Question
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company contained the following summarized amounts: PINT CORPORATION AND SALOON
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company contained the following summarized amounts:
PINT CORPORATION AND SALOON COMPANY | ||
---|---|---|
Balance Sheets | ||
December 31, 20X8 | ||
Pint Corporation | Saloon Company | |
Assets | ||
Cash and Receivables | $ 100,000 | $ 41,000 |
Inventory | 153,000 | 105,000 |
Buildings and Equipment (net) | 317,000 | 288,000 |
Investment in Saloon Company | 228,700 | |
Total Assets | $ 798,700 | $ 434,000 |
Liabilities and Equity | ||
Accounts Payable | $ 82,700 | $ 49,000 |
Common Stock | 188,000 | 137,000 |
Retained Earnings | 528,000 | 248,000 |
Total Liabilities and Equity | $ 798,700 | $ 434,000 |
Pint acquired the shares of Saloon Company on January 1, 20X7. On December 31, 20X8, assume Pint sold inventory to Saloon during 20X8 for $110,000 and Saloon sold inventory to Pint for $301,000. Pints balance sheet contains inventory items purchased from Saloon for $100,000. The items cost Saloon $60,000 to produce. In addition, Saloons inventory contains goods it purchased from Pint for $32,000 that Pint had produced for $19,200. Assume Saloon reported net income of $74,000 and dividends of $14,800.
Required:
Prepare all consolidation entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.
Consolidation Worksheet Entries Note: Enter debits before credits. Consolidation Worksheet Entries Record the entry to defer this year's unrealized profit on inventory transfers. Note: Enter debits before creditsStep by Step Solution
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