Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedPrepare 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 $510,880

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_2

Step: 3

blur-text-image_3

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

Accounting And Financial Management For Residential Construction

Authors: Emma Shinn

6th Edition

0867187816, 9780867187816

More Books

Students also viewed these Accounting questions