c. Following are selected financial statement accounts for the parent:

Income statement:			Balance sheet:
Sales	$13,815,000		Assets
Cost of goods sold	(9,670,500)		Cash	$1,526,569
Gross profit	4,144,500		Accounts receivable	1,768,320
Equity income	652,680		Inventory	2,680,110
Operating expenses	(2,624,850)		Equity investment	4,139,188
Net income	$2,172,330		Property, plant, and equipment (PPE), net	14,273,658
				$24,387,845
Statement of retained earnings:
BOY retained earnings	$11,898,000		Liabilities and stockholders equity
Net income	2,172,330		Current liabilities	$1,106,582
Dividends	(475,920)		Long-term liabilities	750,000
Ending retained earnings	$13,594,410		Common stock	1,568,535
			APIC	7,291,571
Statement of accum. comp. income:			Retained earnings	13,594,410
BOY cumulative translation adjustment	$(102,848)		Cumulative translation adjustment	76,748
Current-year translation gain (loss)	179,596			$24,387,845
EOY cumulative translation adjustment	$76,748

Assume the following information: The purchase price for the subsidiary included an AAP asset relating to Land that the parent estimated was worth GBP200,000 more than its book value on the subsidiarys balance sheet. Confirm the balance of the Equity Investment account of $4,139,188 on the parents balance sheet.

Equity Investment
BOY Common stock	Answer	Answer
BOY APIC	Answer	Answer
BOY Retained earnings	Answer	Answer
BOY AAP	Answer	Answer
BOY Cumulative translation adjustment	Answer	Answer
Equity income	Answer	Answer	Dividends
Current translation adjustment	Answer	Answer
AAP Translation adjustment (AOCI)	Answer	Answer
Balance	Answer

d. Using your translated subsidiary financial statements from Part a and the parents financial data provided in Part c, prepare the consolidation spreadsheet for the year.

				Elimination Entries
	Parent	Sub		Dr	Cr		Consolidated
Income statement:
Sales	$13,815,000	Answer					Answer
Cost of goods sold	(9,670,500)	Answer					Answer
Gross profit	4,144,500	Answer					Answer
Equity income	652,680		[C]	Answer			Answer
Operating expenses	(2,624,850)	Answer					Answer
Net income	$2,172,330	Answer					Answer
Statement of retained earnings:
BOY retained earnings	$11,898,000	Answer	[E]	Answer			Answer
Net income	2,172,330	Answer					Answer
Dividends	(475,920)	Answer			Answer	[C]	Answer
EOY retained earnings	$13,594,410	Answer					Answer
Statement of Accumulated Comprehensive Income:
BOY cumulative translation adjustment	$(102,848)	Answer			Answer	[E]	Answer
Current-year translation gain (loss)	179,596	Answer	[C]	Answer	Answer	[D]	Answer
EOY cumulative translation adjustment	$76,748	Answer					Answer
Balance sheet:
Assets
Cash	$1,526,569	Answer					Answer
Accounts receivable	1,768,320	Answer					Answer
Inventory	2,680,110	Answer					Answer
Equity investment	4,139,188				Answer	[C]	Answer
					Answer	[E]
					Answer	[A]
Property, plant and equipment (PPE), net	14,273,658	Answer	[A]	Answer			Answer
			[D]	Answer
Total assets	$24,387,845	Answer					Answer
Liabilities and stockholders equity
Current liabilities	1,106,581	Answer					Answer
Long-term liabilities	750,000	Answer					Answer
Common stock	1,568,535	Answer	[E]	Answer			Answer
APIC	7,291,571	Answer	[E]	Answer			Answer
Retained earnings	13,594,410	Answer					Answer
Cumulative translation adjustment	76,748	Answer					Answer
Total liabilities and equity	$24,387,845	Answer		Answer	Answer		Answer

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Partially correct

Marks for this submission: 6.82/25.00.