Question
Parent Company P owns 80% of Subsidiary S. The following balances are provided: Account Parent P Subsidiary S Assets $1,000,000 $300,000 Liabilities $400,000 $100,000 Equity
Parent Company P owns 80% of Subsidiary S. The following balances are provided:
Account | Parent P | Subsidiary S |
Assets | $1,000,000 | $300,000 |
Liabilities | $400,000 | $100,000 |
Equity | $600,000 | $200,000 |
(a) Prepare the consolidated balance sheet. (b) Calculate the non-controlling interest. (c) Determine the impact of intercompany transactions. (d) Discuss the principles of consolidation.
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
