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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Davis (421,000) 181,000 82,000 Sales Cost of goods
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Davis (421,000) 181,000 82,000 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total 11 abilities and stockholders' equity Gibson (749,000) 363,000 240,000 (24,000) $ (170,000) (751,000) (170,000) 60,000 (861,000) 287,300 562,000 569,700 526,000 403,000 $ 2,348,000 $ (857,000) (630,000) (861,000) $ (2,348,000) S (158,000) $ (404,000) (158,000) 40,000 (522,000) $ 92,000 183,000 0 688,000 454,000 $ 1,417,000 $(555,000) (340,000) (522,000) $(1,417,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $569,700. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $63,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $379,800. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021. a. Prepare a consolidated Income statement for the year ending December 31, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated Income statement for the year ending December 31, 2021. (Enter all amounts as positive valu Consolidated Income Statement For the Year Ending December 31, 2021 0 0
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