Please help me with the ones I got wrong. I believe they are from Entry S, A, and *C. I'm also not sure why I'm getting retained earnings wrong. Thanks!
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.90 per share on January 1, 2014. The remaining 20 percent of Devine's shares also traded actively at $7.90 per share before and after Holtz's acquisition. An appraisal made on that date determined that all book values appropriately reected the fair values of Devine's underlying accounts except that a building with a 5-year life was undervalued by $49,500 and a fully amortized trademark with an estimated 10-year remaining life had a $78,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $343,500. Following are the separate nancial statements for the year ending December 31, 2015: Holtz Devine, Corporation Inc. Sales $ (740,000) $(291,750) Cost of goods sold 235,000 121,000 Operating expenses 327,000 78,750 Dividend income (16,000) 0 Net income 55 (194,000) $ (92,000) Retained earnings, 111115 $ (790,000) $(413,500) Net income (above) (194,000) (92,000) Dividends declared 90,000 20,000 Retained earnings, 12131l15 $ (894,000) $(485,500) Current assets $ 293,000 $ 160,500 Investment in Devine, Inc 632,000 0 Buildings and equipment (net) 685,000 486,000 Trademarks 169,000 175,000 Total assets $ 1,779,000 $ 821,500 Liabilities $ (565,000) $(236,000) Common stock (320,000) (100,000) Retained earnings, 12131115 (above) (894,000) (485,500) Total liabilities and equities $(1,779,000) $(821,500) ' At year-end, there were no intra-entity receivables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2015. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) Sales (740,000) (291,750) (1,031,750) 0 Cost of goods sold 235,000 121,000 356,000 0 Operating expenses 327,000 78,750 17,700 0 423,450 0 Dividend income (16,000) 16,000 0 0 0 Separate company net income (194,000) (92,000) Consolidated net income (252,300) NCI in consolidated net income (14,860) 0 14,860 0 Holtz's interest in consolidated net income (237,440) Retained earnings, 111 (790,000) (413,500) 413,500 0 44,000 6 (834,000) 0 Net income (194,000) (92,000) (237,440) 0 Dividends declared 90,000 20,000 16,000 0 4,000 0 90,000 0 Retained earnings, 12/31 (894,000) (485,500) (981,440) Current assets 293,000 160,500 453,500 0 lnvestrnent in Devine 632,000 44,000 6 673,840 0 0 0 Buildings and equipment (net) 685,000 486,000 39,600 0 9,900 0 1,200,700 0 Trademarks 169,000 175,000 70,200 0 7,800 0 406,400 0 Goodwill 0 0 219,000 0 219,000 0 Total assets 1,779,000 821,500 2,279,600 Liabilities (565,000) (236,000) (801,000) 0 Common stock (320,000) (100,000) 100,000 0 (320,000) 0 Retained earnings, 12/31 (894,000) (485,500) (834,000) a NCI in Devine, 1I1 191,860 6 (191,860) 9 NCI in Devine, 12/31 (202,720) (202,720) 9 Total liabilities and equities (1 ,779,000) (821 ,500) 920,000 943,400 (2,157,720)
