"6-16 Complete equity with downstream sales. Pruitt corporation owns 90% of the common stock of Sedbrook company. The stock was purchased for $540,000 on January 1, 2009, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balance for the two companies at December 31, 2013 are presented here: (see attached templates). The January 1, 2013 inventory of Sedbrook Company includes $30,000 of profit recorded by Pruitt Corporation on 2012 sales. During 2013, Pruitt Corporation made intercompany sales of $200,000 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2013 from Pruitt for $50,000. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Required: A. Prepare the consolidated statements workpaper for the year ended December 31, 2013. B. Calculate consolidated retained earnings on December 31, 2013, using the analytical or t-account approach. Problem 6-17 Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2009, when Segal Company's retained earnings were $150,000. Finanicial data for 2013 are presented here (see attached templates) The January 1, 2013 inventory of Paque Corporation includes $45,000 of profit recorded by Segal Company on 2012 sales. During 2013, Segal Company made intercompany sales of $300,000 with a markup of 20% of selling price. The ending inventory of Paque Corporation includes goods purchased in 2013 from Segal Company for $75,000. Paque Corporation uses the complete equity method to record its investment in Segal Company. Required: A. Prepare the consolidated statements workpaper for the year ended December 31, 2013. B. Calculate consolidated retained earnings on December 31, 2013, using the analystical or t-account approach." You only need to answer 6-16 and 6-17 - disregard the other problems within the template
Chapter 6 Introduction to this program This worksheet contains spreadsheets that complete the consolidated worksheet after the student inputs the eliminating journal entries on the consolidated worksheet. 1. To activate the process, a debit must be entered into the debit elimination entry column. 2. There is a separate column, in which to enter the number or letter to key the entry (e.g. (1) or (a)). 3. In some cases, balance sheet accounts may need to be added. The first cell in the row to enter the accounts will be shaded. 4. If two rows in the elimination columns contain brackets (i.e. [ or { ), this means that two rows can be used for the same account. In other words, more than one debit to an account is possible. 5. Each worksheet may be printed before any numbers are inserted and used to solve the problem manually. 6. The last worksheet (labeled JE) contains three blank journal entry pages. These can be used to prepare eliminating journal entries for any or all of the homework problems. This sheet can be duplicated for each problem if needed. Problem 6-5 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation Sedbrook Company INCOME STATEMENT Sales Dividend Income Total revenue 1,210,000 31,500 1,241,500 636,000 Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense 165,000 935,000 1,100,000 220,000 880,000 198,000 1,078,000 132,000 420,000 552,000 144,000 408,000 165,000 573,000 163,500 63,000 163,500 63,000 Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation Sedbrook Company Net income from above Dividends declared: Pruitt Corporation Sedbrook Company 12/31 Retained Earnings to Balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Sedbrook Company Other assets Total assets Accounts Payable Other liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 636,000 598,400 163,500 144,000 63,000 (110,000) (35,000) 651,900 172,000 90,800 243,300 220,000 625,500 550,000 1,729,600 96,000 135,000 144,000 480,000 855,000 77,000 120,700 36,000 47,000 880,000 651,900 600,000 172,000 1,729,600 855,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 6-6 DEBITS Cash Accounts Receivable(net) Inventory 1/1 Investment in Sedbrook Company Other assets Dividends Declared Pruitt Corporation Sedbrook Company Purchases Other expenses Total Inventory 12/31 Total assets CREDITS Accounts Payable Other Liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings Pruitt Corporation Sedbrook Company Sales Dividend Income Totals Inventory 12/31 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statedments Workpaper For the Year Ended December 31, 2013 Pruitt Corporation 90,800 243,300 165,000 625,500 550,000 Dr. Eliminations Cr. Consolidated Income Statement Consolidated Retained Earnings Noncontrolling Interest 96,000 135,000 132,000 480,000 110,000 935,000 198,000 2,917,600 220,000 35,000 420,000 165,000 1,463,000 144,000 77,000 120,700 36,000 47,000 880,000 600,000 598,400 144,000 636,000 1,210,000 31,500 2,917,600 1,463,000 220,000 144,000 Net/Consolidated Income Noncontrolling Interest in Income Controlling Interest in Consolidated Net Income Consolidated Retained Earnings 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities and Equity Sedbrook Company - Consolidated Balances Problem 6-7 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Dividend Income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation Segal Company Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity Segal Company 1,650,000 54,000 1,704,000 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 103,500 