Review the Retained Earnings Sta in the consolidated balance tement (below) and explain why dividend declared for Sesnor Co. is $ Elimination) Entries Consolidated Balance Subsidiary Debit Retained Earnings 1/1Beg. Of Current Year $3,850,000 110,5000) $ 3,960,500 $ 3,200,000 3200,00 Sesnor Co. $450,000 Plexi Co. Sesnor Co. $450,000 s 212,500 ( 37,500 S 250,000 $ 102,750 $ 4,825,250 Complete the balance sheet. Subsidiany Sesnor Co Plexi Ca Debit NCI Balance Balance Sheet Assets $ 450,000 260,000 $750,000450,000 $ 875,000 $ 950,000 Accounts Receivable Inventory@12/31 Investment in Sub-Sesnor Co. Net Plant Assets 5,700,000 $ $3,850,000$ 3,450,000 $250,000 $1,000,000 $ 150,000$250,000 Other Assets Goodwill Difference Total Assets 512,025,000 6,360,000 Accounts Payable Other Liabilities 4,244,500 $1,150,000 $ 998,000 $ 325,000 $5,242,500 $1,475,000 Equity Common Stock Plexi Co Sesnor Co. $ 250,000 100,000 Plexi Co. Sesnor Co. 2400,000 900,000 $ 4,132,500$ 3,885,000 1/1N 12/31 Noncontrolling Interest Interest Total Equity $ 12,025,000 6360,000 stock of Sesnor Company on January 1, 2009 for $5,700,000 COST METHOD Credit Jan. 1, 2009 nt in Subsidiary Cash $5,700,000 Balance Shes Assets Accounts Receivable Net Plant Assets $120,000 120000 260,000 350,000 450,000 1,275,000 $950,00o 3,200,000 3,450,000 1,000,000 $ 1,000,000 $ 1,275,000 $3,200,000 Other Assets Total Assets 1,375,000 1,150,000 500,000 $ 325,000 Other Uabilities $750,000 Total iabilities Equity Common Stock (Par $1) 100,000 $ 100,000 900,000 $ 900,000 Retained Eamings 3,070,000 $ 3,885,000 Total Equity 4,070,000 S 5945,000 6360,000 8596|Ownership Total Implied $ 5,700,000 $ 1,005,882 6,705,882 $4,070,000 $2,635,882 Parent Fair Value Given Up Book Value Received $ 3,459,500 S 6 610,500 395,382 Difference Land Other Liabilities $ 2,240,500 $ $1,275,000 $ $ 212,500 S S 1,178,000$ 207,882 $ 1,178,000 225,000 1,500,000 37,500 $250,000 1,385,882 1,385,882 Goodwill 207,882 Balance During 2012, Sesnor Company declared dividends in the amount of During 2012, Sesnor Cormpany had net income in the amount of $250,000 935,000 212,500 Sesnor Company Retained Earnings as of 12/31/2011 was 3,200,000 APER (and related workpaper entries)THAT WOULD BE MADE IN THE PREPARATION OF PREPARE THE WORKP THE CONSOUDATED FINANCIAL STATEMENTS ON DECEMBER 31, 2012 the following workpaper entries are made: Workpaper Entry (O) Investment in Subsidiary-Sesnor Company 110,500 Retained Earnings 1/1Current Year Parent $ 110,500 strate in detail how the $110,500 (abo What does the following entry accomplish in the workpaper? Dividend Income 212,500 Dividend Declared-Sub-Sesnor Co. Review the entry below. Workpaper Entry (2) Common Stock-Sesnor Co. APIC-Sesnor Co. Retained Earnings-Sesnor Co. Difference Credit $100,000 900,000 $3,200,000 $2,635,882 Investment in Subsidiary-Sesnor Company NCI $ 5,810,500 $1,025,382 how how the credit to Investment in Subsidiary and NCI (above) is calculated in the space provided below. Complete the entry to allocate the difference below. Workpaper Entry (3) Plexi Co. and Subsidiary Consolidated Statements Workpaper For the Year Ended December 31, 2012 ParentSubsidiary Consolidated Balance Plexi CoSesnorCo. $ 9,500,000 5,500,000 S 9,712,SO $ 5,500,00 Credit Dividend Income 5 212,500 5s 212,500 Inventory 11 $ 750,000 $ 8s0,000 1,600,000 $13,800,000 Inventory 12/31 Cost of Goods Sold $7,975,000$4,000,000 Seliling Expense Other Expenses $ 580,000 $ 275,000 $ 715,000 Total Expenses Income $13545,000 $732 500 314,750 Demonstrate (below) how is the $140,250 in the NCI column calculated? Review