SOLVE FOR THE BLANKS IN THE "CORRECTED" COLUMN

A B C D Problem 2. The accountant for Cornell Crummy Consolidated Companies successfully completed the consolidation process for the company. Well, almost. She forgot to elminate the intercompany inventory and equipment sales. She is new to the company and didn't follow last year's workpapers because if she had, she would have noticed that they correctly eliminated the intercompany inventory sales that year. Parent's ownership of Subsidiary Dividends paid to minority interests in 20X2 90.00% 2,600 Upstream intercompany inventory sales Sales Cost of goods sold Ending inventory 20X1 110,000 77,000 23,000 20X2 120,000 81,600 25,000 Upstream intercompany sales of equipment Cost of the equipment Accumulated depreciation Sales price Remaining useful life The sale took place on January 1, 20X2 78,000 59,000 48,000 10 Consolidated Income Statement 20X2 Corrected Sales $ 952,100 Gain on sale of equipment 29,000 Cost of goods sold 438,000 Salary expense 266,600 Marketing expense 85,700 Depreciation expense 55,200 Amortization expense 19,500 Interest expense 14,900 Minority interest 11,900 Net income 89,300 Consolidated Statement of Retained Earning: 20X2 Corrected Beginning retained earnings $ 102,610 Net income 89,300 Dividends declared (13,400) Ending retained earnings $ 178,510 A B Problem 2. Consolidated Balance Sheet 20X1 20X2 Corrected Cash $ 62,600 $ 70,110 Accounts receivable 104,700 117,260 Inventory 48,200 45,310 Equipment 557,800 658,200 Accumulated depreciation (66,900) (63,100) Patent 97,700 78,200 Goodwill 72,000 72,000 Total $ 876,100 $ 977,980 Accounts payable $ 125,800 $ 145,480 1,600 1,790 Interest payable Salaries payable 29,300 27,540 Marketing payable 9,400 10,530 Dividends payable 2,000 2,240 Note payable 298,000 253,300 Common stock 98,300 109,100 Additional paid-in capital 161,500 185,700 Minority interest 53,800 63,790 Retained earnings 96,400 178,510 Total $ 876,100 $ 977,980