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Posted on Sep 28, 2024

Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings. The excess

Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $240,000 on Jan 1, 2019, when Bee had $250,000 capital stock and $50.000 retained earnings. See acquired 40% in Bee on Jan 1, 2019 for $80,000, 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 $180,000 to See Company for $200.000 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 Elimination Consolidated Pec Bee See Dehele INCOME STATEMENT Sales 000000000000000 Income from See Income from Bee Cost of Sales 300,000) 150.000 50.000) Other Expenses (100.000 50.000 50.000) MI Expense See MI Expense Bee Net Income Retained Earings 1/1/19 Less: Dividends Retained Earnings 12/31/19 452,000 240,000 100.000 150,000 $0.00 $0.000 (50.000 100.000 50.000) 190.000 100.000 BALANCE SHEET: Cash 200.000 280.000 130.000 1.34.00 S. 320.00 Accounts receivable 166,000 100.000 Inventories 300.000 200.000 Plant assets.net 200,000 100.000 investment in Ser: 75% 1.162.800 Lavestment in Bee. 606 307 344.000 100.000 Goodwill TOTAL ASSETS 1.372.000 1.100,000 66.000 LIAB & EQUITY Accounts payable Capital Stock Retained anings 12/31 NC Interest 800,000 80.000 ,000,000 $10,000 190,000 20.000 524.000 100.000 TOTAL LIAB & EQUITY Pee Company acquired 80% in See Company for $800,000 on Jan 1, 2019, when See had $700,000 capital stock and $200,000 retained earnings. The excess of fair over book value relates to the goodwill. Pee acquired 60% in Bee for $240,000 on Jan 1, 2019, when Bee had $250,000 capital stock and $50.000 retained earnings. See acquired 40% in Bee on Jan 1, 2019 for $80,000, 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 $180,000 to See Company for $200.000 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 Elimination Consolidated Pec Bee See Dehele INCOME STATEMENT Sales 000000000000000 Income from See Income from Bee Cost of Sales 300,000) 150.000 50.000) Other Expenses (100.000 50.000 50.000) MI Expense See MI Expense Bee Net Income Retained Earings 1/1/19 Less: Dividends Retained Earnings 12/31/19 452,000 240,000 100.000 150,000 $0.00 $0.000 (50.000 100.000 50.000) 190.000 100.000 BALANCE SHEET: Cash 200.000 280.000 130.000 1.34.00 S. 320.00 Accounts receivable 166,000 100.000 Inventories 300.000 200.000 Plant assets.net 200,000 100.000 investment in Ser: 75% 1.162.800 Lavestment in Bee. 606 307 344.000 100.000 Goodwill TOTAL ASSETS 1.372.000 1.100,000 66.000 LIAB & EQUITY Accounts payable Capital Stock Retained anings 12/31 NC Interest 800,000 80.000 ,000,000 $10,000 190,000 20.000 524.000 100.000 TOTAL LIAB & EQUITY