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 103,500 71,250 795,000 811,500 180,000 103,500 71,250 (150,000) (60,000) 765,000 191,250 93,000 319,500 210,000 810,000 750,000 2,182,500 75,000 168,750 172,500 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 765,000## # 2,182,500 750,000 191,250 1,046,250 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 69 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Inventory, 1/1 Purchases Available for sale Inventory, 12/31 Cost of Goods Sold Other Expense Total Cost and Expense Net/Consolidated Income Noncontrolling Interest In Consolidated Income Net Income to Retained Earnings RETAINED EARNINGS STATEMENT 1/1 Retained Earnings: Perry Company PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2010 Perry Company 1,400,000 20,000 1,420,000 230,000 900,000 1,130,000 450,000 680,000 250,000 _______ 930,000 490,000 Eliminations Credit Noncontrolling Interest Consolidated Balances Credit Noncontrolling Interest Consolidated Balances 145,000 380,000 525,000 200,000 325,000 195,000 _______ 520,000 280,000 490,000 Debit 800,000 280,000 800,000 1,500,000 Selby Company Net Income from Above Dividends Declared Perry Company Selby Company 12/31/ Retained Earnings to Balance Sheet Selby Company 480,000 490,000 (50,000) 280,000 (25,000) 1,940,000 735,000 Perry BALANCE SHEET Company Cash $95,000 Accounts Receivable 302,000 Inventory 450,000 Investment in Selby Comp. 990,000 Difference between implied & book value Plant and Equipment 850,000 Selby Company $70,000 90,000 200,000 Other Assets Total Accounts Payable Other Liabilities Common stock Perry Company Selby Company Retained earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total 585,000 390,000 $3,077,000 230,000 $1,175,000 $75,000 102,000 $30,000 60,000 960,000 1,940,000 350,000 735,000 $3,077,000 $1,175,000 Debit Eliminations Problem 6-11 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 47,250 1,147,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 167,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 167,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 562,000 Sedbrook Company Net income from above 167,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to Balance Sheet 629,250 Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 120,000 52,500 (30,000) 142,500 Seadbrook Company 83,000 213,000 200,000 578,250 80,000 112,500 120,000 500,000 1,574,250 400,000 712,500 Accounts Payable 70,000 Other liabilities 75,000 Capital stock: Pruitt Corporation 800,000 Sedbrook Company Retained earnings from above 629,250 1/1 Noncontrolling interest in net assets 12/31 Noncontrolling interest Total liabilities & equity 1,574,250 30,000 40,000 Other assets Total assets Cr. 530,000 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. 500,000 142,500 712,500 Eliminations Dr. Problem 6-13 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 64,125 1,714,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 838,500 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 113,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 113,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 113,625 Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 71,250 (150,000) (60,000) 802,125 Paque Corporation BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 795,000 191,250 Segal Company 93,000 319,500 210,000 847,125 75,000 168,750 172,500 750,000 2,219,625 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 802,125 750,000 191,250 2,219,625 1,046,250 Eliminations Dr. Problem 6-14 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 208,000 1,593,000 Noncontrolling Consolidated Interest Balances Cr. Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 683,000 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 683,000 Eliminations Dr. 260,000 720,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,472,700 Selby Company 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 683,000 (40,000) (30,000) 2,115,700 Perry Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Other assets Total assets Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 680,000 Selby Company 90,000 297,000 400,000 1,184,000 65,000 85,000 225,000 880,000 540,000 384,000 3,235,000 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,115,700 400,000 680,000 3,235,000 1,145,000 Eliminations Dr. Problem 6-16 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 67,250 1,167,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 187,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 187,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 532,000 Sedbrook Company Net income from above 187,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to balance sheet 619,250 Other assets Total assets Accounts Payable Other liabilities Capital stock: Pruitt Corporation Sedbrook Company Retained earnings from above 1/1 Noncontrolling interest 12/31 Noncontrolling interest Total liabilities & equity Cr. Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 530,000 120,000 52,500 (30,000) 142,500 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. Sedbrook Company 83,000 213,000 200,000 568,250 80,000 112,500 120,000 500,000 1,564,250 400,000 712,500 70,000 75,000 30,000 40,000 800,000 619,250 500,000 142,500 1,564,250 712,500 Eliminations Dr. Problem 6-17 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 91,125 1,741,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 798,000 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 140,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 140,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 140,625 795,000 71,250 (150,000) (60,000) 788,625 Paque Corporation 191,250 Segal Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 93,000 319,500 210,000 833,625 75,000 168,750 172,500 Other assets 750,000 630,000 2,206,125 1,046,250 Accounts Payable 105,000 Other liabilities 112,500 Capital Stock: Paque Corporation 1,200,000 Segal Company Retained Earnings from above 788,625 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity 2,206,125 45,000 60,000 Total assets 750,000 191,250 1,046,250 Eliminations Dr. Problem 6-18 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 153,600 1,538,600 Cr. Noncontrolling Consolidated Interest Balances 260,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,419,500 Selby Company Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 628,600 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 628,600 Eliminations Dr. 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 628,600 (30,000) 2,008,100 BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 (40,000) Perry Company Other assets Total assets 720,000 680,000 Selby Company 90,000 297,000 400,000 1,076,400 65,000 85,000 225,000 880,000 540,000 384,000 3,127,400 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,008,100 400,000 680,000 3,127,400 1,145,000 Eliminations Dr. Problem 6 - 20A PECK CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Peck Corporation 1,100,000 7,000 1,107,000 Seacrest Company 530,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balances Noncontrolling Interest Consolidated Balances 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 40,000 114,000 487,250 42,750 40,000 42,750 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Peck Corporation 541,000 Seacrest Company Net Income from Above Dividends Declared: Peck Corporation Seacrest Company 12/31 Retained Earnings to 120,000 40,000 (100,000) (10,000) 481,000 Peck Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Seacrest Company Deferred Tax Assets Other Assets Total Assets 42,750 152,750 Seacrest Company 35,000 211,000 140,000 420,000 100,000 107,750 115,000 500,000 1,306,000 400,000 722,750 Accounts Payable 70,000 Other Liabilities 55,000 Deferred Income Tax Liability 20,000 Capital Stock Peck Corporation 680,000 Seacrest Company Retained Earnings from Above 481,000 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Liabilities & Equity 1,306,000 30,000 35,000 5,000 500,000 152,750 722,750 Eliminations Dr. Cr. Problem 6 - 21A PETRA CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 Petra Corporation INCOME STATEMENT Sales Equity in Subsidiary Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Swain Company 1,100,000 29,925 1,129,925 Noncontrolling Interest Consolidated Balances 114,000 487,250 42,750 62,925 Consolidated Balances 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 62,925 Noncontrolling Interest 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 Eliminations 42,750 Dr. Cr. 530,000 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Petra Corporation 555,000 Swain Company Net Income from Above Dividends Declared: Petra Corporation Swain Company 12/31/ Retained Earnings to Balance Sheet 120,000 62,925 42,750 (100,000) (10,000) Deferred tax asset Other Assets Total Assets Accounts Payable Other Liabilities Deferred Income Tax Liability Capital Stock Petra Corporation Swain Company Retained Earnings from Above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities & Equity 152,750 Petra Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Swain Company 517,925 Swain Company 35,000 211,000 140,000 456,925 100,000 107,750 115,000 500,000 1,342,925 400,000 722,750 70,000 55,000 20,000 30,000 35,000 5,000 680,000 517,925 500,000 152,750 1,342,925 722,750 Eliminations Dr. Cr. Problem: Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit 14 Chapter 6 Introduction to this program This worksheet contains spreadsheets that complete the consolidated worksheet after the student inputs the eliminating journal entries on the consolidated worksheet. 1. To activate the process, a debit must be entered into the debit elimination entry column. 2. There is a separate column, in which to enter the number or letter to key the entry (e.g. (1) or (a)). 3. In some cases, balance sheet accounts may need to be added. The first cell in the row to enter the accounts will be shaded. 4. If two rows in the elimination columns contain brackets (i.e. [ or { ), this means that two rows can be used for the same account. In other words, more than one debit to an account is possible. 5. Each worksheet may be printed before any numbers are inserted and used to solve the problem manually. 