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Posted on Jul 28, 2024

Pee Company acquired 75% in See Company for $600,000 on Jan 1, 2019, when See had $500,000 capital stock and $200,000 retained camings. The excess

Pee Company acquired 75% in See Company for $600,000 on Jan 1, 2019, when See had $500,000 capital stock and $200,000 retained camings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $180,000 on Jan 1, 2019, when Bee had $200,000 capital stock and $50,000 retained carings. Sce acquired 30% in Bee on Jan 1, 2019 for $90,000, when Bee had $ 100,000 capital stock and $20,000 retained earnings. The excess of fair over book value relates to goodwill. During 2018, Pee Company sold goods to See Company at a profit of $30,000. This merchandise was sold during 2019. Bee Company sold merchandise that had cost $80,000 to See Company for $100,000 during 2019. Half of this merchandise is held by See at December 31, 2019. Required: Compute all missing and required data then prepare the consolidated financial statements for the year ended December 31, 2019. Consolidated See Debit Credit INCOME STATEMENT Sales 800,00 400,00 200,00 Eliminations Pee Bee 0 0 0 Income from See Income from Bee Cost of Sales (400,00 (150,00 (80,00 0) 0) 0) (100,00 (50,000 (20,00 0) 0) Other Expenses MI Expense See MI Expense Bee Net income 532,50 0 230,00 0 100,00 0 Retained Earnings 1/1/19 150,00 200,00 0 0 50,000 Less: Dividends (100,00 (50,0 (50,0000) 00) Retained Earnings 12/31/19 330,00 0 100,00 0 BALANCE SHEET: Cash 100,00 280,00 0 0 120,00 Accounts receivable 150,00 200,00 0 0 150,00 0 Inventories 100,00 0 120,00 0 90,000 Plant assets-net 200,00 300.00 0 0 340,00 0 Investment in See: 75% 1,0492 50 Investment in Bee: 60%+ 30% 294,00 110,00 0 0 Goodwill TOTAL ASSETS 1,893,2 1,010,0 $700,0 50 00 00 LIAB. & EQUITY Accounts payable 239,00 80,000 51.000 0 Capital Stock 1,000,0 00 600,00 549,00 0 0 Retained Earnings 330.00 0 100,00 0 12/31 NC Interest TOTAL LIAB. & EQUITY 1,893,2 1,010,0 $700.0 50 00 00 Pee Company acquired 75% in See Company for $600,000 on Jan 1, 2019, when See had $500,000 capital stock and $200,000 retained camings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $180,000 on Jan 1, 2019, when Bee had $200,000 capital stock and $50,000 retained carings. Sce acquired 30% in Bee on Jan 1, 2019 for $90,000, when Bee had $ 100,000 capital stock and $20,000 retained earnings. The excess of fair over book value relates to goodwill. During 2018, Pee Company sold goods to See Company at a profit of $30,000. This merchandise was sold during 2019. Bee Company sold merchandise that had cost $80,000 to See Company for $100,000 during 2019. Half of this merchandise is held by See at December 31, 2019. Required: Compute all missing and required data then prepare the consolidated financial statements for the year ended December 31, 2019. Consolidated See Debit Credit INCOME STATEMENT Sales 800,00 400,00 200,00 Eliminations Pee Bee 0 0 0 Income from See Income from Bee Cost of Sales (400,00 (150,00 (80,00 0) 0) 0) (100,00 (50,000 (20,00 0) 0) Other Expenses MI Expense See MI Expense Bee Net income 532,50 0 230,00 0 100,00 0 Retained Earnings 1/1/19 150,00 200,00 0 0 50,000 Less: Dividends (100,00 (50,0 (50,0000) 00) Retained Earnings 12/31/19 330,00 0 100,00 0 BALANCE SHEET: Cash 100,00 280,00 0 0 120,00 Accounts receivable 150,00 200,00 0 0 150,00 0 Inventories 100,00 0 120,00 0 90,000 Plant assets-net 200,00 300.00 0 0 340,00 0 Investment in See: 75% 1,0492 50 Investment in Bee: 60%+ 30% 294,00 110,00 0 0 Goodwill TOTAL ASSETS 1,893,2 1,010,0 $700,0 50 00 00 LIAB. & EQUITY Accounts payable 239,00 80,000 51.000 0 Capital Stock 1,000,0 00 600,00 549,00 0 0 Retained Earnings 330.00 0 100,00 0 12/31 NC Interest TOTAL LIAB. & EQUITY 1,893,2 1,010,0 $700.0 50 00 00