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The following balance sheets have been prepared on December 31 , Year 13 for Barbara Corp. and Joel Inc. Additional Information Barbara uses the cost

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The following balance sheets have been prepared on December 31 , Year 13 for Barbara Corp. and Joel Inc. Additional Information Barbara uses the cost method to account for its 50% interest in Joel, which it acquired on January 1 , Year 10 . On that date, Joel's retained earnings were $20 and common shares $40. The acquisition differential was fully amortized by the end of Year 13. Barbara sold Land to Joel during Year 12 and recorded a $15 gain on the sale. At December 31 , Year 13, Barbara's inventory contained $50 of merchandise purchased from Joel of which $20 remained unpaid at year end. Joel charges a 20% profit margin. Both companies are subject to a tax rate of 20%. Required a) Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming Barbara's investment in Joel is a control investment. Required a) Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming Barbara's investment in Joel is a control investment. b) Prepare a Balance Sheet for Barbara on December 31, Year 13 assuming Barbara's Investment in Joel is a joint venture investment. Show calculations for Consolidated REs for parts a. and b. For part b, show calculation for Investment in Joel. Hints: total assets a. $840; b. $705. The following balance sheets have been prepared on December 31 , Year 13 for Barbara Corp. and Joel Inc. Additional Information Barbara uses the cost method to account for its 50% interest in Joel, which it acquired on January 1 , Year 10 . On that date, Joel's retained earnings were $20 and common shares $40. The acquisition differential was fully amortized by the end of Year 13. Barbara sold Land to Joel during Year 12 and recorded a $15 gain on the sale. At December 31 , Year 13, Barbara's inventory contained $50 of merchandise purchased from Joel of which $20 remained unpaid at year end. Joel charges a 20% profit margin. Both companies are subject to a tax rate of 20%. Required a) Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming Barbara's investment in Joel is a control investment. Required a) Prepare a Consolidated Balance Sheet for Barbara in good format on December 31, Year 13 assuming Barbara's investment in Joel is a control investment. b) Prepare a Balance Sheet for Barbara on December 31, Year 13 assuming Barbara's Investment in Joel is a joint venture investment. Show calculations for Consolidated REs for parts a. and b. For part b, show calculation for Investment in Joel. Hints: total assets a. $840; b. $705

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