Bridget COMPANY AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet December 31, 2021 Bridget Bats and More Consolidation Entries Noncontroling Consolidated Accounts Company Company Debit Credit interest Totals income statement Revenue -710000 355000 Cost of goods sold 568000 284000 Gross Profit -142000 -71000 SGA expenses 34600 10000 nterrest income -800 4000 interest expense 10000 5000 equity in subsidiary earnings Other income/losses -5000 Noncontroling interest in Bats and More's earnings net income 60000 changes in Retained earnings Retained earnings-begining balance, Bridget -170000 Retained earnings-begining balance, Bats and More -140000 net income -60000 dividends paid 92640 40000 retained earnings-ending balance -160000 Cash 66,560 22000 Inventory 280,000 124,000 Land 150,000 190,000 Buildings (net) 280,000 81,000 Equipment 327,000 35,000 Accum. Depre-Equipment (100,000) (10,000) Investment in Bats and More Total debits 442,000 Accounts payable (287, 100) -36000 Long-term liabilities (511,500) (166,000) Noncontroling interest in Bats and More-Beginning ........ Noncontroling interest in Bats and More-Ending Common stock (150,000) (80,000) Retained earnings, Ending (160,000) Total credits -442000Part 1. 1. Bridget Co. acquired 80% of Bats and More Co. common stock on 01/01/2020. There is no difference between book value and market value for Bats and lvlore's assets and no goodwill when Bridget acquired Bats and More. During 2021, Bats and More Go. sold to Bridget inventory that costs $200,000 for $240,000. By the end of 2021, Bridget sold 60% of those inventory to outside customers. In addition, during 2021, Bridget sold to outside customers all of the inventory that was carried from 2020. The inventory carried from 2020 was originally sold by Bats and More to Bridget for $50,000. The cost of the inventory for Bats and More was $40,000. Also remember that on 01/01/2020 right after acquisition, Bats and More sold a piece of equipment to Bridget for $20,000. The equipment was originally purchased by Bats and More for 30,000 and has accumulated depreciation of $15,000 on 01/01/2020. The equipment is depreciated by Bridget with straight-line method based on a 5 year useful life (i.e. 2020-2024, inclusive). Assume that Bats and More would depreciate the equipment by $3,000 per year if it had not sold the equipment. Bats and More made net income of $60,000 and paid $40,000 dividend in 2021. There are no other intercompany transactions in 2021 other than the sales of inventory and equipment. Using the above information, please use the acquisition method to consolidate the books of Bridget and Bats and More Co. on 12/31/2021, assuming that Bridget records its investment in subsidiary with the equity method. Bridget's accounting entries on its investment accounts under equity method at end of 2021 Investment in Bats and More adjustment for subsidiary's net income Equity in Bats and More's ealnings Cash adjustment for subsidiary's dividend Investment in Bats and More Equity in subisidiaiy earnings adjustment for unrealized gain from sale of inventory in 2021 Investment in Bats and More Investment in Bats and More adjustment for gain in sale of inventory carried from 2020 Equity in subisidialy earnings Equity in subisidiaty eamings adjustment for unrealized gain from sale of equipment in 2020 Investment in Bats and More hwesme'm in Ba\" and More adjustment for 2021 depreciation expense for the Equity in subisidialy ealnings equipment sold in 2020 Investment in Bats and More Equity in Subsidiary earnings 1/1/2021 balance 164800 Bats and More 2021 earnings realized gain from sale of inventory carried overfrom 2020 unrealized gain from 2021 inventory sale 123 1/2021 balance gain from tranfer of equipment in 2020 adjustment to depreciation exp. for transferred equipment total 2021 Equity in subsidiary earnings Bridget COMPANY AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet December 31, 2021 Bridget Bats and More Consolidation Entries Noncontroling Consolidated