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this is all the info i got... please help ASAP... and follow the numbers in the questions thank you. and notice that 75% not 80%
this is all the info i got...
please help ASAP... and follow the numbers in the questions thank you. and notice that 75% not 80%
January 1, 2019 SOS company invested 2,400,000 $ for75% of RAT company, in that date the fair value of RAT is equal to its book value except inventories was undervalued 20,000, equipment (10years) undervalued 80,000,6% 5 years bonds undervalued 60,000. The owner's equity was $1,300,000 shares, 900,000 premiums and 600,000 as retained earnings, the following are selective information about the parent and its subsidiary: During 2019 1- The subsidiary reported net income for 2019 was $152,000 and declared and paid $50000 dividend. During 2020 2- 1/17 2020 the parent sold a land cost 200,000 for $220,000. The reported income for the subsidiary was 90,000 and 10,000 dividends 3- 1/1/2020 the subsidiary sold an equipment for parent for 120,000 and net book value 110,000, five years remaining use life. 4- 1/11/2020 the parent sold goods for 250,000 including 25% markup, the subsidiary ending inventory include 60000$ inventory from parent. 5- The subsidiary sold goods at 150,000 which cost$120,000,30% of these goods remained in inventory 6- Subsidiary net income of the year 2020 was $180,000 and$30,000 dividend. 7- During 2020 the subsidiary sold goods with mark up 20% at cost 300.000, 25% of this inventory still in hand in 31/12/2020. 8- the subsidiary sold the land that purchased from parent for 250,000. 9- The subsidiary reported net income for 2020 was 80,000 and 20.000 dividends were paid 10- The parent retained earnings in 31/12/2018 1,800,000 $. Dividends and income without income from subsidiary during the years was: 2019 (income 500.000$ dividend 150,000), 2020 (income 300.000$, dividend 80,000). Required: 1- Prepare all the elimination entries in 31/12/2020 2- Journalize the income and dividend under equity methods in parent's book for the year 2020. 3- Complete the following table: 2019 2020 Accounts Income from subsidiary Controlling interest share Consolidated income Consolidated retained earning Non-controlling share Non-controlling of interest Investment/ Unamortized amount Amortizations January 1, 2019 SOS company invested 2,400,000 $ for75% of RAT company, in that date the fair value of RAT is equal to its book value except inventories was undervalued 20,000, equipment (10years) undervalued 80,000,6% 5 years bonds undervalued 60,000. The owner's equity was $1,300,000 shares, 900,000 premiums and 600,000 as retained earnings, the following are selective information about the parent and its subsidiary: During 2019 1- The subsidiary reported net income for 2019 was $152,000 and declared and paid $50000 dividend. During 2020 2- 1/17 2020 the parent sold a land cost 200,000 for $220,000. The reported income for the subsidiary was 90,000 and 10,000 dividends 3- 1/1/2020 the subsidiary sold an equipment for parent for 120,000 and net book value 110,000, five years remaining use life. 4- 1/11/2020 the parent sold goods for 250,000 including 25% markup, the subsidiary ending inventory include 60000$ inventory from parent. 5- The subsidiary sold goods at 150,000 which cost$120,000,30% of these goods remained in inventory 6- Subsidiary net income of the year 2020 was $180,000 and$30,000 dividend. 7- During 2020 the subsidiary sold goods with mark up 20% at cost 300.000, 25% of this inventory still in hand in 31/12/2020. 8- the subsidiary sold the land that purchased from parent for 250,000. 9- The subsidiary reported net income for 2020 was 80,000 and 20.000 dividends were paid 10- The parent retained earnings in 31/12/2018 1,800,000 $. Dividends and income without income from subsidiary during the years was: 2019 (income 500.000$ dividend 150,000), 2020 (income 300.000$, dividend 80,000). Required: 1- Prepare all the elimination entries in 31/12/2020 2- Journalize the income and dividend under equity methods in parent's book for the year 2020. 3- Complete the following table: 2019 2020 Accounts Income from subsidiary Controlling interest share Consolidated income Consolidated retained earning Non-controlling share Non-controlling of interest Investment/ Unamortized amount AmortizationsStep by Step Solution
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