Assignment 3 Olson Corporation paid $62,000 to acquire all of Towing Corporation's outstanding voting common stock at book value on May 1, 2011. The stockholders' equity of Towing on January 1, 2011 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2011 were $6,000, paid equally on April 1 and October 1. Towing's net income was earned uniformly throughout 2011. In 2011. pre-acquisition sales were $10,000 and pre-acquisition expenses were cost of sales for $5,000. (There were no other pre-acquisition expenses in 2011.) During 2011, Olson made sales of $10,000 to Towing at a gross profit of $3,000. One-half of this merchandise was inventoried by Towing at year-end, and one-half of the 2011 intercompany sales were unpaid at year-end 2011.Olson sold equipment with a ten-year remaining useful life to Towing at a $2,000 gain on December 31, 2011. The straight-line depreciation method is used by both companies. The equipment has no salvage value. Financial statements of Olson and Towing Corporations for 2011 appear in the first two columns of the partially completed consolidation working papers. Required: Compute all missing and required information, then complete the consolidating working papers for Olson Corporation and Subsidiary for the year ending December 31, 2011, Olon Towing INCOME STATEMENT Sales In the f Love Ing 30,000 $40.000 Kain on sale of equipment Cester Sales and experies Depreciation experie Net Income Retained Earnings 1/1 Mat Net income Less: Dividends Retained Earnings 12/31 152.000000 11.000 4.000 25.000 15.000 20.000 25.00 15.000 10.000 75.000 29.000 BALANCE SHEET Reenivables - 19.00 16.000 inventories 20.500 22.000 Build-net 25.000 20.00 Equipment 20.000 22.000 investment in Towing TOTAL ASSETS $170.00 S 80.000 TOTAL ASSETS 100 payable 35,000 11.00 0.000 DO Retained Farming 75.000 29.000 1231 Non-control Interest TOTAL LLAR & EQUITY 170.000 S 80.000 Assignment 3 Olson Corporation paid $62,000 to acquire all of Towing Corporation's outstanding voting common stock at book value on May 1, 2011. The stockholders' equity of Towing on January 1, 2011 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2011 were $6,000, paid equally on April 1 and October 1. Towing's net income was earned uniformly throughout 2011. In 2011, pre-acquisition sales were $10,000 and pre-acquisition expenses were cost of sales for $5,000. (There were no other pre-acquisition expenses in 2011.) During 2011, Olson made sales of $10,000 to Towing at a gross profit of $3,000. One-half of this merchandise was inventoried by Towing at year-end, and one-half of the 2011 intercompany sales were unpaid at year-end 2011.Olson sold equipment with a ten-year remaining useful life to Towing at a $2,000 gain on December 31, 2011. The straight-line depreciation method is used by both companies. The equipment has no salvage value. Financial statements of Olson and Towing Corporations for 2011 appear in the first two columns of the partially completed consolidation working papers. Required: Compute all missing and required information, then complete the consolidating working papers for Olson Corporation and Subsidiary for the year ending December 31, 2011, Olon Towing INCOME STATEMENT Sales In the f Tera 1mg 30,000 $40.000 Kain on sale of gent Cost of Sales and expenses Depreciation expertise Net Income Retained Earnings 1/1 Mat Netin.com Less: Dividends Retained Earnings 12/31 15320021 1.000 4.000 25.000 15.000 60.000 20.000 25.000 15.000 10.000.00 75.000 29.000 BALANCE SHEET Receivables.net 19. 16.000 imentaries 20.500 22.000 Buildings.net 25.000 2000 Equipment 40,00 22.000 Investment in Towing TOTAL ASSETS $170.000 S 80.000 TOTAL ASSETS 100 As payable $5.000 11.000 Ka Suck 0,000 Retained Farming 75.00 20.00 1231 Non-control Interest TOTAL LIAR A EQUITY 170.000 50.000 Assignment 3 Olson Corporation paid $62,000 to acquire all of Towing Corporation's outstanding voting common stock at book value on May 1, 2011. The stockholders' equity of Towing on January 1, 2011 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2011 were $6,000, paid equally on April 1 and October 1. Towing's net income was earned uniformly throughout 2011. In 2011. pre-acquisition sales were $10,000 and pre-acquisition expenses were cost of sales for $5,000. (There were no other pre-acquisition expenses in 2011.) During 2011, Olson made sales of $10,000 to Towing at a gross profit of $3,000. One-half of this merchandise was inventoried by Towing at year-end, and one-half of the 2011 intercompany sales were unpaid at year-end 2011.Olson sold equipment with a ten-year remaining useful life to Towing at a $2,000 gain on December 31, 2011. The straight-line depreciation method is used by both companies. The equipment has no salvage value. Financial statements of Olson and Towing Corporations for 2011 appear in the first two columns of the partially completed consolidation working papers. Required: Compute all missing and required information, then complete the consolidating working papers for Olson Corporation and Subsidiary for the year ending December 31, 2011, Olon Towing INCOME STATEMENT Sales In the f Love Ing 30,000 $40.000 Kain on sale of equipment Cester Sales and experies Depreciation experie Net Income Retained Earnings 1/1 Mat Net income Less: Dividends Retained Earnings 12/31 152.000000 11.000 4.000 25.000 15.000 20.000 25.00 15.000 10.000 75.000 29.000 BALANCE SHEET Reenivables - 19.00 16.000 inventories 20.500 22.000 Build-net 25.000 20.00 Equipment 20.000 22.000 investment in Towing TOTAL ASSETS $170.00 S 80.000 TOTAL ASSETS 100 payable 35,000 11.00 0.000 DO Retained Farming 75.000 29.000 1231 Non-control Interest TOTAL LLAR & EQUITY 170.000 S 80.000 Assignment 3 Olson Corporation paid $62,000 to acquire all of Towing Corporation's outstanding voting common stock at book value on May 1, 2011. The stockholders' equity of Towing on January 1, 2011 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2011 were $6,000, paid equally on April 1 and October 1. Towing's net income was earned uniformly throughout 2011. In 2011, pre-acquisition sales were $10,000 and pre-acquisition expenses were cost of sales for $5,000. (There were no other pre-acquisition expenses in 2011.) During 2011, Olson made sales of $10,000 to Towing at a gross profit of $3,000. One-half of this merchandise was inventoried by Towing at year-end, and one-half of the 2011 intercompany sales were unpaid at year-end 2011.Olson sold equipment with a ten-year remaining useful life to Towing at a $2,000 gain on December 31, 2011. The straight-line depreciation method is used by both companies. The equipment has no salvage value. Financial statements of Olson and Towing Corporations for 2011 appear in the first two columns of the partially completed consolidation working papers. Required: Compute all missing and required information, then complete the consolidating working papers for Olson Corporation and Subsidiary for the year ending December 31, 2011, Olon Towing INCOME STATEMENT Sales In the f Tera 1mg 30,000 $40.000 Kain on sale of gent Cost of Sales and expenses Depreciation expertise Net Income Retained Earnings 1/1 Mat Netin.com Less: Dividends Retained Earnings 12/31 15320021 1.000 4.000 25.000 15.000 60.000 20.000 25.000 15.000 10.000.00 75.000 29.000 BALANCE SHEET Receivables.net 19. 16.000 imentaries 20.500 22.000 Buildings.net 25.000 2000 Equipment 40,00 22.000 Investment in Towing TOTAL ASSETS $170.000 S 80.000 TOTAL ASSETS 100 As payable $5.000 11.000 Ka Suck 0,000 Retained Farming 75.00 20.00 1231 Non-control Interest TOTAL LIAR A EQUITY 170.000 50.000