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The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in
The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Y 1, 2017 in exchange for various considerations totaling $990 000. At the acquisition date, the fair value of the noncontrolling int and Ketler's book value was $1,320,000. Kelter had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $330.000. This intangible asset is being amortized over 20 years. Gibson sold Kelle: land with a book value of $70,000 on January 2, 2017, for $160,000. Keller still holds this land at the end of the current year. Keller regular y transfers inventory to Gibson. In 2017, it shipped inventory costing $247 000 to Gibson at a price of $380,000. During 2018, intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. In each of these years, 20 percent of the merchandise was not resold to outsice parties until the period following the transfer. Gibson owes Keller $30,000 at the end of 2018 Keller Company $ (730,000) 530,000 70,000 $ $ Gibson Company $ (1,030,000) 730,000 110.000 (78,000) $ (268,000) 5 (1,346,000) (268,000) 140.000 $ (1,474,000) 192,000 402.000 620,000 1,065.000 200.000 519,000 $ 2,998,000 (704,000) (820,000) Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 111/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities (130,000) (735,000) (130,000) 40.000 (825,000) 90,000 640,000 550,000 $ $ $ $ 620,000 530,000 2,430,000 (985,000) (550,000) (70,000) 0 (1.474,000) $ 2,998.000) $ (2.430.000) (Note: Parentheses indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller. The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Y 1, 2017 in exchange for various considerations totaling $990 000. At the acquisition date, the fair value of the noncontrolling int and Ketler's book value was $1,320,000. Kelter had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $330.000. This intangible asset is being amortized over 20 years. Gibson sold Kelle: land with a book value of $70,000 on January 2, 2017, for $160,000. Keller still holds this land at the end of the current year. Keller regular y transfers inventory to Gibson. In 2017, it shipped inventory costing $247 000 to Gibson at a price of $380,000. During 2018, intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. In each of these years, 20 percent of the merchandise was not resold to outsice parties until the period following the transfer. Gibson owes Keller $30,000 at the end of 2018 Keller Company $ (730,000) 530,000 70,000 $ $ Gibson Company $ (1,030,000) 730,000 110.000 (78,000) $ (268,000) 5 (1,346,000) (268,000) 140.000 $ (1,474,000) 192,000 402.000 620,000 1,065.000 200.000 519,000 $ 2,998,000 (704,000) (820,000) Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 111/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities (130,000) (735,000) (130,000) 40.000 (825,000) 90,000 640,000 550,000 $ $ $ $ 620,000 530,000 2,430,000 (985,000) (550,000) (70,000) 0 (1.474,000) $ 2,998.000) $ (2.430.000) (Note: Parentheses indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller
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