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6: At the of 2013, big and Little had the following income statements and balance sheets: Big Little Sales 2,000,000 400,000 Cogs 1,000,000 200,000 Gross
6: At the of 2013, big and Little had the following income statements and balance sheets: Big Little Sales 2,000,000 400,000 Cogs 1,000,000 200,000 Gross profit 1,000,000 200,000 Depreciation exp 400,000 40,000 Investment income a 0 Net income b 160,000 BIG LITTLE CASH 3,000,000 250,000 INVENTORY 3,000,000 200,000 LAND 4,000,000 1,000,000 EQUIPMENT 3,000,000 300,000 a/d equip 1,400,000 140,000 net equipment 1,600,000 160,000 Investment in Little c 0 TOTAL ASSETS d 1,610,000 ACCOUNTS PAYABLE 2,000,000 200,000 BOND PAYABLE 2,000,000 100,000 TOTAL LIABILITIES 4,000,000 300,000 COMMON STOCK 7,000,000 700,000 RETAINED EARNINGS e 610,000 Required: f) Fill in the values for a, b, c, d, and e you can use any of the 3 methods, initial value, full equity or partial equity but let me know which you are using. g) Prepare the journal entries that Big made during the year because of its investment in Little, you must use the same method as you did in part a h) Prepare the consolidated worksheet entries i) Prepare the consolidated income statement j) Prepare the consolidated balance sheet HINT: Little paid a dividend this year, Big did not
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