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Prepare the consolidation entries needed to complete a consolidated worksheet for 20x4 Punk Corporation purchased 90 percent of Soul Company's voting common shares on January
Prepare the consolidation entries needed to complete a consolidated worksheet for 20x4
Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $88,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $92,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows: Soul Company Debit Credit $ 50,600 88,000 257,000 Item Cash & Receivables Inventory Buildings & Equipment Investment in Soul Company Stock Investment in Soul Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income Income from Soul Company Stock Total Punk Corporation Debit Credit $ 36,000 177,000 406,000 103,248 89,600 82,000 20,000 15,280 30,000 $135,000 128,200 188,000 75,800 15,000 4,480 20,000 $ 75,000 116,280 88,000 1,600 66,000 36,000 128,000 106,000 225,000 143,000 4,480 29,448 $959,128 $959,128 $959, 128 $ 510,880 $510,880Step by Step Solution
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