
Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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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 | ||
Accounts receivable | 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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Chapter 6 Solutions
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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