Use negative signs with answers in the Consolidated column for Cost of goods sold. Operating expenses and Dividends. Consolidation Worksheet Parent Subsidiary Debit Credit Income statement Consolidated Sales $4,802,000 $1,338.300 $ 0 Cost of goods sold (3.457,300) (784,700) 0 Gross profit 1,344,700 553,600 0 Equity income 159,150 10 0 0 Operating expenses (720.300) (340.200) ID 0 0 Net income $783.550 $213.400 $ 0 Statement of retained earnings BOY retained earnings $1,694,700 5676 200 0 $ 0 Net income 783,550 213.400 0 Dividends (394.000) (58.000) 0 IC 0 Ending retained earnings 52.084,250 $831,600 $ 0 Balance sheet Assets Cash $719,600 $337.400 S 0 Accounts receivable 1.229.200 303,800 0 Inventory 1.624,000 389.900 0 Equity investment 1,650,550 010) 0 [E] 0 Al PPE, net 2.923,200 721,000 (A) 0 0 (0) Patent A 0 0 () Licenses [A] 0 0 (0) o o o o eBook Print Support Question 6 Incomplete aniwer Marked out of 97.00 P Pleg question Consolidation several years subsequent to date of acquisition-Equity method Assume that a parent company acquired a subsidiary on January 1, 2014. The purchase price was 5785,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following losses: Original Original Uw Al Asset Amount Ute Property, blant and equipment IPEX 510.000 16 years Patent 245.000 7 year 105.000 10 years Good $785.000 | License The Al assets with definite useful lives have been depreciated or amortired as part of the parent's preconsolidation equity method accounting. The Goodwill asset has been tested 10:10 PM O RE Type here to search Use negative signs with answers in the Consolidated column for Cost of goods sold. Operating expenses and Dividends. Consolidation Worksheet Parent Subsidiary Debit Credit Income statement Consolidated Sales $4,802,000 $1,338.300 $ 0 Cost of goods sold (3.457,300) (784,700) 0 Gross profit 1,344,700 553,600 0 Equity income 159,150 10 0 0 Operating expenses (720.300) (340.200) ID 0 0 Net income $783.550 $213.400 $ 0 Statement of retained earnings BOY retained earnings $1,694,700 5676 200 0 $ 0 Net income 783,550 213.400 0 Dividends (394.000) (58.000) 0 IC 0 Ending retained earnings 52.084,250 $831,600 $ 0 Balance sheet Assets Cash $719,600 $337.400 S 0 Accounts receivable 1.229.200 303,800 0 Inventory 1.624,000 389.900 0 Equity investment 1,650,550 010) 0 [E] 0 Al PPE, net 2.923,200 721,000 (A) 0 0 (0) Patent A 0 0 () Licenses [A] 0 0 (0) o o o o eBook Print Support Question 6 Incomplete aniwer Marked out of 97.00 P Pleg question Consolidation several years subsequent to date of acquisition-Equity method Assume that a parent company acquired a subsidiary on January 1, 2014. The purchase price was 5785,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following losses: Original Original Uw Al Asset Amount Ute Property, blant and equipment IPEX 510.000 16 years Patent 245.000 7 year 105.000 10 years Good $785.000 | License The Al assets with definite useful lives have been depreciated or amortired as part of the parent's preconsolidation equity method accounting. The Goodwill asset has been tested 10:10 PM O RE Type here to search
