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Show me the steps to solve The individual financial statements for Abbey Company and Bellstar Company for the year ending December 3 1 , 2
Show me the steps to solve The individual financial statements for Abbey Company and Bellstar Company for the year ending December follow. Abbey acquired a percent interest in Bellstar on January in exchange for various considerations totaling $ At the acquisition date, the fair value of the noncontrolling interest was $ and Bellstars book value was $ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisitiondate fair value of $ This intangible asset is being amortized over years. Abbey uses the partial equity method to account for its investment in Bellstar. Abbey sold Bellstar land with a book value of $ on January for $ Bellstar still holds this land at the end of the current year. Bellstar regularly transfers inventory to Abbey. In it shipped inventory costing $ to Abbey at a price of $ During intraentity shipments totaled $ although the original cost to Bellstar was only $ In each of these years, percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $ at the end of Items Abbey Company Bellstar Company Sales $ $ Cost of goods sold Operating expenses Equity in earnings of Bellstar Net income $ $ Retained earnings, $ $ Net income above Dividends declared Retained earnings, $ $ Cash $ $ Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment net Total assets $ $ Liabilities $ $ Common stock Additional paidin capital Retained earnings, Total liabilities and equities $ $ Note: Parentheses indicate a credit balance. Required: Prepare a worksheet to consolidate the separate financial statements for Abbey and Bellstar. How would the consolidation entries in requirement a have differed if Abbey had sold a building on January with a $ book value cost of $ to Bellstar for $ instead of land, as the problem reports? Assume that the building had a year remaining life at the date of transfer.
Show me the steps to solve The individual financial statements for Abbey Company and Bellstar Company for the year ending December follow. Abbey acquired a percent interest in Bellstar on January in exchange for various considerations totaling $ At the acquisition date, the fair value of the noncontrolling interest was $ and Bellstars book value was $ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisitiondate fair value of $ This intangible asset is being amortized over years. Abbey uses the partial equity method to account for its investment in Bellstar.
Abbey sold Bellstar land with a book value of $ on January for $ Bellstar still holds this land at the end of the current year.
Bellstar regularly transfers inventory to Abbey. In it shipped inventory costing $ to Abbey at a price of $ During intraentity shipments totaled $ although the original cost to Bellstar was only $ In each of these years, percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $ at the end of
Items Abbey Company Bellstar Company
Sales $ $
Cost of goods sold
Operating expenses
Equity in earnings of Bellstar
Net income $ $
Retained earnings, $ $
Net income above
Dividends declared
Retained earnings, $ $
Cash $ $
Accounts receivable
Inventory
Investment in Bellstar
Land
Buildings and equipment net
Total assets $ $
Liabilities $ $
Common stock
Additional paidin capital
Retained earnings,
Total liabilities and equities $ $
Note: Parentheses indicate a credit balance.
Required:
Prepare a worksheet to consolidate the separate financial statements for Abbey and Bellstar.
How would the consolidation entries in requirement a have differed if Abbey had sold a building on January with a $ book value cost of $ to Bellstar for $ instead of land, as the problem reports? Assume that the building had a year remaining life at the date of transfer.
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