Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need Help creating a consolidated Income statement with all work shown On January 1st 2019 The Voldomort and Potter Companies had the following balance

image text in transcribed

image text in transcribed

I need Help creating a consolidated Income statement with all work shown

On January 1st 2019 The Voldomort and Potter Companies had the following balance sheets Voldomort Cash 2000000 inventory 1000000 building 1000000 accumulated dep. Build -400000 equipment 1000000 accumulated dep. Equip -20000 total assets 4580000 Potter 100000 100000 50000 -20000 80000 -40000 270000 accounts payable 1000000 70000 common stock $1 par additional paid in capita retained earnings 580000 2000000 1000000 100000 50000 50000 On January 2nd Voldomort purchased 90% of the outstanding shares of Potter Company for $400,000 On January 2nd Potters equipment was worth 25000 and its building was worth $70000 All other assets and liabilites of Potter have book values equal to fair market values create a consoldidated income statement a On January 1st 2019 The Voldomort and Potter Companies had the following balance sheets Voldomort Cash 2000000 inventory 1000000 building 1000000 accumulated dep. Build -400000 equipment 1000000 accumulated dep. Equip -20000 total assets 4580000 Potter 100000 100000 50000 -20000 80000 -40000 270000 accounts payable 1000000 70000 common stock $1 par additional paid in capita retained earnings 580000 2000000 1000000 100000 50000 50000 On January 2nd Voldomort purchased 90% of the outstanding shares of Potter Company for $400,000 On January 2nd Potters equipment was worth 25000 and its building was worth $70000 All other assets and liabilites of Potter have book values equal to fair market values create a consoldidated income statement 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

Mathematics Of Finance

Authors: Petr Zima

2nd Edition

0070082030, 9780070082038

More Books

Students also viewed these Accounting questions

Question

How might a countrys culture be a barrier to global business?

Answered: 1 week ago