a. What amount of cost of goods sold will be reported in the 20X9 consolidated income statement? b. What inventory balance will be reported in the December 31, 20X9, consolidated balance sheet? c. What amount of income will be assigned to noncontrolling shareholders in the 20X9 consolidated income statement? d. What amount will be assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X9? e. What amount of retained earnings will be reported in the consolidated balance sheet at December 31, 20X9?

RECORD CONSOLIDATION WORKSHEET ENTRIES

(1) Record the basic consolidation entry.

(2) Record the entry to reverse last year's deferral.

(3) Record the deferral of this year's unrealized profits on inventory transfers.

Song Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Polka Company purchased 90 percent of Song's common stock at underlying book value. At that date, the fair value of the noncontrolling Interest was equal to 10 percent of Song's book value. Trial balances for Polka and Song on December 31, 20X9, are as follows: Item Cash Accounts Receivable Other Receivables Inventory Land Buildings & Equipment Investment in Song Corporation Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Other Payables Bonds Payable Bond Premium Common Stock Additional Paid-in Capital Retained Earnings Sales Other Income Income from Song Corporation Total 20x9 Trial Balance Data Polka Company Song Corporation Debit Credit Debit Credit $ 187,000 $ 57,400 80,000 90,000 40,000 10,000 137,000 130,000 80,000 60,000 500,000 250,000 234,900 593,000 270,000 45,000 15,000 95,000 75,000 40,000 20,000 $ 155,000 $ 75,000 63,000 35,000 95,000 20,000 250,000 200,000 2,400 210,000 50,000 110,000 235,000 165,000 815,000 415,000 26,000 15,000 72,900 $2,031,900 $2,031,900 $977,400 $977,400 During 20X9, Song produced Inventory for $20,000 and sold it to Polka for $30,000. Polka resold 60 percent of the inventory in 20X9. Also in 20X9, Polka sold inventory purchased from Song in 20X8. It had cost Song $60,000 to produce the inventory, and Polka purchased it for $75,000. Assume Polka uses the fully adjusted equity method. g. Prepare a three-part consolidation worksheet at December 31, 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all deblt entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) SONG COMPANY & SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X9 Consolidation Entries Polka Co. Song Corp. DR CR Consolidated Income Statement Sales 0 0 0 0 0 0 Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Income from Song Corporation Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet $ 0 $ 0 $ 0 $ 0 $ 0 $ 0$ 0 $ 0 $ 0 $ 0 Cash Accounts Receivable Other Receivables Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Song Corporation Total Assets $ 0 $ 0 5 0 0 $ 0 $ 0 Accounts Payable Other Payables Bonds Payable Bonds Premium Common Stock Additional Paid-in Capital Retained Earnings NCI in NA of Song Corporation Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0 Song Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Polka Company purchased 90 percent of Song's common stock at underlying book value. At that date, the fair value of the noncontrolling Interest was equal to 10 percent of Song's book value. Trial balances for Polka and Song on December 31, 20X9, are as follows: Item Cash Accounts Receivable Other Receivables Inventory Land Buildings & Equipment Investment in Song Corporation Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Other Payables Bonds Payable Bond Premium Common Stock Additional Paid-in Capital Retained Earnings Sales Other Income Income from Song Corporation Total 20x9 Trial Balance Data Polka Company Song Corporation Debit Credit Debit Credit $ 187,000 $ 57,400 80,000 90,000 40,000 10,000 137,000 130,000 80,000 60,000 500,000 250,000 234,900 593,000 270,000 45,000 15,000 95,000 75,000 40,000 20,000 $ 155,000 $ 75,000 63,000 35,000 95,000 20,000 250,000 200,000 2,400 210,000 50,000 110,000 235,000 165,000 815,000 415,000 26,000 15,000 72,900 $2,031,900 $2,031,900 $977,400 $977,400 During 20X9, Song produced Inventory for $20,000 and sold it to Polka for $30,000. Polka resold 60 percent of the inventory in 20X9. Also in 20X9, Polka sold inventory purchased from Song in 20X8. It had cost Song $60,000 to produce the inventory, and Polka purchased it for $75,000. Assume Polka uses the fully adjusted equity method. g. Prepare a three-part consolidation worksheet at December 31, 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all deblt entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) SONG COMPANY & SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X9 Consolidation Entries Polka Co. Song Corp. DR CR Consolidated Income Statement Sales 0 0 0 0 0 0 Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Income from Song Corporation Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet $ 0 $ 0 $ 0 $ 0 $ 0 $ 0$ 0 $ 0 $ 0 $ 0 Cash Accounts Receivable Other Receivables Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Song Corporation Total Assets $ 0 $ 0 5 0 0 $ 0 $ 0 Accounts Payable Other Payables Bonds Payable Bonds Premium Common Stock Additional Paid-in Capital Retained Earnings NCI in NA of Song Corporation Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0