Name: Student Number: Q.5 (24 points) Jones Company purchased 90% of shares of Turner Company on January 1, 2019. Transactions in between lones and Turner Company during 2019 are as follows: There are sales of merchandise inventory between Jones and Turner Company, Sales figure of Jones Company includes the sale to Turner Company at the amount of $42,000 on cash. The cost of merchandise sold of this transaction were $34.000 for lone: Those merchandise inventories has been sold to the third parties for $48.000 by Turner Company Jones Company has account receivable from Turner Company at the amount of $21,000 Jones Company got service from Turner Company at the amount of $600. Jones Company reported this expense on the "Othe Expenses and Turner Company reported this income on the other Income". . BALANCE SHEETS (DECEMBER 31, 2019) JONES COMPANY ELIMINATIONS TURNER COMPANY JONES COMPANY CONSOLIDATED BALANCE SHEET (DECEMBER 31, 2019) CURRENT ASSETS CASH and CASH EQUIVALANCE ACCOUNTS RECEIVABLE MERCHANDISE INVENTORY 17.400 66,000 58.500 12,400 82,200 21,000 NON-CURRENT ASSETS TANGIBLE ASSETS -ACCUMULATED DEPRECIATION SUBSIDIARY 175,200 (55,4001 76,000 125,000 (46,600) TOTAL ASSETS 337,700 194,000 LIABILITIES BANK LOAN ACCOUNTS PAYABLE TAX PAYABLE 87,600 52.500 1,200 90.000 18,400 400 SHAREHOLDER'S EQUITIES CAPITAL RETAINED EARNINGS NET INCOME 150,000 28,200 18,200 60.000 18.000 7.200 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITIES 337,700 194,000 INCOME STATEMENTS FOR THE YEAR 2019) JONES COMPANY TURNER COMPANY ELIMINATIONS JONES COMPANY CONSOLIDATED INCOME STATEMENT (FOR THE YEAR 2019) 176,000 -148,000 28,000 -8.000 20,000 SALES REVENUE COST of GOODS SALES GROSS MARGIN OPERATING EXPENSES INCOME AFTER OPERATING ACTIVIES OTHER INCOME OTHER EXPENCES INCOME BEFORE TAX TAX EXPENSE NET INCOME 78,000 56,000 22,000 -15,000 7,000 600 -500 19,400 -1.200 18,200 7,600 -400 7,200 Required: Prepared the consolidated financial statements for Jones Company after doing necessary eliminations, (You can copy and paste the above worksheet in to your answer sheet.) 2