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: Prepare a 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 income 20x7					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