Revenue 950,000 Gain on Sale of Land 50,000 Loss on Sale of Equipment 5,000 Cost of Goods Sold 500,000 Depreciation Expense 100,000 Other Expenses 200,000 Total expenses 800,000 Consolidated Income 195,000 Parent's Equity income from Subsidiary 100,000 Subsidiary Net Income 20x6 100,000 Consolidated Net Income 195,000 B Retained Earnings Statement Parent's beginning R E from operations 500,000 Parent's Income from operations 195,000 Parent's Dividend to stockholders 10,000 Consolidated Retained Earnings 685,000 12 31 20x6 Cash 150,000 Acct Rec 200,000 Inventories 150,000 Land 25,000 Land 100,000 Buildings and Equipment 500,000 Goodwill 100,000 Total Debits 1,225,000 Acc Depreciation 200,000 Accts Payable 50,000 Bonds Payable 150,000 Common Stock 200,000 Paid in Capital 125,000 Retained Earnings 500,000 1,225,000 Additional Information A Push Corporation has 100 control of Summer Corporation on 01 02 20x7 B Push Corporation has $195,000 Consolidated Income for 20x7 C Push Corporation pays a $10,000 Dividend to stockholders D Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7 E Push Corporation sells land that it purchased in 20X1 for $50,000 to nonaffiliated for $100,000 F Summer Corporation purchases additional equipment for 200,000 at end of 20x7 G Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7 H Common Stock of $10 00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7 I Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000 K Land with a book value of $25,000 was sold for $20,000, a loss of $5,000 L Increase in Cash and Increase or decrease in cash balance Done after all entries performed M Account Receivable increased $100,000 N Inventory increased $100,000 O Increase in Accts Payable $100,000 P Accumulated Depreciation increased $100,000 Q Goodwill did not change in year R Paid In Capital did not change in year Debit Credit Push Corporation Balance Sheet Dates 12 31 20x6 12 31 20x7 Cash 150,000 140,000 10,000 Acct Rec 200,000 100,000 300,000 Inventories 150,000 100,000 250,000 Land 25,000 25,000 0 Land 100,000 50,000 50,000 Buildings and Equipment 500,000 350,000 850,000 Good will 100,000 100,000 Total Debits 1,225,000 1,560,000 Accounts Depreciation 200,000 100,000 300,000 Accts Payable 50,000 100,000 150,000 Bonds Payable 150,000 150,000 0 Common Stock 200,000 100,000 300,000 Paid in Capital 125,000 125,000 Retained Earnings 500,000 10,000 195,000 685,000 1,225,000 710,000 710,000 1,560,000 No entry required for cash flow statement Assumption is $100,000 Goodwill is after Eliminating Entry for Consolidation Consolidated Income on Retained Earnings R E Dividend No entry required for cash flow statement In Consolidation process, intercompany transactions are removed Increase in Cash Land Gain on Sale of land Land Additional Equipment Acquisition of Equipment Additional Equipment Acquisition of Equipment Increase in cash flow financing Common Stock Long Term Bonds Increase in financing retirement Increase in financing Loss on sale of Equipment Equipment Cash at end of cash flow process calculation Increase in cash Increase in Acct Rec Acct Rec Increase in Investment increase in inventory Increase in Accts payable Accounts Payable Push Corporation and Subsidaries Consolidated Statement of Cash Flows For the Year Ended December 31, 20x7 (Indirect Method) Cash Flows from Operating Activities Consolidated Net Income Noncash expenses, revenues,losses and gains included in income Depreciation Gain on sale of Land Loss on sale of land Changes in Operating Assets and Liabilities Increase in Acct Recievable Increase in Inventory increase in accts payable Net Cash provided by Operating Activities Cash Flows from Investing Activities Acquistion of Equipment Sale of Land Sale of Land B Net Cash used in Investing Activities Cash Flows from Financing Activities Dividends Paid Cash paid for Bond Retirement Cash received for Stock Issuance Net Cash used in Financing Activities Net Increase in Cash Cash at the beginning of the Year Cash at the end of the Year

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Revenue 950,000 Gain on Sale of Land 50,000 Loss on Sale of Equipment -5,000 Cost of Goods Sold 500,000 Depreciation Expense 100,000 Other Expenses 200,000

