Question
Norse Inc. owns 80% of Shipping Corp. The two companies Balance Sheet information at December 31 is as follows: Norse Shipping Cash $ 41,000 $
Norse Inc. owns 80% of Shipping Corp. The two companies Balance Sheet information at December 31 is as follows:
| Norse | Shipping | |||
| Cash | $ 41,000 | $ 43,000 | ||
| Accounts Receivable (net) | 86,000 | 75,000 | ||
| Note Receivable from Shipping | 67,000 | --- | ||
| Inventory | 128,000 | 36,000 | ||
| Investment in Shipping | 290,000 | --- | ||
| Fixed Assets (net) | 267,000 | 338,000 | ||
| Total Assets | $879,000 | $492,000 | ||
| Accounts Payable | $ 72,000 | $ 65,000 | ||
| Notes Payable | 301,000 | 67,000 | ||
| Other Liabilities | 11,000 | 10,000 | ||
| Common Stock | 141,000 | 160,000 | ||
| Retained Earnings | 354,000 | 190,000 | ||
| Total Liabilities and Equity | $879,000 | $492,000 | ||
a. What journal entries would be made as part of this consolidation?
b. Prepare the consolidated Balance Sheet of Norse Inc. (please show work on how you got the #s)
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Fundamentals Of Auditing
Authors: Basu
1st Edition
8131728854, 978-8131728857
