Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: Gibson Sales Cost of goods sold operating expenses

image text in transcribed
image text in transcribed
image text in transcribed
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: Gibson Sales Cost of goods sold operating expenses Dividend income $(741,000) $ (447,000) 333,000 175,000 (12,000) 196,000 62,000 $ (245,000) (189,000) $(799,000) (427,000) (189,000) 20,000 $(994,000) $(596,000) Net income Retained earnings, 1/1/18 Net income Dividends declared (245,000) 50,000 Retained earnings, 12/31/18 Cash and receivablers Inventory Investment in Davis Buildings (net) Equipment (net) 392,050298,000 543,000 556,950 549,000 412,000 211,000 629,000 451,000 $ 2,453,000 1,489,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ (829,000) (553,000) (630,000) (994,000) (340,000) 596,000) $ (1,489,000) Total liabilities and $ (2,453,000) stockholders' equity Gibson acquired 60 percent of Davis on April 1, 2018, for $556,950. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $42,000. Also on that date. the fair value of Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018. the 40 percent noncontrolling interest was $371,300. Prepare a consolidated income statement for the year ending December 31, 2018. Determine the consolidated balance for each of the following accounts as of December 31, 2018: a. b. Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required 8 Prepare a consolidated income statement for the year ending December 31, 2018. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2018 Required B Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required ARequired B Determine the consolidated balance for each of the following accounts as of December 31, 2018 ent (net) Buildings (net) K Required A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions