,000 | 951,000 | 4,786,000 |
| Accounts payable and accrued expenses | 1,340,000 | 594,000 | 86,000 | 1,848,000 | |
| Common stock | 1,700,000 | 400,000 | 400,000 | 1,700,000 | |
| Additional paid in capital | 300,000 | 80,000 | 80,000 | 300,000 | |
| Retained earnings | 938,000 | 306,000 | 552,000 | 246,000 | 938,000 |
| Total liabilities and equity | 4,278,000 | 1,380,000 | 1,118,000 | 246,000 | 4,786,000 |
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Students have asked these similar questions
Solare Company acquired mineral rights for $536,800,000. The diamond deposit is estimated at 48,800,000 tons. During the current year, 3,390,000 tons were mined and sold.
Required:
1.Determine the depletion rate.
2. Determine the amount of depletion expense for the current year.
3.Journalize the adjusting entry to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.
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Exercise 1-24 (Algo) Linking the statement of owner's equity and balance sheet LO P2
Mahomes Company reported the following data at the end of its first year of operations on December 31.
Cash
Accounts receivable
Equipment
Land
Accounts payable
Owner investments
Mahomes, Withdrawals
Net income
$ 15,500
16,500
18,500
62,500
12,500
62,500
31,500
69,500
(a) Prepare its year-end statement of owner's equity. Hint. Mahomes, Capital on January 1 was $0.
(b) Prepare its year-end balance sheet, using owner's capital calculated in part a.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare its year-end statement of owner's equity. Hint: Mahomes, Capital on January 1 was $0.
Cash
MAHOMES COMPANY
Statement of Owner's Equity
For Year Ended December 31
ht
=
ences
X
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to
launch the business. On December 31, the company's records show the following items and amounts.
Cash withdrawals by owner
Consulting revenue
Salaries expense
Cash
$ 8,450
Accounts receivable
16,950
Office supplies
4,080
Rent expense
Land
46,020
Office equipment
18,860
Telephone expense
Accounts payable
9,280
Owner investments
84,920
Miscellaneous expenses
$ 2,930
16,950
4,420
7,900
860
680
Exercise 1-18 (Algo) Preparing an income statement LO P2
Using the above information prepare a December income statement for the business.
ERNST CONSULTING
Income Statement
Revenues
Rent expense
Salaries expense
Telephone expense
Total revenues
$
4,420
7,900
860
$
SA
Assets
Cash
8,450
Accounts receivable
16,950
Office supplies
4,080
Land
46,020
Office equipment
18,860
navable
9,280
13,180
5
11
of 14
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Chapter 6 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 6 - Why must inventory transfers to related companies...Ch. 6 - Why is there a need for a consolidation entry when...Ch. 6 - Prob. 6.3QCh. 6 - How do unrealized intercompany profits on a...Ch. 6 - How do unrealized intercompany profits on an...Ch. 6 - Prob. 6.6QCh. 6 - Prob. 6.9QCh. 6 - Prob. 6.10QCh. 6 - How is the amount of consolidated retained...Ch. 6 - How will the elimination of unrealized...
Ch. 6 - Prob. 6.14QCh. 6 - Is an inventory sale from one subsidiary to...Ch. 6 - Prob. 6.16QCh. 6 - Prob. 6.1.1ECh. 6 - Prob. 6.1.2ECh. 6 - MultipleChoice Questions on Intercompany Inventory...Ch. 6 - MultipleChoice Questions on Intercompany Inventory...Ch. 6 - Prob. 6.1.5ECh. 6 - Prob. 6.1.6ECh. 6 - Prob. 6.3.1ECh. 6 - Prob. 6.3.2ECh. 6 - Prob. 6.3.3ECh. 6 - Prob. 6.4.1ECh. 6 - Prob. 6.4.2ECh. 6 - Prob. 6.4.3ECh. 6 - Prob. 6.4.4ECh. 6 - Prob. 6.5.1ECh. 6 - Prob. 6.5.2ECh. 6 - Prob. 6.5.3ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Prob. 6.15ECh. 6 - Prior-Period Inventory Profits Home Products...Ch. 6 - Prob. 6.17PCh. 6 - Prob. 6.18PCh. 6 - Prob. 6.19PCh. 6 - Prob. 6.20PCh. 6 - Prob. 6.21PCh. 6 - Prob. 6.22PCh. 6 - Prob. 6.24PCh. 6 - Prob. 6.26PCh. 6 - Prob. 6.27PCh. 6 - Prob. 6.28PCh. 6 - Prob. 6.29PCh. 6 - Prob. 6.30PCh. 6 - Prob. 6.31PCh. 6 - Prob. 6.33PCh. 6 - Prob. 6.34PCh. 6 - Prob. 6.35APCh. 6 - Prob. 6.36AP
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