On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $699,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $211,000. On January 1, Year 5, the shareholders' equity of Sic was as follows:

Ordinary shares (10,000 no par value shares issued)$200,000Retained earnings 336,000 $536,000

The following are the statements of retained earnings for the two companies for Years 5 and 6:

Pic Sic Year 5Year 6 Year 5Year 6Retained earnings, beginning of year$572,000 $646,500 $336,000 $374,500 Profit 174,500 145,500 128,500 145,000 Dividends (100,000) (120,000) (90,000) (90,000)Retained earnings, end of year$646,500 $672,000 $374,500 $429,500

Additional Information

Pic uses the cost method to account for its investment in Sic.

Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records.

There were no unrealized profits from intercompany transactions since the date of acquisition.

Required:

(a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.)

Consolidated profit $

(b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.)

(i)Customer contracts$ (ii)Non-controlling interest$ (iii)Retained earnings$

When materials are requisitioned from the Raw Materials O points Inventory they can be classified as either direct materials (which are traced directly to the job) or indirect materials (which are items so insignificant that they are not traced directly to a job and instead are included in manufacturing overhead). What is the journal entry made when the material is classified as direct material? * * O Debit Work in Process Inventory, Credit Direct Materials O Debit Direct Materials, Credit Raw Materials Inventory O Debit Direct Materials, Credit Raw Materials Inventory O Debit Work in Process Inventory, Credit Raw Materials Inventory Time cards are collected and it is determined that total 0 points labor (both direct and indirect) is $4,890. What journal entry would be made when the weekly payroll is recorded? O Debit Work in Process Inventory, Credit Factory Payroll O Debit Factory Payroll, Credit Cash or Wages Payable O Debit Work in Process Inventory, Credit Wages Payable O Debit Direct Labor, Credit Work in Process InventoryTurner calculated his price of $225,000 as follows: Raw material $ 78,750 Direct labor 33,750 Factory overhead 36,000 Delivery expenses 6,750 Administrative overhead 22.500 Total costs $177,750 Desired profit margin 47.250 Dollar price $225,000 Times exchange rate 2.50 Deutschemark price DM 562,500 Exhibit 2 Culver Radio, Inc., Balance Sheet, December 31, 1982, and December 31, 1981 (unaudited) Assets Current Assets Cash 69.402 170,987 Accounts receivable 99.906 104.374 Advances to employees 5.302 Due from officers 5.540 Inventory Prepaid taxes 438,402 361,327 Total Current Assets 1.300 Fixed Assets 14318 642,228 Net fixed assets Accumulated depreciation S Net Fixed Assets 144.998 121.773 Other Assets deposits 81.579 57,089 Total Assets 63.419 64.642 11.639 15.361 773.231 Liabilities and Stockholders Equity Current Liabilities Accounts payable 175.686 120,798 Note payable automobile 1,876 6,090 Accrued expenses Accrued payroll and commissions 132,717 129,476 Payroll taxes payable 16.524 7.094 Sales taxes payable 4.794 2.260 Customers deposits 713 3,019 Income taxes due 55,839 Total Current Liabilities 6.250 Stockholders' Equity 332.310 331.426 Capital stock-par value $10/share Authorized 701000 shares Issued & outstanding 16,600 shares Retained earnings S 165,000 166,000 INTLI NAME, CARDRAINN'X 3December 22 Sold merchandise on account, $14,800, with terms 2/10, net 30. The cost of the goods sold was 59.620. December 31 Received payment within the discount period Required: Journalize the above merchandise transactions. The company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account tiffes Chart of Accounts CHART OF ACCOUNTSInstructions Chart of Accounts General Journal