6. The last worksheet (labeled JE) contains three blank journal entry pages. These can be used to prepare eliminating journal entries for any or all of the homework problems. This sheet can be duplicated for each problem if needed. Problem 6-5 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation Sedbrook Company INCOME STATEMENT Sales Dividend Income Total revenue 1,210,000 31,500 1,241,500 636,000 Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense 165,000 935,000 1,100,000 220,000 880,000 198,000 1,078,000 132,000 420,000 552,000 144,000 408,000 165,000 573,000 163,500 63,000 163,500 63,000 Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation Sedbrook Company Net income from above Dividends declared: Pruitt Corporation Sedbrook Company 12/31 Retained Earnings to Balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Sedbrook Company Other assets Total assets Accounts Payable Other liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 636,000 598,400 163,500 144,000 63,000 (110,000) (35,000) 651,900 172,000 90,800 243,300 220,000 625,500 550,000 1,729,600 96,000 135,000 144,000 480,000 855,000 77,000 120,700 36,000 47,000 880,000 651,900 600,000 172,000 1,729,600 855,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 6-6 DEBITS Cash Accounts Receivable(net) Inventory 1/1 Investment in Sedbrook Company Other assets Dividends Declared Pruitt Corporation Sedbrook Company Purchases Other expenses Total Inventory 12/31 Total assets CREDITS Accounts Payable Other Liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings Pruitt Corporation Sedbrook Company Sales Dividend Income Totals Inventory 12/31 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statedments Workpaper For the Year Ended December 31, 2013 Pruitt Corporation 90,800 243,300 165,000 625,500 550,000 Dr. Eliminations Cr. Consolidated Income Statement Consolidated Retained Earnings Noncontrolling Interest 96,000 135,000 132,000 480,000 110,000 935,000 198,000 2,917,600 220,000 35,000 420,000 165,000 1,463,000 144,000 77,000 120,700 36,000 47,000 880,000 600,000 598,400 144,000 636,000 1,210,000 31,500 2,917,600 1,463,000 220,000 144,000 Net/Consolidated Income Noncontrolling Interest in Income Controlling Interest in Consolidated Net Income Consolidated Retained Earnings 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities and Equity Sedbrook Company - Consolidated Balances Problem 6-7 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Dividend Income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation Segal Company Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity Segal Company 1,650,000 54,000 1,704,000 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 103,500 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 103,500 71,250 795,000 811,500 180,000 103,500 71,250 (150,000) (60,000) 765,000 191,250 93,000 319,500 210,000 810,000 750,000 2,182,500 75,000 168,750 172,500 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 765,000## # 2,182,500 750,000 191,250 1,046,250 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 69 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Inventory, 1/1 Purchases Available for sale Inventory, 12/31 Cost of Goods Sold Other Expense Total Cost and Expense Net/Consolidated Income Noncontrolling Interest In Consolidated Income Net Income to Retained Earnings RETAINED EARNINGS STATEMENT 1/1 Retained Earnings: Perry Company PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2010 Perry Company 1,400,000 20,000 1,420,000 230,000 900,000 1,130,000 450,000 680,000 250,000 _______ 930,000 490,000 Eliminations Credit Noncontrolling Interest Consolidated Balances Credit Noncontrolling Interest Consolidated Balances 145,000 380,000 525,000 200,000 325,000 195,000 _______ 520,000 280,000 490,000 Debit 800,000 280,000 800,000 1,500,000 Selby Company Net Income from Above Dividends Declared Perry Company Selby Company 12/31/ Retained Earnings to Balance Sheet Selby Company 480,000 490,000 (50,000) 280,000 (25,000) 1,940,000 735,000 Perry BALANCE SHEET Company Cash $95,000 Accounts Receivable 302,000 Inventory 450,000 Investment in Selby Comp. 990,000 Difference between implied & book value Plant and Equipment 850,000 Selby Company $70,000 90,000 200,000 Other Assets Total Accounts Payable Other Liabilities Common stock Perry Company Selby Company Retained earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total 585,000 390,000 $3,077,000 230,000 $1,175,000 $75,000 102,000 $30,000 60,000 960,000 1,940,000 350,000 735,000 $3,077,000 $1,175,000 Debit Eliminations Problem 6-11 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 47,250 1,147,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 167,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 167,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 562,000 Sedbrook Company Net income from above 167,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to Balance Sheet 629,250 Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 120,000 52,500 (30,000) 142,500 Seadbrook Company 83,000 213,000 200,000 578,250 80,000 112,500 120,000 500,000 1,574,250 400,000 712,500 Accounts Payable 70,000 Other liabilities 75,000 Capital stock: Pruitt Corporation 800,000 Sedbrook Company Retained earnings from above 629,250 1/1 Noncontrolling interest in net assets 12/31 Noncontrolling interest Total liabilities & equity 1,574,250 30,000 40,000 Other assets Total assets Cr. 530,000 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. 