Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me find asap a. Compute the EOY non controlling interest equity balance b. prepare consolidation etiries for the year ending Dec 31 Thank

please help me find asap
a. Compute the EOY non controlling interest equity balance
b. prepare consolidation etiries for the year ending Dec 31
Thank you!! image text in transcribed
In January 1, 2015, Springfield Company acquired 30% interest in Lincoln Company for a purchase price that was $350,000 over the book value of Lincoln's Stockholders' Equity on the acquisition date. Spring uses the equity method to account for its investment in Lincoln Springtield assigned the acquisition date AAD as follows: MP tems Initial Fair value Useful Life (years) Patent 200,000 10 Goodwill 150,000 Indefinite $350,000 Lincoln se inventory to Springfield (upstream which includes that inventory in products that it (Springfield), ultimately sells to customers outside of the controlled group. You have compiled the following data as of 2020 and 2021 2020 2021 transfer price for wentary S305,500 $984,500 ale Cost of goods sold (269,5001 (316.500) Gross profit $ 38,000 $40,000 Inventory remaining 25% 35% Gross protit deterred 50,000 $14,000 EOV Receivable Payable $55,000 $ 65,000 The inventory not remaining at the end of the year has been sold outside of the controlled group Springfield and Lincoln report the following financial statements at December 31, 2021 Income Statement Springfield Lincoln Sales $5,660,000 31,160,000 Cost of goods sold 3.830.000 607,500) Cross Profit 7830,000 472,500 income foss) from 585,600 subsidiary Operating expenses 1.045.2001 1215, 5000 Net income 5970,400 257,000 Statement of Retained Earnings Springfield DOY Retained Earnings 56,464,800 Net income 970,400 Dividends (106,400) FOY Betained Earings 37,329,800 Lincoln 52.385.000 257,000 (25,000) $2617.000 Balance Sheet Springfield Lincoln Assets Cash Accounts receivable Inventory Equity Investment PPEN 978,400 5 474,200 142,300 702,700 1,516.400 622.900 2,571,200 5,934,800 1802,300 $12.142.100 $3,602,100 Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Common Stock APIC Retained Earning 689,700 2,054,000 853,000 1,215,000 7,329,800 $12.142.100 5 206.000 379.500 92.100 308,900 2,617.000 33602,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategy, Value And RiskThe Real Options Approach

Authors: J. Rogers

2nd Edition

0230577377, 9780230577374

More Books

Students also viewed these Accounting questions

Question

a. Where is the person employed?

Answered: 1 week ago

Question

6 Explain the expectancy theory of motivation.

Answered: 1 week ago