Please DONT change the numbers already given in the excel sheet just fill in the blank spaces needed.
On January 1, 2018, PPP Company purchased 80% of SSS Company for $960,000. At that time SSS had capital stock outstanding of $400,000 and retained earnings of $400,000. The book value and the value implied are equal with exception of plant and equipment. At the end of 2018, PPP Company had in its ending inventory $54,000 of merchandise it had purchased from SSS Company during the year. SSS Company sold the merchandise at 20% above cost. During 2019, PPP Company sold merchandise to SSS Company for $300,000 at a markup of 20% of the selling price. At December 31, 2019, SSS still had merchandise that it purchased from PPP Company for $78.000 in its inventory. Financial data for 2019 are presented here: PPP Company SSS Company Sales $1,385,000 $720,000 Equity in Subsidiary Income 153,600 Total Revenue 1538,600 720,000 Cost of Goods Sold: Beginning Inventory 210,000 155,000 Purchases 875,000 360,000 Cost of Goods Available 1,085.000 515,000 Less: Ending Inventory 400,000 225.000 Cost of Goods Sold 685.000 290,000 Other Expense 225,000 216,000 Total Cost and Expense 910,000 Net Income S628,600 $214,000 1/1 Retained Earnings 1,419,500 450,000 Net Income 628,600 216,000 Dividends Declared (40,000) (30,000) 31/12 Retained Earnings $2,008,100 $634,000 Cash 90.000 65,000 Account Receivables 297,000 85,000 Inventory 400,000 225,000 Investment in SSS Company 1.138,000 Plant and Equipment (net) 880,000 540,000 Other Assets 384,0000 230,000 Total Assets $3,189.000 $1,145,000 Account Payable 24,300 25.000 Other Current Liabilities 95,000 86,000 Common Stock 1,061,600 400,000 Retained Earnings 2,008,100 634,000 Total Liabilities and Equity S3,189,000 S1,145,000 Required:Prepare the consolidated statements workpaper for the year ended December 31, 2019. 506,000 PPP COMPANY AND SUBSIDIARY Consolidated Statement Workpaper For the Year Ended December 31, 2019 Perry Company Selby Company Einds Noncontrolling Interest Consolidated Balances De C 720,000 1,385.000 153,600 1,538,600 720,000 INCOME STATEMENT Sales Equity in subsidiary income Total revenue Cost of goods sold Beginning inventory Purchases Cost of goods available Less ending inventory Cost of goods sold Other expenses Total Cost & Expense NetConsolidated income Noncontroling Interest in income Net Income to retained earnings 210,000 875,000 1,085,000 400,000 685,000 225,000 910,000 628,600 155,000 350.000 515.000 225,000 290,000 216.0001 506,000 214,000 628,600 214,000 STATEMENT OF RETAINED EARNINGS 1/1Retained Earnings: Perry Company Selby Company 1,419,500 450,000 628,600 214,000 -40.000 Net income from above Dividends declared Perry Company Selby Company 12/31 Retained Earrings to balance sheet -30,000 2,008,100 634,000 Eminations Perry Company Selby Company Noncontrolling Interest Consolidated Balances Dr. CE BALANCE SHEET Cash Accounts Receivable Inventory Investment in Selby Company 90,000 297.000 400.000 1,076,400 65,000 85.000 225,000 Difference between implied & book value Plant and equipment 880,000 540,000 Other assets Total assets 384,000 3,127 4001 230,000 1,145,000 24,300 95,000 25,000 86,000 Accounts Payable Other liabilities Capital Stock Perry Company Selby Company Retained Earnings from above 1/1 Noncontrolling interest 1,000,000 2,008,100 400,000 634.000 12/31 Noncontrolling Interest Total liabilities & equity 3,127.400 1.145,000
