Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1 , 2 0 2 1 , Sledge had common stock of $ 3 4 0 , 0 0 0 and retained earnings

On January 1,2021, Sledge had common stock of $340,000 and retained earnings of $480,000. During that year, Sledge reported
sales of $350,000, cost of goods sold of $180,000, and operating expenses of $62,000.
On January 1,2019. Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $82,000 of the acquisition-date
fair value was assigned to unrecorded contracts (with a 20-year life) and $42,000 to an undervalued building (with a 10-year remaining
life).
In 2020, Sledge sold inventory costing $24,050 to Percy for $37,000. Of this merchandise, Percy continued to hold $6,000 at year-
end. During 2021, Sledge transferred inventory costing $23,100 to Percy for $42,000. Percy still held half of these items at year-end.
On January 1,2020, Percy sold equipment to Sledge for $23,000. This asset originally cost $38,000 but had a January 1,2020, book
value of $13,400. At the time of transfer, the equipment's remaining life was estimated to be five years.
Percy has properly applied the equity method to the investment in Sledge
a. Prepare worksheet entries to consolidate these two companies as of December 31,2021.
b. Compute the net income attributable to the noncontrolling interest for 2021.
Complete this question by entering your answers in the tabs below.
Required B
Prepare worksheet entries to consolidate these two companies as of December 31,2021.(If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.'
Consolidation
Worksheet Entries
Prepare Entry ?-G
Prepare Entry ?**G
PrePare Entry *TA
Prepare entry s??
Prepare entry a
Prepare entry I
Prepare entry E??
Prepare entry TI??
Prepare entry g
Prepare etry ED
Complete this question by entering your answers in the tabs below.
Compute the net income attributable to the noncontrolling interest for 2021.
Net income attributable to noncontrolling interest
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing Using Controls To Protect Information Assets

Authors: Chris Davis, Mike Schiller, Kevin Wheeler

3rd Edition

1260453227, 978-1260453225

More Books

Students also viewed these Accounting questions