Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
January 1, 2019 SOS company invested 2,400,000 S for75% of RAT company, in that date the fair value of RAT is equal to its book
January 1, 2019 SOS company invested 2,400,000 S for75% of RAT company, in that date the fair value of RAT is equal to its book value except inventories was undervalued 20,000, equipment (10years) undervalued 80,000,6% 5 years bonds undervalued 60,000. The owner's equity was $1,300,000 shares, 900,000 premiums and 600,000 as retained earnings, the following are selective information about the parent and :its subsidiary During 2019 The subsidiary reported net income for 2019-1 was $152,000 and declared and paid $50000 dividend During 2020 the parent sold a land cost 200,000 for 2020/1/1-2 $220,000. The reported income for the subsidiary was 90,000 and 10,000 dividends the subsidiary sold an equipment for parent 2020/1/1-3 for 120,000 and net book value 110,000, five years remaining use life the parent sold goods for 250,000 including 1/11/2020-4 25% markup, the subsidiary ending inventory include .60000S inventory from parent 5- The subsidiary sold goods at 150,000 which cost$120,000,30% of these goods remained in inventory 6- Subsidiary net income of the year 2020 was $180,000 and$30,000 dividend. 7- During 2020 the subsidiary sold goods with mark up 20% at cost 300,000, 25% of this inventory still in hand in 31/12/2020. the subsidiary sold the land that purchased from parent -8 .for 250,000 9- The subsidiary reported net income for 2020 was 80,000 and 20,000 dividends were paid. The parent retained earnings in 31/12/2018 -10 1,800,000 $. Dividends and income without income from subsidiary during the years was: 2019 (income 500,000$ dividend 150,000), 2020 (income 300,000$, dividend (80,000 Required: 1- Prepare all the elimination entries in 31/12/2020 2- Journalize the income and dividend under equity methods in parent's book for the year 2020. 3- Complete the following table: Accounts 2019 2020 Income from subsidiary Controlling interest share Consolidated income Consolidated retained earning Non-controlling share Non-controlling of interest Investment/ Unamortized amount Amortizations January 1, 2019 SOS company invested 2,400,000 $ for 75% of RAT company, in that date the fair value of RAT is equal to its book value except inventories was undervalued 20,000, equipment (10years) undervalued 80,000,6% 5 years bonds undervalued 60,000. The owner's equity was $1,300,000 shares, 900,000 premiums and 600,000 as retained earnings, the following are selective information about the parent and its subsidiary: During 2019 1- The subsidiary reported net income for 2019 was $152,000 and declared and paid $50000 dividend. During 2020 2-1/1/2020 the parent sold a land cost 200,000 for $220,000. The reported income for the subsidiary was 90,000 and 10,000 dividends 3-1/1/2020 the subsidiary sold an equipment for parent for 120,000 and net book value 110,000, five years remaining use life. 4-1/11/2020 the parent sold goods for 250,000 including 25% markup, the subsidiary ending inventory include 60000$ inventory from parent. 5- The subsidiary sold goods at 150,000 which cost$120,000,30% of these goods remained in inventory 6- Subsidiary net income of the year 2020 was $180,000 and $30,000 dividend. 7-During 2020 the subsidiary sold goods with mark up 20% at cost 300,000, 25% of this inventory still in hand in 31/12/2020. 8- the subsidiary sold the land that purchased from parent for 250,000. 9- The subsidiary reported net income for 2020 was 80,000 and 20,000 dividends were paid. 10- The parent retained earnings in 31/12/2018 1,800,000 $. Dividends and income without income from subsidiary during the years was: 2019 (income 500,000$ dividend 150,000), 2020 (income 300,000$, dividend 80,000). Required: 1. Prepare all the elimination entries in 31/12/2020 2. Journalize the income and dividend under equity methods in parent's book for the year 2020. 3. Complete the following table: 2019 2020 Income from subsidiary Controlling interest share Consolidated income Consolidated retained earning Non-controlling share Non-controlling of interest Investment/ Unamortized amount Amortizations Accounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started