+ On January 1, 2019 Parent Company purchased 90% of the ordinary share of Subsidiary Company...
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+ On January 1, 2019 Parent Company purchased 90% of the ordinary share of Subsidiary Company for $8,100,000. On this date, Subsidiary had ordinary share, premium, and retained earnings of $2000,000, $1300,000, and $4000,000, respectively. Sales and dividends for 2 years for parent and its Subsidiary Company were as follows: Subsidiary Sales 2019 2,300,000 2,600,000 2020 C.G.S 850,000 980,000 Operating expenses Depreciation Dividends 400,000 480,000 250000 320,000 200,000 250,000 Parents 2019 2020 5,700,000 6,400,000 2,050,000 2,820,000 600,000 720000 350,000 420,000 300,000 180000 On January 1, 2019, the Inventory was understated $400,000, Building was overstated $300,000 with remaining life of 5 years, equipment understated 100,000 for 10 years, notes payable undervalued 200,000 for 8 years and bonds payable overvalued 400000 for 10years. Required: 1) Prepare consolidated income statement for the year ended 31/12/2020? 2) Journalize all required entries for parent and its subsidiary in 31/12/2020? 3) Journalize all entries at working paper for elimination in 31/12/2020? D + On January 1, 2019 Parent Company purchased 90% of the ordinary share of Subsidiary Company for $8,100,000. On this date, Subsidiary had ordinary share, premium, and retained earnings of $2000,000, $1300,000, and $4000,000, respectively. Sales and dividends for 2 years for parent and its Subsidiary Company were as follows: Subsidiary Sales 2019 2,300,000 2,600,000 2020 C.G.S 850,000 980,000 Operating expenses Depreciation Dividends 400,000 480,000 250000 320,000 200,000 250,000 Parents 2019 2020 5,700,000 6,400,000 2,050,000 2,820,000 600,000 720000 350,000 420,000 300,000 180000 On January 1, 2019, the Inventory was understated $400,000, Building was overstated $300,000 with remaining life of 5 years, equipment understated 100,000 for 10 years, notes payable undervalued 200,000 for 8 years and bonds payable overvalued 400000 for 10years. Required: 1) Prepare consolidated income statement for the year ended 31/12/2020? 2) Journalize all required entries for parent and its subsidiary in 31/12/2020? 3) Journalize all entries at working paper for elimination in 31/12/2020? D
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The image contains a scenario in which Parent Company purchased 90 of the ordinary shares of Subsidiary Company along with some financial figures for two subsequent years The image further requests th... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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