Complete a Consolidated Worksheet for the year ended December 31, 2021 (including Consolidated Journal Entries)

Dynamic Golf Corporation (Dynamic) manufactures and markets golf equipment. On January 1, 2020, Dynamic acquires Sports Unlimited (Sports), a distributor of sports equipment. Dynamic's intention for acquiring Sports is to have Sports be another outlet for the sale of Dynamic's golf equipment. Dynamic paid cash of $363,000 for 75 percent of Sports' outstanding common stock. Sports book value on January 1, 2020 was $320,000. Common Stock was $100,000 and Retained Earnings was $220,000. On January 1, 2020, Sports held patents that were undervalued by $96,000. The patents have a remaining life of 15. Additionally, Sports had a Customer List that was not recorded on the books of Sports. The Customer List had a value of $37,000 and a remaining life of 5. Any remaining excess of acquisition date fair value was assigned to Goodwill. No Goodwill has been impaired during 2020 and 2021 Intra-entity inventory sales from Dynamic to Sports are listed below: Year Transfer Price to Sports Ending Inventory Balance (at transfer price) Gross Profit Ratio on Transfers 20% 20% 2020 2021 $150,000 $153,000 $50,000 $40,000 On January 1, 2021, Sports sold equipment to Dynamic for $42,000. Sports originally purchased the equipment for $60,000 and the equipment had a net book value of $30,000 on January 1, 2021. The equipment has a remaining useful life of 15. Both Dynamic and Sports use straight-line depreciation with no residual value. Sports recorded the gain on the equipment sales to other Income and Deductions. Dynamic uses the equity method to account for its investment in Sports. Cash and Receivable Inventory Investment in Sports Unlimited Buildings, net Equipment, net Patents Customer List Goodwill Liabilities Common Stock Retained Earnings NCI Interest Dividends Sales Cost of Goods Sold Operating Expense Other Income & Deductions Equity Earnings in Sports Trial Balance December 31, 2021 Debit/Credit) Dynamic Golf Sports Unlimited 254,600 148,000 233,000 129,000 404,650 0 308,000 202,000 220,000 86,000 0 20,000 0 0 o 0 (390,000) (160,000) (300,000) (100,000) (695,000) (280,000) 0 0 45,000 15,000 (700,000) (335,000) 460,000 230,000 188,000 70,000 0 (25,000) (28,250) 0 Totals 0 0 Dynamic Golf Corporation (Dynamic) manufactures and markets golf equipment. On January 1, 2020, Dynamic acquires Sports Unlimited (Sports), a distributor of sports equipment. Dynamic's intention for acquiring Sports is to have Sports be another outlet for the sale of Dynamic's golf equipment. Dynamic paid cash of $363,000 for 75 percent of Sports' outstanding common stock. Sports book value on January 1, 2020 was $320,000. Common Stock was $100,000 and Retained Earnings was $220,000. On January 1, 2020, Sports held patents that were undervalued by $96,000. The patents have a remaining life of 15. Additionally, Sports had a Customer List that was not recorded on the books of Sports. The Customer List had a value of $37,000 and a remaining life of 5. Any remaining excess of acquisition date fair value was assigned to Goodwill. No Goodwill has been impaired during 2020 and 2021 Intra-entity inventory sales from Dynamic to Sports are listed below: Year Transfer Price to Sports Ending Inventory Balance (at transfer price) Gross Profit Ratio on Transfers 20% 20% 2020 2021 $150,000 $153,000 $50,000 $40,000 On January 1, 2021, Sports sold equipment to Dynamic for $42,000. Sports originally purchased the equipment for $60,000 and the equipment had a net book value of $30,000 on January 1, 2021. The equipment has a remaining useful life of 15. Both Dynamic and Sports use straight-line depreciation with no residual value. Sports recorded the gain on the equipment sales to other Income and Deductions. Dynamic uses the equity method to account for its investment in Sports. Cash and Receivable Inventory Investment in Sports Unlimited Buildings, net Equipment, net Patents Customer List Goodwill Liabilities Common Stock Retained Earnings NCI Interest Dividends Sales Cost of Goods Sold Operating Expense Other Income & Deductions Equity Earnings in Sports Trial Balance December 31, 2021 Debit/Credit) Dynamic Golf Sports Unlimited 254,600 148,000 233,000 129,000 404,650 0 308,000 202,000 220,000 86,000 0 20,000 0 0 o 0 (390,000) (160,000) (300,000) (100,000) (695,000) (280,000) 0 0 45,000 15,000 (700,000) (335,000) 460,000 230,000 188,000 70,000 0 (25,000) (28,250) 0 Totals 0 0