PROUD CORPORATION AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X3 Total expenses 0 Consolidated net income 0 Income to controlling interest $ 0 PROUD CORPORATION AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 20X3 Retained Earnings, January 1, 20X3 Income to Controlling Interest, 20X3 $ 0 Dividends Declared, 20X3 Retained Earnings, December 31, 20X3 c. Prepare a consolidated balance sheet, Income statement, and retained earnings statement for 20X3. (Amounts to be deducted should be indicated with a minus sign.) PROUD CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X3 Assets $ Total Assets Liabilities Stockholders' Equity: Controlling Interest Total Controlling Interest Total Stockholder's equity Total Liabilities and Stockholders' Equity PROUD CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X3 Consolidation Entries Proud Corp. Spirited Co. DR CR Consolidated Income Statement Sales S Ds 0 $ 0 $ 0 $ OS 0 S 0$ 0 $ 0 0 0 0 $ 0 S OS O $ 0 $ 0 Hehet Less: Depreciation expense Less: Other expenses Income from Spirited Co. Consolidated Net Income NCI in Not income Contul Controlling Interest in Net Income HA Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Current assets Depreciable assets Less: Accumulated depreciation Investment in Spirited Co. Total Assets habilities and Llabilities and Equity Current abilities Long-ler det! Common stock Common stock Retained earnings NCI IN NA of Spirited Co. Total Liabilities and Equity $ S DS 0 $ a $ 0 0 D ol $ 0 S 0 S 0 0 $ 0 $ 0 Required: a. Prepare all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry, Note: Enter debits before credits Event Accounts Debit Credit 2 Record entry Clear entry view consolidation entries Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date, Proud uses the equity method in accounting for its ownership of Spirited during 20X3. On December 31, 20X3, the trial balances of the two companies are as follows: Item Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common stock Retained Earnings Sales Incone from Spirited Company Proud Corporation Debit Credit $190,000 511,000 108,320 22,000 104,000 40,000 $ 163,000 48.000 108, 720 198,000 229,000 200,000 29,600 $925, 320 $975, 320 $ Spirited Company Debit Credit $109,000 309,000 12,000 71,000 15,600 S 60,000 38,000 184,600 $2,000 32,000 120,000 $516,600 $516,600 Required: a. Prepare all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits Event Accounts Debit Credit 1
