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PLEASE FILL IN ALL LINES ( DO NOT PIECE THEM TOGETHER ) FOR INCOME STATEMENT AND OTHER FINANCIAL STATEMENTS! PLEASE USE PICTURE PROVIDED! Purple Manufacturing
PLEASE FILL IN ALL LINES DO NOT PIECE THEM TOGETHER FOR INCOME STATEMENT AND OTHER FINANCIAL STATEMENTS! PLEASE USE PICTURE PROVIDED! Purple Manufacturing purchased percent of the ownership of Socks Corporation stock on January X at underlying book
value. At that date, the fair value of the noncontrolling interest was equal to percent of the book value of Socks Corporation. Purple
also purchased $ of Socks bonds at par value on December Socks sold the bonds on January at ; they
have a stated interest rate of percent. Interest is paid semiannually on June and December Assume Purple uses the fully
adjusted equity method.
On December X Socks sold a building with a remaining life of years to Purple for $ Socks had purchased the building
years earlier for $ It is being depreciated based on a year expected life.
Trial balances for the two companies on December are as follows:
Prepare a consolidated balance sheet for
Prepare a consolidated income statement for Purple Manufacturing purchased percent of the ownership of Socks Corporation stock on January X at underlying book value. At that date, the fair value of the noncontrolling interest was equal to percent of the book value of Socks Corporation. Purple also purchased $ of Socks bonds at par value on December X Socks sold the bonds on January X at ; they have a stated interest rate of percent. Interest is paid semiannually on June and December Assume Purple uses the fully adjusted equity method.
On December X Socks sold a building with a remaining life of years to Purple for $ Socks had purchased the building years earlier for $ It is being depreciated based on a year expected life.
Trial balances for the two companies on December X are as follows:
Item Purple Manufacturing Socks Corporation
Debit Credit Debit Credit
Cash $ $
Accounts Receivable
Inventory
Investment in Socks Corporation Bonds
Investment in Socks Corporation Stock
Depreciable Assets net
Interest Expense
Operating Expenses
Dividends Declared
Accounts Payable $ $
Bonds Payable
Bond Premium
Common Stock
Retained Earnings
Sales
Income from Socks Corporation
Total $ $ $ $
Required:
Prepare a consolidation worksheet for X in good form.
Prepare a consolidated balance sheet, income statement, and statement of changes in retained earnings for X
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