500,000 142,500 712,500 Eliminations Dr. Problem 6-13 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 64,125 1,714,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 838,500 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 113,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 113,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 113,625 Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 71,250 (150,000) (60,000) 802,125 Paque Corporation BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 795,000 191,250 Segal Company 93,000 319,500 210,000 847,125 75,000 168,750 172,500 750,000 2,219,625 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 802,125 750,000 191,250 2,219,625 1,046,250 Eliminations Dr. Problem 6-14 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 208,000 1,593,000 Noncontrolling Consolidated Interest Balances Cr. Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 683,000 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 683,000 Eliminations Dr. 260,000 720,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,472,700 Selby Company 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 683,000 (40,000) (30,000) 2,115,700 Perry Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Other assets Total assets Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 680,000 Selby Company 90,000 297,000 400,000 1,184,000 65,000 85,000 225,000 880,000 540,000 384,000 3,235,000 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,115,700 400,000 680,000 3,235,000 1,145,000 Eliminations Dr. Problem 6-16 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 67,250 1,167,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 187,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 187,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 532,000 Sedbrook Company Net income from above 187,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to balance sheet 619,250 Other assets Total assets Accounts Payable Other liabilities Capital stock: Pruitt Corporation Sedbrook Company Retained earnings from above 1/1 Noncontrolling interest 12/31 Noncontrolling interest Total liabilities & equity Cr. Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 530,000 120,000 52,500 (30,000) 142,500 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. Sedbrook Company 83,000 213,000 200,000 568,250 80,000 112,500 120,000 500,000 1,564,250 400,000 712,500 70,000 75,000 30,000 40,000 800,000 619,250 500,000 142,500 1,564,250 712,500 Eliminations Dr. Problem 6-17 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 91,125 1,741,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 798,000 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 140,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 140,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 140,625 795,000 71,250 (150,000) (60,000) 788,625 Paque Corporation 191,250 Segal Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 93,000 319,500 210,000 833,625 75,000 168,750 172,500 Other assets 750,000 630,000 2,206,125 1,046,250 Accounts Payable 105,000 Other liabilities 112,500 Capital Stock: Paque Corporation 1,200,000 Segal Company Retained Earnings from above 788,625 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity 2,206,125 45,000 60,000 Total assets 750,000 191,250 1,046,250 Eliminations Dr. Problem 6-18 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 153,600 1,538,600 Cr. Noncontrolling Consolidated Interest Balances 260,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,419,500 Selby Company Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 628,600 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 628,600 Eliminations Dr. 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 628,600 (30,000) 2,008,100 BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 (40,000) Perry Company Other assets Total assets 720,000 680,000 Selby Company 90,000 297,000 400,000 1,076,400 65,000 85,000 225,000 880,000 540,000 384,000 3,127,400 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,008,100 400,000 680,000 3,127,400 1,145,000 Eliminations Dr. Problem 6 - 20A PECK CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Peck Corporation 1,100,000 7,000 1,107,000 Seacrest Company 530,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balances Noncontrolling Interest Consolidated Balances 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 40,000 114,000 487,250 42,750 40,000 42,750 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Peck Corporation 541,000 Seacrest Company Net Income from Above Dividends Declared: Peck Corporation Seacrest Company 12/31 Retained Earnings to 120,000 40,000 (100,000) (10,000) 481,000 Peck Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Seacrest Company Deferred Tax Assets Other Assets Total Assets 42,750 152,750 Seacrest Company 35,000 211,000 140,000 420,000 100,000 107,750 115,000 500,000 1,306,000 400,000 722,750 Accounts Payable 70,000 Other Liabilities 55,000 Deferred Income Tax Liability 20,000 Capital Stock Peck Corporation 680,000 Seacrest Company Retained Earnings from Above 481,000 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Liabilities & Equity 1,306,000 30,000 35,000 5,000 500,000 152,750 722,750 Eliminations Dr. Cr. Problem 6 - 21A PETRA CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 Petra Corporation INCOME STATEMENT Sales Equity in Subsidiary Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Swain Company 1,100,000 29,925 1,129,925 Noncontrolling Interest Consolidated