Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The given information is as follows: Please complete a consolidation worksheet along with the consolidation entries for Travers Company and its subsidiaries Travers Company purchased

The given information is as follows:

image text in transcribedimage text in transcribed

Please complete a consolidation worksheet along with the consolidation entries for Travers Company and its subsidiaries

Travers Company purchased ownership in Yarrow Company Acquisition cost paid by Travers Assessed fair value of noncontrolling interest Excess purchase price attributed to customer list to be amortized over years Yarrow Company purchased ownership in Stookey Company Acquisition cost paid by Yarrow Assessed fair value of noncontrolling interest Excess purchase price attributed to copyright with a remaining life of: Portion of operational earnings Travers pays as cash dividends Reported income totals for 2017 Travers Company Yarrow Company Stookey Company Inventory transferred to Yarrow since takeover: 2017 2018 Portion of inventory carried into succeeding year Effective tax rate for all companies \begin{tabular}{lc} & 90% \\ $ & 720,000 \\ $ & 80,000 \\ & \\ & 15 years \\ & \\ & 80% \\ $ & 344,000 \\ $ & 86,000 \\ & \\ & 10 years \\ & 40% \\ & \\ & \\ & 300,000 \\ $ & 160,000 \\ $ & 120,000 \\ & \\ $ & 80,000 \\ $ & 100,000 \\ & 20% \\ & 45% \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Sales } & \multicolumn{2}{|c|}{\begin{tabular}{c} Travers \\ Company \\ 12/31/2018 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Yarrow \\ Company \\ 12/31/2018 \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Stookey \\ Company \\ 12/31/2018 \\ \end{tabular}} \\ \hline & $ & (900,000) & $ & (600,000) & $ & (500,000) \\ \hline Cost of goods sold & & 480,000 & & 320,000 & & 260,000 \\ \hline Operating expenses & & 100,000 & & 80,000 & & 140,000 \\ \hline Net income & $ & (320,000) & $ & (200,000) & $ & (100,000) \\ \hline Retained earnings, 1/1/18 & $ & (700,000) & $ & (600,000) & $ & (300,000) \\ \hline Net income & & (320,000) & & (200,000) & & (100,000) \\ \hline Dividends declared & & 128,000 & & - & & - \\ \hline Retained earnings, 12/31/18 & $ & (892,000) & $ & (800,000) & $ & (400,000) \\ \hline Current assets & $ & 444,000 & $ & 380,000 & $ & 280,000 \\ \hline Investment in Yarrow Company & & 720,000 & & - & & - \\ \hline Investment in Stookey Company & & - & & 344,000 & & - \\ \hline Land, buildings, and equipment (net) & & 949,000 & & 836,000 & & 520,000 \\ \hline Total assets & $ & 2,113,000 & $ & 1,560,000 & $ & 800,000 \\ \hline Liabilities & $ & (721,000) & $ & (460,000) & $ & (200,000) \\ \hline Common stock & & (500,000) & & (300,000) & & (200,000) \\ \hline Retained earnings, 12/31/18 & & (892,000) & & (800,000) & & (400,000) \\ \hline Total liabilities and equities & & (2,113,000) & & (1,560,000) & $ & (800,000) \\ \hline \end{tabular} Travers Company purchased ownership in Yarrow Company Acquisition cost paid by Travers Assessed fair value of noncontrolling interest Excess purchase price attributed to customer list to be amortized over years Yarrow Company purchased ownership in Stookey Company Acquisition cost paid by Yarrow Assessed fair value of noncontrolling interest Excess purchase price attributed to copyright with a remaining life of: Portion of operational earnings Travers pays as cash dividends Reported income totals for 2017 Travers Company Yarrow Company Stookey Company Inventory transferred to Yarrow since takeover: 2017 2018 Portion of inventory carried into succeeding year Effective tax rate for all companies \begin{tabular}{lc} & 90% \\ $ & 720,000 \\ $ & 80,000 \\ & \\ & 15 years \\ & \\ & 80% \\ $ & 344,000 \\ $ & 86,000 \\ & \\ & 10 years \\ & 40% \\ & \\ & \\ & 300,000 \\ $ & 160,000 \\ $ & 120,000 \\ & \\ $ & 80,000 \\ $ & 100,000 \\ & 20% \\ & 45% \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Sales } & \multicolumn{2}{|c|}{\begin{tabular}{c} Travers \\ Company \\ 12/31/2018 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Yarrow \\ Company \\ 12/31/2018 \\ \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{c} Stookey \\ Company \\ 12/31/2018 \\ \end{tabular}} \\ \hline & $ & (900,000) & $ & (600,000) & $ & (500,000) \\ \hline Cost of goods sold & & 480,000 & & 320,000 & & 260,000 \\ \hline Operating expenses & & 100,000 & & 80,000 & & 140,000 \\ \hline Net income & $ & (320,000) & $ & (200,000) & $ & (100,000) \\ \hline Retained earnings, 1/1/18 & $ & (700,000) & $ & (600,000) & $ & (300,000) \\ \hline Net income & & (320,000) & & (200,000) & & (100,000) \\ \hline Dividends declared & & 128,000 & & - & & - \\ \hline Retained earnings, 12/31/18 & $ & (892,000) & $ & (800,000) & $ & (400,000) \\ \hline Current assets & $ & 444,000 & $ & 380,000 & $ & 280,000 \\ \hline Investment in Yarrow Company & & 720,000 & & - & & - \\ \hline Investment in Stookey Company & & - & & 344,000 & & - \\ \hline Land, buildings, and equipment (net) & & 949,000 & & 836,000 & & 520,000 \\ \hline Total assets & $ & 2,113,000 & $ & 1,560,000 & $ & 800,000 \\ \hline Liabilities & $ & (721,000) & $ & (460,000) & $ & (200,000) \\ \hline Common stock & & (500,000) & & (300,000) & & (200,000) \\ \hline Retained earnings, 12/31/18 & & (892,000) & & (800,000) & & (400,000) \\ \hline Total liabilities and equities & & (2,113,000) & & (1,560,000) & $ & (800,000) \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Sampling An Introduction

Authors: Dan M. Guy, D. R. Carmichael, O. Ray Whittington

5th Edition

047137590X, 978-0471375906

More Books

Students also viewed these Accounting questions

Question

What are the main sources of funding for a down payment?

Answered: 1 week ago

Question

Understanding Groups

Answered: 1 week ago