Part A:

Part B:

You have the use the information in Part A to fill out Part B

=$600,000$500,000 Using the information in Problem 4 and assuming the beginning of the year (20x3) balance in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1,201. The purchise price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000. sold at a profit of $5,000 was in the inventory of Monroe at December 31, 202. Below are the balances of accounts of Monroe and Adams at December 31, 203. Consolidation Entries Consolidated Bal. Sales \begin{tabular}{|c|c|c|c} Monroe & Adams & Dr. & Cr. \end{tabular} \begin{tabular}{l|l|l|l|} \hline CGS \& Expenses & $30,000 & $150,000 \\ \hline Income from S. & & \\ \hline Income & & & $100,000 \\ \hline NCl & & & \\ \hline \end{tabular} Controlling Interest \begin{tabular}{|l|r|r|} \hline Retained Earnings Jan 1, 10 & $700,000 & $190,000 \\ \hline Dividends & 100,000 & 0 \\ \hline Retained Earnings Dec 31, 10 & & $290,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Cash & $120,000 & $30,000 \\ \hline Receivables & 90,000 & 70,000 \\ \hline Inventory & 100,000 & 100,000 \\ \hline Equipment (net) & 100,000 & 350,000 \\ \hline Patents & & 50,000 \\ \hline \end{tabular} Investment in A Goodwill Land Building (net) Accounts Payable Capital Stock \begin{tabular}{r|r} $126,000 & $50,000 \\ \hline 600,000 & 460,000 \end{tabular} Non-Controlling Interest Retained Earnings (12/31) =$600,000$500,000 Using the information in Problem 4 and assuming the beginning of the year (20x3) balance in the Investment in A account is $716,000 complete the consolidated worksheet below. To aid in this, Information from Problem 4 is repeated below. Monroe Company purchased 80% of Adams Company on January 1,201. The purchise price paid was $600,000. On that day, the book value of Adams was $500,000. Excess of cost over book value is due to goodwill. Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000. sold at a profit of $5,000 was in the inventory of Monroe at December 31, 202. Below are the balances of accounts of Monroe and Adams at December 31, 203. Consolidation Entries Consolidated Bal. Sales \begin{tabular}{|c|c|c|c} Monroe & Adams & Dr. & Cr. \end{tabular} \begin{tabular}{l|l|l|l|} \hline CGS \& Expenses & $30,000 & $150,000 \\ \hline Income from S. & & \\ \hline Income & & & $100,000 \\ \hline NCl & & & \\ \hline \end{tabular} Controlling Interest \begin{tabular}{|l|r|r|} \hline Retained Earnings Jan 1, 10 & $700,000 & $190,000 \\ \hline Dividends & 100,000 & 0 \\ \hline Retained Earnings Dec 31, 10 & & $290,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Cash & $120,000 & $30,000 \\ \hline Receivables & 90,000 & 70,000 \\ \hline Inventory & 100,000 & 100,000 \\ \hline Equipment (net) & 100,000 & 350,000 \\ \hline Patents & & 50,000 \\ \hline \end{tabular} Investment in A Goodwill Land Building (net) Accounts Payable Capital Stock \begin{tabular}{r|r} $126,000 & $50,000 \\ \hline 600,000 & 460,000 \end{tabular} Non-Controlling Interest Retained Earnings (12/31)