Consolidation Entries

Innovus ChipTech Debit Credit Consolidated

Revenues $(990,000)(210,000)(1,200,000)$

Cost of Goods Sold $500,00090,000590,000$

Depreciation Expense $100,0005,000105,000$

Amortization Expense $55,00018,000$ E $20,00093,000$

Dividend Income $(40,000)-$ I $40,000-$

Net Income $(375,000)(97,000)(412,000)$

Retained Earnings $1/1(1,555,000)(450,000)$ S $450,000$ C$*(1,555,000)$

Net Income $(375,000)(97,000)(412,000)$

Dividends Declared $250,00040,000$ I $40,000250,000$

Retained Earnings $12/31(1,680,000)(507,000)(1,717,000)$

Current Assets $960,000355,0001,315,000$

Investment in ChipTech $670,000$ C$*$

S

A $-$

Equipment $($net$)765,000225,000990,000$

Trademark $235,000100,000$ A E

Existing Technology $-45,000$ A E

Goodwill $450,000-450,000$

Total Assets $3,080,000725,0002,755,000$

Liabilities $(780,000)(88,000)(868,000)$

Common Stock $(500,000)(100,000)$ S $100,000(500,000)$

Additional Paid$-$in$-$Capital $(120,000)(30,000)$ S $30,000(120,000)$

Retained Earnings $12/31(1,680,000)(507,000)$

Total Liabilities and Equity $(3,080,000)(725,000)(1,488,000)$