Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assignments CLOZ Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings.

image text in transcribed
image text in transcribed
Assignments CLOZ Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $240,000 on Jan 1, 2019, when Bee had $250,000 capital stock and $50,000 retained carnings. See acquired 40% in Bee on Jan 1, 2019 for $80,000, when Bee had $100,000 capital stock and $20,000 retained earnings. The excess of fair over book value relates to goodwill. . During 2018, Pec Company sold goods to See Company at a profit of $30,000. This merchandise was sold during 2019. Bee Company sold merchandise that had cost $80,000 to See Company for $100,000 during 2019. Half of this merchandise is held by See at December 31, 2019 Required: Compute all missing and required data then prepare the consolidated financial statements for the year ended December 31, 2019. Consolidated Eliminations Debit Credit Pee See Bee INCOME STATEMENT Sales 600,000 400,000 200,000 Income from See Ingome from Bee Cost of Sales (300,000) 150,000) (70,000) Other Expenses (100.000) 50.000) (30.000) 452,000 240,000 100,000 150,000 50,000 50,000 (50,000) 100,000) 50.000 190,000 100,000 MI Expense Sec IML Expense Bee Net income Retained Earnings 1/1/19 Less: Dividends Retained Earnings 12/31/19 BALANCE SHEET: Cash Accounts receivable Inventories Plant assets-net Investment in See: 75% Investment in Bee: 60%+ 30% Goodwill 200,000 180,000 166,000 200,000 300.000 220.000 200.000 400.000 1,16800 344,000 100,000 120,000 134,000 90.000 320.000 2,372,800 1,100,000 $664,000 TOTAL ASSETS LIAB. & EQUITY Accounts payable Capital Stock Retained Earnings 12/31 NC Interest 800,000 80,000 1,000,000 830,000 190,000 40,000 524,000 100,000 TOTAL LIAB. & EQUITY Assignments CLOZ Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $240,000 on Jan 1, 2019, when Bee had $250,000 capital stock and $50,000 retained carnings. See acquired 40% in Bee on Jan 1, 2019 for $80,000, when Bee had $100,000 capital stock and $20,000 retained earnings. The excess of fair over book value relates to goodwill. . During 2018, Pec Company sold goods to See Company at a profit of $30,000. This merchandise was sold during 2019. Bee Company sold merchandise that had cost $80,000 to See Company for $100,000 during 2019. Half of this merchandise is held by See at December 31, 2019 Required: Compute all missing and required data then prepare the consolidated financial statements for the year ended December 31, 2019. Consolidated Eliminations Debit Credit Pee See Bee INCOME STATEMENT Sales 600,000 400,000 200,000 Income from See Ingome from Bee Cost of Sales (300,000) 150,000) (70,000) Other Expenses (100.000) 50.000) (30.000) 452,000 240,000 100,000 150,000 50,000 50,000 (50,000) 100,000) 50.000 190,000 100,000 MI Expense Sec IML Expense Bee Net income Retained Earnings 1/1/19 Less: Dividends Retained Earnings 12/31/19 BALANCE SHEET: Cash Accounts receivable Inventories Plant assets-net Investment in See: 75% Investment in Bee: 60%+ 30% Goodwill 200,000 180,000 166,000 200,000 300.000 220.000 200.000 400.000 1,16800 344,000 100,000 120,000 134,000 90.000 320.000 2,372,800 1,100,000 $664,000 TOTAL ASSETS LIAB. & EQUITY Accounts payable Capital Stock Retained Earnings 12/31 NC Interest 800,000 80,000 1,000,000 830,000 190,000 40,000 524,000 100,000 TOTAL LIAB. & EQUITY

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch

6th Edition

0132366355, 978-0132366359

More Books

Students also viewed these Accounting questions

Question

Do I really need this item?

Answered: 1 week ago

Question

=+How would you change the tone of voice?

Answered: 1 week ago