Balances 114,000 487,250 42,750 62,925 Consolidated Balances 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 62,925 Noncontrolling Interest 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 Eliminations 42,750 Dr. Cr. 530,000 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Petra Corporation 555,000 Swain Company Net Income from Above Dividends Declared: Petra Corporation Swain Company 12/31/ Retained Earnings to Balance Sheet 120,000 62,925 42,750 (100,000) (10,000) Deferred tax asset Other Assets Total Assets Accounts Payable Other Liabilities Deferred Income Tax Liability Capital Stock Petra Corporation Swain Company Retained Earnings from Above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities & Equity 152,750 Petra Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Swain Company 517,925 Swain Company 35,000 211,000 140,000 456,925 100,000 107,750 115,000 500,000 1,342,925 400,000 722,750 70,000 55,000 20,000 30,000 35,000 5,000 680,000 517,925 500,000 152,750 1,342,925 722,750 Eliminations Dr. Cr. Problem: Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit 14 Chapter 6 Introduction to this program This worksheet contains spreadsheets that complete the consolidated worksheet after the student inputs the eliminating journal entries on the consolidated worksheet. 1. To activate the process, a debit must be entered into the debit elimination entry column. 2. There is a separate column, in which to enter the number or letter to key the entry (e.g. (1) or (a)). 3. In some cases, balance sheet accounts may need to be added. The first cell in the row to enter the accounts will be shaded. 4. If two rows in the elimination columns contain brackets (i.e. [ or { ), this means that two rows can be used for the same account. In other words, more than one debit to an account is possible. 5. Each worksheet may be printed before any numbers are inserted and used to solve the problem manually. 6. The last worksheet (labeled JE) contains three blank journal entry pages. These can be used to prepare eliminating journal entries for any or all of the homework problems. This sheet can be duplicated for each problem if needed. Problem 6-5 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation Sedbrook Company INCOME STATEMENT Sales Dividend Income Total revenue 1,210,000 31,500 1,241,500 636,000 Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense 165,000 935,000 1,100,000 220,000 880,000 198,000 1,078,000 132,000 420,000 552,000 144,000 408,000 165,000 573,000 163,500 63,000 163,500 63,000 Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation Sedbrook Company Net income from above Dividends declared: Pruitt Corporation Sedbrook Company 12/31 Retained Earnings to Balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Sedbrook Company Other assets Total assets Accounts Payable Other liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 636,000 598,400 163,500 144,000 63,000 (110,000) (35,000) 651,900 172,000 90,800 243,300 220,000 625,500 550,000 1,729,600 96,000 135,000 144,000 480,000 855,000 77,000 120,700 36,000 47,000 880,000 651,900 600,000 172,000 1,729,600 855,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 6-6 DEBITS Cash Accounts Receivable(net) Inventory 1/1 Investment in Sedbrook Company Other assets Dividends Declared Pruitt Corporation Sedbrook Company Purchases Other expenses Total Inventory 12/31 Total assets CREDITS Accounts Payable Other Liabilities Common Stock: Pruitt Corporation Sedbrook Company Retained Earnings Pruitt Corporation Sedbrook Company Sales Dividend Income Totals Inventory 12/31 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statedments Workpaper For the Year Ended December 31, 2013 Pruitt Corporation 90,800 243,300 165,000 625,500 550,000 Dr. Eliminations Cr. Consolidated Income Statement Consolidated Retained Earnings Noncontrolling Interest 96,000 135,000 132,000 480,000 110,000 935,000 198,000 2,917,600 220,000 35,000 420,000 165,000 1,463,000 144,000 77,000 120,700 36,000 47,000 880,000 600,000 598,400 144,000 636,000 1,210,000 31,500 2,917,600 1,463,000 220,000 144,000 Net/Consolidated Income Noncontrolling Interest in Income Controlling Interest in Consolidated Net Income Consolidated Retained Earnings 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities and Equity Sedbrook Company - Consolidated Balances Problem 6-7 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Dividend Income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation Segal Company Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity Segal Company 1,650,000 54,000 1,704,000 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 103,500 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 103,500 71,250 795,000 811,500 180,000 103,500 71,250 (150,000) (60,000) 765,000 191,250 93,000 319,500 210,000 810,000 750,000 2,182,500 75,000 168,750 172,500 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 765,000## # 2,182,500 750,000 191,250 1,046,250 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balance Problem 69 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Inventory, 1/1 Purchases Available for sale Inventory, 12/31 Cost of Goods Sold Other Expense Total Cost and Expense Net/Consolidated Income Noncontrolling Interest In Consolidated Income Net Income to Retained