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From the informations in two photos: You need to prepare the three basic consolidated financial statements (the Consolidated Income Statement, the Consolidated Statement of Retained

From the informations in two photos:

You need to prepare the three basic consolidated financial statements (the Consolidated Income Statement, the Consolidated Statement of Retained Earnings and timage text in transcribedimage text in transcribedhe Consolidated Statement of Financial Position) using a worksheet format.

Company Pacquired 70% of the 100,000 outstanding common stock of Company Son 1 January 2015. The acquisition price included a $30,000 control premium. On the date of acquisition, an equipment was undervalued by $42,000 in the books of Company S. The equipment has a remaining useful life of 10 years. The remaining excess fair value was attributed to Goodwill. Company P accounted for the investment using the partial equity method. Between 1 January 2015 and 1 January 2018, the Investment in Company S account has increased by $89,180. Company S did not issue any new common stock during the period 2015-2018. On 1 January 2018, Company P reported $280,000 in bonds outstanding with a book value of $263,200. These bonds carry a coupon rate of 10%. Company S purchased half of these bonds on the open market for $135,800. During 2018, Company P sold to Company S merchandise inventory costing $112,000 at a price of $140,000. All but $14,000 of these goods were resold to outside parties by the end of 2018. Companys still owed $50,400 for inventory shipped from Company P during December. Company P has convertible bonds that were issued at face value in 2016. These are 6% bonds that can be converted into 15,000 common stock(shares). Company S has convertible bonds that were issued at face value in 2017. These are 7% bonds that can be converted into 14,000 common stock(shares). Company P has 500,000 common stock(shares) outstanding by the end of 2018. Ignore tax rate. The following is selected financial statements for Company P and Company Sat 31 December 2018. Account Company P Company S Revenues 894,600 652,400 Cost of Goods Sold 483,000 277,200 Expenses (including interest expense of 187,600 225,400 convertible bonds) Interest Expense -Bonds 33,600 NA Interest Income -Bond Investment NA 15,400 Equity in Company S Income ?? Net Income ?? ?? R/E @ 1 January 2018 307,200 505,400 Net Income ?? ?? Dividends Paid 217,000 85,400 RE @ 31 December 2018 ?? ?? Cash & Receivables 186,200 109.200 Inventory 239,400 121,800 Investment in Company S 625,840 NA Investment in Company P Bonds NA ?? Land, Buildings, & Equipment(net) 348,600 757,400 Total Assets ?? ?? Accounts Payable 115,000 132,400 Bands Payable (Convertible) 200,000 100,000 Bonds Payable 280,000 140,000 Discount on Bonds Payable ?? NA Common Stock 420,000 168,000 R/E @ 31 December 2018 ?? ?? Total Liabilities & Stockholders' Equity ?? ?? Required: 1. Using a worksheet format, prepare the Consolidated Financial Statements for year 2018, [Show all your calculations] Company Pacquired 70% of the 100,000 outstanding common stock of Company Son 1 January 2015. The acquisition price included a $30,000 control premium. On the date of acquisition, an equipment was undervalued by $42,000 in the books of Company S. The equipment has a remaining useful life of 10 years. The remaining excess fair value was attributed to Goodwill. Company P accounted for the investment using the partial equity method. Between 1 January 2015 and 1 January 2018, the Investment in Company S account has increased by $89,180. Company S did not issue any new common stock during the period 2015-2018. On 1 January 2018, Company P reported $280,000 in bonds outstanding with a book value of $263,200. These bonds carry a coupon rate of 10%. Company S purchased half of these bonds on the open market for $135,800. During 2018, Company P sold to Company S merchandise inventory costing $112,000 at a price of $140,000. All but $14,000 of these goods were resold to outside parties by the end of 2018. Companys still owed $50,400 for inventory shipped from Company P during December. Company P has convertible bonds that were issued at face value in 2016. These are 6% bonds that can be converted into 15,000 common stock(shares). Company S has convertible bonds that were issued at face value in 2017. These are 7% bonds that can be converted into 14,000 common stock(shares). Company P has 500,000 common stock(shares) outstanding by the end of 2018. Ignore tax rate. The following is selected financial statements for Company P and Company Sat 31 December 2018. Account Company P Company S Revenues 894,600 652,400 Cost of Goods Sold 483,000 277,200 Expenses (including interest expense of 187,600 225,400 convertible bonds) Interest Expense -Bonds 33,600 NA Interest Income -Bond Investment NA 15,400 Equity in Company S Income ?? Net Income ?? ?? R/E @ 1 January 2018 307,200 505,400 Net Income ?? ?? Dividends Paid 217,000 85,400 RE @ 31 December 2018 ?? ?? Cash & Receivables 186,200 109.200 Inventory 239,400 121,800 Investment in Company S 625,840 NA Investment in Company P Bonds NA ?? Land, Buildings, & Equipment(net) 348,600 757,400 Total Assets ?? ?? Accounts Payable 115,000 132,400 Bands Payable (Convertible) 200,000 100,000 Bonds Payable 280,000 140,000 Discount on Bonds Payable ?? NA Common Stock 420,000 168,000 R/E @ 31 December 2018 ?? ?? Total Liabilities & Stockholders' Equity ?? ?? Required: 1. Using a worksheet format, prepare the Consolidated Financial Statements for year 2018, [Show all your calculations]

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