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Ollivander's Wand Shop acquired 100% of Gregorovitch's Wands outstanding common stock for $632,000 on December 31, 2018. Ollivander uses the equity method to account for
Ollivander's Wand Shop acquired 100% of Gregorovitch's Wands outstanding common stock for $632,000 on December 31, 2018. Ollivander uses the equity method to account for the investment. Gregorovitch paid all dividends that were declared. Trial balance for each entity as of December 31, 2019 is as follows: Gregorovitch Debit Credit 124,000 164,000 338,200 Cash Accounts Receivable Inventory Investment in Gregorovitch Buildings & Equipment Cost of Goods Sold SG&A Expenses Depreciation Expense Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable Common Stock APIC Retained Earnings Sales Income from Gregorovitch Ollivander Debit Credit 38,000 64,000 240,000 654,500 250,000 375,000 110,000 12,000 100,000 192,000 2,000 35,000 250,000 150,000 602,000 540,000 72,500 167,500 198,000 84,500 25,000 50,000 93,400 3,000 42,800 100,000 120,000 412,000 380,000 1,843,500 1,843,500 1,151,200 1,151,200 a. Prepare the basic consolidation entry for the year ended December 31, 2019. b. Prepare the accumulated depreciation consolidation entry at December 31, 2019
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