Earnings RETAINED EARNINGS STATEMENT 1/1 Retained Earnings: Perry Company PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2010 Perry Company 1,400,000 20,000 1,420,000 230,000 900,000 1,130,000 450,000 680,000 250,000 _______ 930,000 490,000 Eliminations Credit Noncontrolling Interest Consolidated Balances Credit Noncontrolling Interest Consolidated Balances 145,000 380,000 525,000 200,000 325,000 195,000 _______ 520,000 280,000 490,000 Debit 800,000 280,000 800,000 1,500,000 Selby Company Net Income from Above Dividends Declared Perry Company Selby Company 12/31/ Retained Earnings to Balance Sheet Selby Company 480,000 490,000 (50,000) 280,000 (25,000) 1,940,000 735,000 Perry BALANCE SHEET Company Cash $95,000 Accounts Receivable 302,000 Inventory 450,000 Investment in Selby Comp. 990,000 Difference between implied & book value Plant and Equipment 850,000 Selby Company $70,000 90,000 200,000 Other Assets Total Accounts Payable Other Liabilities Common stock Perry Company Selby Company Retained earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total 585,000 390,000 $3,077,000 230,000 $1,175,000 $75,000 102,000 $30,000 60,000 960,000 1,940,000 350,000 735,000 $3,077,000 $1,175,000 Debit Eliminations Problem 6-11 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 47,250 1,147,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 167,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 167,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 562,000 Sedbrook Company Net income from above 167,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to Balance Sheet 629,250 Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 120,000 52,500 (30,000) 142,500 Seadbrook Company 83,000 213,000 200,000 578,250 80,000 112,500 120,000 500,000 1,574,250 400,000 712,500 Accounts Payable 70,000 Other liabilities 75,000 Capital stock: Pruitt Corporation 800,000 Sedbrook Company Retained earnings from above 629,250 1/1 Noncontrolling interest in net assets 12/31 Noncontrolling interest Total liabilities & equity 1,574,250 30,000 40,000 Other assets Total assets Cr. 530,000 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. 500,000 142,500 712,500 Eliminations Dr. Problem 6-13 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 64,125 1,714,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 838,500 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 113,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 113,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 113,625 Other assets Total assets Accounts Payable Other liabilities Capital Stock: Paque Corporation Segal Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 71,250 (150,000) (60,000) 802,125 Paque Corporation BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 795,000 191,250 Segal Company 93,000 319,500 210,000 847,125 75,000 168,750 172,500 750,000 2,219,625 630,000 1,046,250 105,000 112,500 45,000 60,000 1,200,000 802,125 750,000 191,250 2,219,625 1,046,250 Eliminations Dr. Problem 6-14 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 208,000 1,593,000 Noncontrolling Consolidated Interest Balances Cr. Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 683,000 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 683,000 Eliminations Dr. 260,000 720,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,472,700 Selby Company 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 683,000 (40,000) (30,000) 2,115,700 Perry Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Other assets Total assets Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 680,000 Selby Company 90,000 297,000 400,000 1,184,000 65,000 85,000 225,000 880,000 540,000 384,000 3,235,000 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,115,700 400,000 680,000 3,235,000 1,145,000 Eliminations Dr. Problem 6-16 PRUITT CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Pruitt Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Sedbrook Company 1,100,000 67,250 1,167,250 530,000 150,000 850,000 1,000,000 200,000 800,000 180,000 980,000 187,250 110,000 350,000 460,000 120,000 340,000 137,500 477,500 52,500 187,250 52,500 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Pruitt Corporation 532,000 Sedbrook Company Net income from above 187,250 Dividends declared: Pruitt Corporation (100,000) Sedbrook Company 12/31Retained Earnings to balance sheet 619,250 Other assets Total assets Accounts Payable Other liabilities Capital stock: Pruitt Corporation Sedbrook Company Retained earnings from above 1/1 Noncontrolling interest 12/31 Noncontrolling interest Total liabilities & equity Cr. Noncontrolling Interest Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 530,000 120,000 52,500 (30,000) 142,500 Pruitt Corporation BALANCE SHEET Cash Accounts receivable Inventory Investment in Sedbrook Company Eliminations Dr. Sedbrook Company 83,000 213,000 200,000 568,250 80,000 112,500 120,000 500,000 1,564,250 400,000 712,500 70,000 75,000 30,000 40,000 800,000 619,250 500,000 142,500 1,564,250 712,500 Eliminations Dr. Problem 6-17 PAQUE CORPORATION AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2013 Paque Corporation INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Segal Company 1,650,000 91,125 1,741,125 Consolidated Balances Cr. Noncontrolling Interest Consolidated Balances 