Problem 5-3 (LO 2) 80%, cost method, straight-line bonds, fixed asset sale. On January 1, 2013, Appliance Outlets had the following balances in its stockholders equity counts Common Stock ($10 par). $800.000; Paid-in Capital in Excess of Par, S625.000 and Retained Earnings, $450,000. General Appliances acquired 64.000 shares of Appliance ents olla 31. 2012. Round all computations to the Required Oman of start Outlets common stock for $1.700.000 on that date. Any of OVET books Appliance Outles issued $500.000 of 8-year. 1196 bonds on December 31, 2012. The on January 1. 2015, for $256.000. Both companies use the straight-line method of an bonds sold for $476.000. General Appliances purchased one-half of these bonds in the value of $167.500, remaining life of 10 years, and $30.000 salvage value, for $195.000. "The On July 1, 2016, General Appliances sold to Appliance Outlets an old building with a bo building is being depreciated on a straight-line basis. Appliance Outlets paid $20,000 inch ance, and principal payments are due annually beginning July 1. 2017. (For convenience the and signed a mortgage note with its parent for the balance. Interest, at 1196 of the unpaid attributed to goodwill tion of premiums and discounts. mortgage -term portions.) The trial balances of the two companies at December 31, 2016, were as follows: B Appliance Oul 72.625 105.000 900.000 General Appliances 404.486 752.500 9,625 1,950,000 1,700,000 254,000 175,000 9,000,000 (1,695,000) (670,000) (18,333) 12,000,000) 10,470 2.950,000 1940,000 180.000 19.625 (500,000 12,000 (175,000 (3,200,000) Cash Accounts Receivable (net) Interest Receivable. Inventory Investment in Appliance Outlets Investment in 11% Bonds. Investment in Mortgage Property, Plant, and Equipment Accumulated Depreciation Accounts Payable Interest Payable Bonds Payable (11%) Discount on Bonds Payable Mortgage Payable. Common Stock ($5 por) Common Stock ($10 par) Paid In Capital in Excess of Par Retained Earnings, January 1, 2016. Sales Gain on Sale of Building Interest Income. Dividend Income Cost of Goods Sold Depreciation Expense Interest Expense. Other Expenses Dividends Declared Totals (800,000 1625,000 170,000 13,000,000 (4,550,000) 11,011,123) 19,800,000) (27,500) (36,125) (48,000) 4,940,000 717,000 223,000 2,600,000 320,000 1,700,000 95,950 67,544 936,506 60,000 Prepare the worksheet necessary to produce the consolidated financial statements of General Appliances and its subsidiary for the year ended December 31, 2016. Include the determination and distribution of excess and income distribution schedules. 80%, cost method, straight-line bonds, fixed asset sale. On January 1, 2013, Appliance Outlets had the following balances in its stockholders' equity accounts: Common Stock ($10 par), $800,000; Paid-in Capital in Excess of Par, $625,000; and Retained Earnings, $450,000. General Appliances acquired 64,000 shares of Appliance Outlets' common stock for $1,700,000 on that date. Any excess of cost over book value was attributed to goodwill Appliance Outlets issued $500,000 of 8-year, 11% bonds on December 31, 2012. The bonds sold for $476,000. General Appliances purchased one-half of these bonds in the market on January 1, 2015, for $256,000. Both companies use the straight-line method of amortization of premiums and discounts On July 1, 2016. General Appliances sold to Appliance Outlets an old building with a book value of $167.500, remaining life of 10 years, and $30,000 salvage value, for $195,000. The building is being depreciated on a straight-line basis. Appliance Outlets paid $20,000 in cash and signed a mortgage note with its parent for the balance. Interest, at 11% of the unpaid balance, and principal payments are due annually beginning July 1, 2017 (For convenience, the mortgage balances are not divided into current and long-term portions.) The trial balances of the two companies at December 31, 2016. were as follows: ON Chapter 5. Problem 3P 3 Bookmarks Show all steps: wwwwwwwwwwwwww principal payments are due annually beginning July 1, 2017. (For convenience, the mortgage balances are not divided into current and long-term portions.) The trial balances of the two companies at December 31, 2016, were as follows: General Appliance Appliances Outlets Cash 404,486 72,625 Accounts Receivable (net 752,500 105,000 Interest Receivable 9,625 Inventory 1,950,000 900,000 Investment in Appliance Outlets 1,700,000 Investment in 11% Bonds. 254,000 Investment in Montgoge 175,000 Property, Plant, and Equipment 9,000,000 2,950,000 Accumulated Depreciation 11,695,000 1940,000) Accounts Payable (670,000) (80,000) Interest Payable 118,333) 19,625) Bonds Payable (11%) 12,000,000) (500,000) Discount on Bonds Payable 10,470 12,000 Mortgage Poyable (175,000) Common Stock ($5 por) 13,200,000 Common Stock ($10 por (800,000) Paid-In Capital in Excess of Par 14,550,000) 1625,000) Retained Earnings, January 1, 2016. (1,011,123) 1770,000) Sales 19,800,000 13,000,000) Gainon Sale of Building 127,500) Interest Income (36,125) Dividend Income (48,000) Cost of Goods Sold 4,940,000 1,700,000 Depreciation Expense 717.000 95,950 Interest Expense 223,000 67,544 Other Expenses 2,600,000 936,506 Dividends Declared 320 000 60,000 Totals 0 Prepare the worksheet necessary to produce the consolidated financial statements of General Appliances and its subsidiary for the year ended December 31, 2016 Include the determination and distribution of excess and income distribution schedules