the Retained Earnings Sta in the consolidated balance tement (below) and explain why dividend declared for Sesnor Co. is $ Elimination) Entries Consolidated Balance Subsidiary Debit Retained Earnings 1/1Beg. Of Current Year $3,850,000 110,5000) $ 3,960,500 $ 3,200,000 3200,00 Sesnor Co. $450,000 Plexi Co. Sesnor Co. $450,000 s 212,500 ( 37,500 S 250,000 $ 102,750 $ 4,825,250 Complete the balance sheet. Subsidiany Sesnor Co Plexi Ca Debit NCI Balance Balance Sheet Assets $ 450,000 260,000 $750,000450,000 $ 875,000 $ 950,000 Accounts Receivable Inventory@12/31 Investment in Sub-Sesnor Co. Net Plant Assets 5,700,000 $ $3,850,000$ 3,450,000 $250,000 $1,000,000 $ 150,000$250,000 Other Assets Goodwill Difference Total Assets 512,025,000 6,360,000 Accounts Payable Other Liabilities 4,244,500 $1,150,000 $ 998,000 $ 325,000 $5,242,500 $1,475,000 Equity Common Stock Plexi Co Sesnor Co. $ 250,000 100,000 Plexi Co. Sesnor Co. 2400,000 900,000 $ 4,132,500$ 3,885,000 1/1N 12/31 Noncontrolling Interest Interest Total Equity $ 12,025,000 6360,000 stock of Sesnor Company on January 1, 2009 for $5,700,000 COST METHOD Credit Jan. 1, 2009 nt in Subsidiary Cash $5,700,000 Balance Shes Assets Accounts Receivable Net Plant Assets $120,000 120000 260,000 350,000 450,000 1,275,000 $950,00o 3,200,000 3,450,000 1,000,000 $ 1,000,000 $ 1,275,000 $3,200,000 Other Assets Total Assets 1,375,000 1,150,000 500,000 $ 325,000 Other Uabilities $750,000 Total iabilities Equity Common Stock (Par $1) 100,000 $ 100,000 900,000 $ 900,000 Retained Eamings 3,070,000 $ 3,885,000 Total Equity 4,070,000 S 5945,000 6360,000 8596|Ownership Total Implied $ 5,700,000 $ 1,005,882 6,705,882 $4,070,000 $2,635,882 Parent Fair Value Given Up Book Value Received $ 3,459,500 S 6 610,500 395,382 Difference Land Other Liabilities $ 2,240,500 $ $1,275,000 $ $ 212,500 S S 1,178,000$ 207,882 $ 1,178,000 225,000 1,500,000 37,500 $250,000 1,385,882 1,385,882 Goodwill 207,882 Balance During 2012, Sesnor Company declared dividends in the amount of During 2012, Sesnor Cormpany had net income in the amount of $250,000 935,000 212,500 Sesnor Company Retained Earnings as of 12/31/2011 was 3,200,000 APER (and related workpaper entries)THAT WOULD BE MADE IN THE PREPARATION OF PREPARE THE WORKP THE CONSOUDATED FINANCIAL STATEMENTS ON DECEMBER 31, 2012 the following workpaper entries are made: Workpaper Entry (O) Investment in Subsidiary-Sesnor Company 110,500 Retained Earnings 1/1Current Year Parent $ 110,500 strate in detail how the $110,500 (abo What does the following entry accomplish in the workpaper? Dividend Income 212,500 Dividend Declared-Sub-Sesnor Co. Review the entry below. Workpaper Entry (2) Common Stock-Sesnor Co. APIC-Sesnor Co. Retained Earnings-Sesnor Co. Difference Credit $100,000 900,000 $3,200,000 $2,635,882 Investment in Subsidiary-Sesnor Company NCI $ 5,810,500 $1,025,382 how how the credit to Investment in Subsidiary and NCI (above) is calculated in the space provided below. Complete the entry to allocate the difference below. Workpaper Entry (3) Plexi Co. and Subsidiary Consolidated Statements Workpaper For the Year Ended December 31, 2012 ParentSubsidiary Consolidated Balance Plexi CoSesnorCo. $ 9,500,000 5,500,000 S 9,712,SO $ 5,500,00 Credit Dividend Income 5 212,500 5s 212,500 Inventory 11 $ 750,000 $ 8s0,000 1,600,000 $13,800,000 Inventory 12/31 Cost of Goods Sold $7,975,000$4,000,000 Seliling Expense Other Expenses $ 580,000 $ 275,000 $ 715,000 Total Expenses Income $13545,000 $732 500 314,750 Demonstrate (below) how is the $140,250 in the NCI column calculated