71,250 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Paque Corporation 798,000 Segal Company Noncontrolling Interest 165,000 525,000 690,000 172,500 517,500 206,250 723,750 71,250 140,625 Cr. 795,000 225,000 1,275,000 1,500,000 210,000 1,290,000 310,500 1,600,500 140,625 Eliminations Dr. 180,000 Net income from above Dividends declared: Paque Corporation Segal Company 12/31Retained Earnings to balance sheet 140,625 795,000 71,250 (150,000) (60,000) 788,625 Paque Corporation 191,250 Segal Company BALANCE SHEET Cash Accounts Receivable Inventory Investment in Segal Company 93,000 319,500 210,000 833,625 75,000 168,750 172,500 Other assets 750,000 630,000 2,206,125 1,046,250 Accounts Payable 105,000 Other liabilities 112,500 Capital Stock: Paque Corporation 1,200,000 Segal Company Retained Earnings from above 788,625 1/1 Noncontrolling Interest in net assets 12/31 Noncontrolling Interest in net assets Total liabilities & equity 2,206,125 45,000 60,000 Total assets 750,000 191,250 1,046,250 Eliminations Dr. Problem 6-18 PERRY COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2011 Perry Company INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense Net/Consolidated income Noncontrolling Interest in income Net income to retained earnings Selby Company 1,385,000 153,600 1,538,600 Cr. Noncontrolling Consolidated Interest Balances 260,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company 1,419,500 Selby Company Noncontrolling Consolidated Interest Balances 155,000 360,000 515,000 225,000 290,000 170,000 460,000 260,000 628,600 Cr. 720,000 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 628,600 Eliminations Dr. 450,000 Net income from above Dividends declared: Perry Company Selby Company 12/31Retained Earnings to balance sheet 628,600 (30,000) 2,008,100 BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company Difference between implied & book value Plant and equipment Accounts Payable Other liabilities Capital Stock: Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total liabilities & equity 260,000 (40,000) Perry Company Other assets Total assets 720,000 680,000 Selby Company 90,000 297,000 400,000 1,076,400 65,000 85,000 225,000 880,000 540,000 384,000 3,127,400 230,000 1,145,000 24,300 95,000 25,000 40,000 1,000,000 2,008,100 400,000 680,000 3,127,400 1,145,000 Eliminations Dr. Problem 6 - 20A PECK CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 INCOME STATEMENT Sales Dividend Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Peck Corporation 1,100,000 7,000 1,107,000 Seacrest Company 530,000 Eliminations Dr. Cr. Noncontrolling Interest Consolidated Balances Noncontrolling Interest Consolidated Balances 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 40,000 114,000 487,250 42,750 40,000 42,750 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Peck Corporation 541,000 Seacrest Company Net Income from Above Dividends Declared: Peck Corporation Seacrest Company 12/31 Retained Earnings to 120,000 40,000 (100,000) (10,000) 481,000 Peck Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Seacrest Company Deferred Tax Assets Other Assets Total Assets 42,750 152,750 Seacrest Company 35,000 211,000 140,000 420,000 100,000 107,750 115,000 500,000 1,306,000 400,000 722,750 Accounts Payable 70,000 Other Liabilities 55,000 Deferred Income Tax Liability 20,000 Capital Stock Peck Corporation 680,000 Seacrest Company Retained Earnings from Above 481,000 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Liabilities & Equity 1,306,000 30,000 35,000 5,000 500,000 152,750 722,750 Eliminations Dr. Cr. Problem 6 - 21A PETRA CORPORATION AND SUBSIDIARY Consolidated Statements Workpaper For the Year Ended December 31, 2011 Petra Corporation INCOME STATEMENT Sales Equity in Subsidiary Income Total Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available Less Ending Inventory Cost of Goods Sold: Income Tax Expense Other Expenses Total Cost and Expense Net /Consolidated Income Noncontrolling Interest in Income Net Income to Retained Earnings Swain Company 1,100,000 29,925 1,129,925 Noncontrolling Interest Consolidated Balances 114,000 487,250 42,750 62,925 Consolidated Balances 110,000 350,000 460,000 115,000 345,000 28,250 180,000 1,067,000 62,925 Noncontrolling Interest 530,000 150,000 850,000 1,000,000 140,000 860,000 27,000 Eliminations 42,750 Dr. Cr. 530,000 STATEMENT OF RETAINED EARNINGS 1/1 Retained Earnings: Petra Corporation 555,000 Swain Company Net Income from Above Dividends Declared: Petra Corporation Swain Company 12/31/ Retained Earnings to Balance Sheet 120,000 62,925 42,750 (100,000) (10,000) Deferred tax asset Other Assets Total Assets Accounts Payable Other Liabilities Deferred Income Tax Liability Capital Stock Petra Corporation Swain Company Retained Earnings from Above 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest Total Liabilities & Equity 152,750 Petra Corporation BALANCE SHEET Cash Accounts Receivable ( net ) Inventory Investment in Swain Company 517,925 Swain Company 35,000 211,000 140,000 456,925 100,000 107,750 115,000 500,000 1,342,925 400,000 722,750 70,000 55,000 20,000 30,000 35,000 5,000 680,000 517,925 500,000 152,750 1,342,925 722,750 Eliminations Dr. Cr. Problem: Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit Entry Number Accounts Used Debit Credit 14
