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The partial trial balances of P Co. and Co. at December 31, Year 10, were as follows: Dr 30 point Investment in S. co. Common
The partial trial balances of P Co. and Co. at December 31, Year 10, were as follows: Dr 30 point Investment in S. co. Common shares Retained earnings, beginning of year P Co. Dr Cr. 117.000 153,000 119,000 S co. Cr. 84,000 51,690 book Additional Information The investment in the shares of Co. (a 90% Interest) was acquired January 2 Yearfor $117,000. At that time, the shareholders equity of Co. was common shares of $84.000 and retained earnings of $23,000 and the common shares for P Co. of $153,000. Net incomes of the two companies for the year were as follows: Print Reference P Co. s Co. $63,000 51,600 During Year 10, sales of P Co. to 5 Co. were $13.000, and sales of S Co to P Co. were $33.000. Rates of gross profit on Intercompany sales in Years 9 and 10 were 40% of sales. On December 31, Year 9, the inventory of P Co. Included $10,000 of merchandise purchased from s Co., and the inventory of S Co. Included $0,000 of merchandise purchased from P Co. On December 31 Year 10, the Inventory of P Co. Included $23,000 of merchandise purchased from s Co., and the inventory of Co. Included $8,000 of merchandise purchased from P Co. . During the year ended December 31, Year 10. P Co. paid dividends of $15,000 and 5 Co. paid dividends of $13,000 At the time that P Co. purchased the shares of Co., the acquisition differential was allocated to patents of s Co. These patents are being amortized for consolidation purposes over a period of five years. In Year 8, land that originally cost $43,000 was sold by S Co to P Co. for $53,300. The land is still owned by P Co. Assume a corporate tax rate of 40% Required: Prepare a consolidated statement of changes in equity for the year ended December 31, Year 10. Leave no cells blank - be certain to enter "o" wherever required. Negative amounts should be indicated by a minus sign. Omit $ sign in your response.) P Co. Consolidated Statement of Changes in Equity For Year Ended December 31, Year 10 Mon-controlling Common Shares Retained Earnings Total Interest Balance, beginning of year Add: Net Income y Click to schy Retained earnings, Dec. 31 Total $ $
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