interest accruals. 2. Prepare the eliminations, in entry form, that will be made on a consolidated worksheet pre- pared as of December 31, 2017. PROBLEMS Problem 4-1 (LO 2) 100%, equity, ending inventory. On January 1, 2015, 100% of the outstanding stock of Solo Company was purchased by Plato Corporation for $3,300,000. At that time, the book value of Solo's net assets equaled $3,000,000. The excess was attributable to equipment with a 10-year life. The following trial balances of Plato Corporation and Solo Company were prepared on December 31, 2015: Cash ........ Accounts Receivable... Inventory ... Plato Corporation 735,000 400,000 600,000 Solo Company 370,000 365,000 275,000 (continued) Aa Pure COMBINED CORPORATE ENTITIES AND CONSOLIDATIONS Property, Plato, and Equipment (net).... Investment in Solo Company ....... Accounts Payable ........... Common Stock ($10 par) .......... Poid in Capital in Excess of Par....... Retained Earnings, January 1, 2015... Sales .......... Cost of Goods Sold .......... Other Expenses...... Subsidiary Income.. . Totals .................. Plato Solo Corporation Company 4,000,000 2,300,000 3,510,000 135,000) (100,000) 11,000,000) (400,000 11,500,000) (200,000) (5,500,000) (2,400,000) (12,000,000) 11,000,000) 7,000,000 750,000 4,000,000 40,000 (210,000) Throughout 2015, sales to Plato Corporation made up 30% of Solo's revenue and produced a 25% gross profit rate. At year-end, Plato Corporation had sold $250,000 of the goods pur- chased from Solo Company and still owed Solo $30,000. None of the Solo products were in Plato's January 1, 2015, beginning inventory. Prepare the worksheet necessary to produce the consolidated income statement and balance sheet of Plato Corporation and its subsidiary for the year ended December 31, 2015. Include the determination and distribution of excess schedule. Required Problem 4-1 (LO 2) 100%, equity, ending inventory. On January 1, 2015, 100% of the outstanding stock of Solo Company was purchased by Plato Corporation for $3,300,000. At that time, the book value of Solo's net assets equaled $3,000,000. The excess was attributable to equipment with a 10-year life. The following trial balances of Plato Corporation and Solo Company were prepared on December 31, 2015: Cash.. Plato Corporation 735,000 400,000 600,000 Solo Company 370,000 365,000 275,000 Accounts Receivable ...... Inventory .... (continued) Part / COMBINED CORPORATE ENTITIES AND CONSOLE Property, Plato, and Equipment (net)..... Investment in Solo Company ............ Accounts Payable ......... Common Stock ($10 par) ........... Paid in Capital in Excess of Par.. Retained Earnings, January 1, 2015.......... Sales ......... Cost of Goods Sold Other Expenses Subsidiary Income ...... Totals ............ Plato Solo Corporation Company 4,000,000 2,300,000 3,510,000 (35,000) (100,000) (1,000,000) (400,000 (1,500,000) (200,000 (5,500,000) (2,400,000) (12,000,000) (1,000,000) 7,000,000 750,000 4,000,000 40,000 (210,000) Throughout 2015, sales to Plato Corporation made up 30% of Solo's revenue and produced a 25% gross profit rate. At year-end, Plato Corporation had sold $250,000 of the goods pur chased from Solo Company and still owed Solo $30,000. None of the Solo products were in Plato's January 1, 2015, beginning inventory. Prepare the worksheet necessary to produce the consolidated income statement and balance sheet of Plato Corporation and its subsidiary for the year ended December 31, 2015. Include the determination and distribution of excess schedule. quired
