P8-15A Consolidation Worksheet with Sale of Bonds to Parent (Straight-Line Method) LO 8-2 Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $95,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $99,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows: Soul Company Debit Credit $ 54,600 81,000 260,000 Punk Corporation Debit Credit $ 40,000 176,000 405,000 106, 470 96,600 74,000 18,000 15, 700 28,000 $132,000 106,000 195,000 Item Cash & Receivables Inventory Buildings & Equipment Investment in Soul Company Stock Investment in Soul Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income Income from Soul Company Stock Total 67,800 13,000 4,900 18,000 $ 72,000 108,700 95,000 1,600 61,000 31,000 130,000 101,000 236,000 145,000 4,900 39,870 $959, 770 $959, 770 $ 499, 300 $499,300 e. Prepare a three-part consolidated worksheet for 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) X Answer is not complete. PUNK CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X4 Consolidation Entries Punk Corp. Soul Company DR CR Consolidated Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Soul Company Stock Consolidated Net Income 0 0 0 0 0 0 0 0 0 0 NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared 0 0 0 0 0 Ending Balance Balance Sheet Assets Cash and Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Soul Company Bonds Investment in Soul Company Stock Total Assets Liabilities & Equity Current Payable Bonds Payable Bond Premium 0 0 0 0 Common Stock Retained Earnings NCI in NA of Soul Company Total Liabilities & Equity 0 0 0 0 0 P8-15A Consolidation Worksheet with Sale of Bonds to Parent (Straight-Line Method) LO 8-2 Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $95,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $99,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows: Soul Company Debit Credit $ 54,600 81,000 260,000 Punk Corporation Debit Credit $ 40,000 176,000 405,000 106, 470 96,600 74,000 18,000 15, 700 28,000 $132,000 106,000 195,000 Item Cash & Receivables Inventory Buildings & Equipment Investment in Soul Company Stock Investment in Soul Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income Income from Soul Company Stock Total 67,800 13,000 4,900 18,000 $ 72,000 108,700 95,000 1,600 61,000 31,000 130,000 101,000 236,000 145,000 4,900 39,870 $959, 770 $959, 770 $ 499, 300 $499,300 e. Prepare a three-part consolidated worksheet for 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) X Answer is not complete. PUNK CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X4 Consolidation Entries Punk Corp. Soul Company DR CR Consolidated Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Soul Company Stock Consolidated Net Income 0 0 0 0 0 0 0 0 0 0 NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared 0 0 0 0 0 Ending Balance Balance Sheet Assets Cash and Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Soul Company Bonds Investment in Soul Company Stock Total Assets Liabilities & Equity Current Payable Bonds Payable Bond Premium 0 0 0 0 Common Stock Retained Earnings NCI in NA of Soul Company Total Liabilities & Equity 0 0 0 0 0