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Part 3: The trial balances for the two companies on December 31, 2008, included the following amts: Trial Balance December 31, 2008 Mortar Corporation Granite
Part 3: The trial balances for the two companies on December 31, 2008, included the following amts: Trial Balance December 31, 2008 Mortar Corporation Granite Company Debit Credit Debit Credit Cash 59,000 31,000 Accounts Receivable 83,000 71,000 Inventory 275,000 118,000 Land 80,000 30,000 Buildings & Equipment 500,000 150,000 Investment in Granite Company Stock 206,200 Cost of Goods Sold 490,000 310,000 Depreciation Expense 25,000 15,000 Other Expense 62,000 100,000 Dividends Declared Accumulated Depreciation Accounts payable Mortgage payable Common Stock 45,000 25,000 180,000 90,000 86,000 30,000 200,000 70,000 300,000 50,000 Retained Earnings Sales Income from Subsidiary 385,000 140,000 650,000 470,000 24,200 1,825,200 1,825,200 850,000 850,000 Additional information for 2008: Granite reported $45,000 of income and $25,000 of dividends in 2008. At December 31, 2008, Mortar's management reviewed the amount attributed to goodwill and concluded goodwill was impaired and should be reduced to $14,000. Also, detailed analysis of receivables and payables showed that Mortar owed Granite $9,000 on December 31, 2008. 5. Give all journal entries recorded by Mortar with regard to its investment in Granite during 2008. 6. Give all eliminating entries needed to prepare a full set of consolidated financial statements for 2008. Show Book value calculations & excess value (differential) calculations (see last page)
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