Revenue

950,000

Gain on Sale of Land

50,000

Loss on Sale of Equipment

-5,000

Cost of Goods Sold

500,000

Depreciation Expense

100,000

Other Expenses

200,000

Total expenses

800,000

Consolidated Income

195,000

Parent's Equity income from Subsidiary

100,000

Subsidiary Net Income 20x6

-100,000

Consolidated Net Income

195,000

B. Retained Earnings Statement

Parent's beginning R.E from operations

500,000

Parent's Income from operations

195,000

Parent's Dividend to stockholders

-10,000

Consolidated Retained Earnings

685,000

12/31/20x6

Cash

150,000

Acct Rec

200,000

Inventories

150,000

Land

25,000

Land

100,000

Buildings and Equipment

500,000

Goodwill

100,000

Total Debits

1,225,000

Acc Depreciation

200,000

Accts Payable

50,000

Bonds Payable

150,000

Common Stock

200,000

Paid in Capital

125,000

Retained Earnings

500,000

1,225,000

Additional Information

A.	Push Corporation has 100% control of Summer Corporation on 01/02/20x7.
B.	Push Corporation has $195,000 Consolidated Income for 20x7.
C.	Push Corporation pays a $10,000 Dividend to stockholders.
D.	Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7.
E.	Push Corporation sells land that it purchased in 20X1 for $50,000 to nonaffiliated for $100,000.
F.	Summer Corporation purchases additional equipment for 200,000 at end of 20x7.
G.	Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7.
H.	Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7.
I.	Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000.
K.	Land with a book value of $25,000 was sold for $20,000, a loss of $5,000.
L.	Increase in Cash and Increase or decrease in cash balance. Done after all entries performed.
M.	Account Receivable increased $100,000.
N.	Inventory increased $100,000.
O.	Increase in Accts Payable $100,000.
P.	Accumulated Depreciation increased $100,000.
Q.	Goodwill did not change in year.
R.	Paid In Capital did not change in year.

				Debit	Credit
Push Corporation Balance Sheet
Dates			12/31/20x6			12/31/20x7
	Cash		150,000		140,000	10,000
	Acct Rec		200,000	100,000		300,000
	Inventories		150,000	100,000		250,000
	Land		25,000		25,000	0
	Land		100,000		50,000	50,000
	Buildings and Equipment		500,000	350,000		850,000
	Good =will		100,000			100,000

		Total Debits	1,225,000			1,560,000

	Accounts Depreciation		200,000		100,000	300,000
	Accts Payable		50,000		100,000	150,000
	Bonds Payable		150,000	150,000		0
	Common Stock		200,000		100,000	300,000
	Paid in Capital		125,000			125,000
	Retained Earnings		500,000	10,000	195,000	685,000

			1,225,000	710,000	710,000	1,560,000

No entry required for cash flow statement. Assumption is $100,000 Goodwill is after Eliminating Entry for Consolidation.

Consolidated Income on

Retained Earnings

R.E

Dividend

No entry required for cash flow statement. In Consolidation process, intercompany transactions are removed.

Increase in Cash Land

Gain on Sale of land

Land

Additional Equipment

Acquisition of Equipment

Additional Equipment

Acquisition of Equipment

Increase in cash flow financing

Common Stock

Long Term Bonds

Increase in financing retirement

Increase in financing

Loss on sale of Equipment

Equipment

Cash at end of cash flow process calculation

Increase in cash

Increase in Acct Rec

Acct Rec

Increase in Investment

increase in inventory

Increase in Accts payable

Accounts Payable

Push Corporation and Subsidaries
Consolidated Statement of Cash Flows
For the Year Ended December 31, 20x7
(Indirect Method)


Cash Flows from Operating Activities
	Consolidated Net Income
		Noncash expenses, revenues,losses and gains included in income:
			Depreciation
			Gain on sale of Land
			Loss on sale of land
	Changes in Operating Assets and Liabilities
		Increase in Acct Recievable
		Increase in Inventory
		increase in accts payable

				Net Cash provided by Operating Activities

Cash Flows from Investing Activities
	Acquistion of Equipment
	Sale of Land
	Sale of Land B.
				Net Cash used in Investing Activities


Cash Flows from Financing Activities
	Dividends Paid
	Cash paid for Bond Retirement
	Cash received for Stock Issuance



				Net Cash used in Financing Activities

Net Increase in Cash
Cash at the beginning of the Year

Cash at the end of the Year