Question
Equity Method Income Statement Perky International Corporation purchased Singing Manufacturing Company on January 02, 20x7.The acquisition was for 100% control of all voting stock of
Equity Method Income Statement
Perky International Corporation purchased Singing Manufacturing Company on January 02, 20x7.The acquisition was for 100% control of all voting stock of Singing Manufacturing Company.
On December 30, 20x7, the controller provided the following information to prepare the net income and retained earnings statements for the two companies.
Perky Corporation Singing Company
Sales 1,000,000 300,000
Cost of goods sold 400,000 100,000
Depreciation expenses 100,000 50,000
Other expenses 100,000 50,000
Dividends declared 50,000 25,000
Retained earnings 500,000 100,000
1/2/20x7
Directions: Net income statement and retained earnings statement for consolidated.
A.Net Income Statement 20x7
Parent's net income XXX
Parent's equity income from subsidiary XXX
Subsidiary net income20x7 XXX
Consolidated net income XXX
B. Retained Earnings (RE) Statement
Parent's beginning RE from operations XXX
Parent's income from operations XXX
Parent's income from subsidiary in 20x7 XXX
Parent's dividend to stockholders XXX
Consolidated retained earnings XXX
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