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Belchfire Motors accountant was called away after completing only half of the consolidated statements at the end of 20X4. The data left behind included the
Belchfire Motors accountant was called away after completing only half of the consolidated statements at the end of 20X4. The data left behind included the following:
| Item | Belchfire Motors | Premium Body Shop | Consolidated | ||||||
| Cash | $ | 40,000 | $ | 20,000 | $ | 60,000 | |||
| Accounts Receivable | 180,000 | 30,000 | 200,000 | ||||||
| Inventory | 220,000 | 50,000 | 270,000 | ||||||
| Buildings and Equipment (net) | 300,000 | 290,000 | 590,000 | ||||||
| Investment in Premium Body Shop | 150,000 | ||||||||
| Total Debits | $ | 890,000 | $ | 390,000 | $ | 1,120,000 | |||
| Accounts Payable | $ | 30,000 | $ | 40,000 | |||||
| Bonds Payable | 400,000 | 200,000 | |||||||
| Common Stock | 200,000 | 100,000 | |||||||
| Retained Earnings | 260,000 | 50,000 | |||||||
| Total Credits | $ | 890,000 | $ | 390,000 | |||||
| Required: | |
| a. | Belchfire Motors acquired shares of Premium Body Shop at underlying book value on January 1, 20X1. What portion of the ownership of Premium Body Shop does Belchfire apparently hold? |
| b. | Compute the consolidated totals for each of the remaining balance sheet items. |
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