The balance sheet of the Mutter & Tochter companies, as of 31 December X1, is given in the following table (Mutter Co. is the parent and Tochter Co. is the subsidiary).
Separate balance sheets as at
31 December X1 (000 CU)

The income statement of the Mutter & Tochter companies, for the year ending 31 December X1, are given in the following table.
Separate income statement for the year ending
31 December X1 (000 CU)

Required
1. Prepare the consolidated balance sheet using successively each of the following methods:
€¢ Full consolidation
€¢ Equity method
€¢ Proportionate consolidation (optional question)
2. Prepare the consolidated income statement using successively each of the following methods:
€¢ Full consolidation
€¢ Equity method
€¢ Proportionate consolidation (optional question).

Transcribed Image Text:

Mutter T Tochter Fixed assets (net) Investment in Tochter 22,000 10,000 (1) 16,000 Company Inventories Other current assets Total assets Capital Retained earning/ 34,000 25,700 2 9,200 91,700 40,000 14,000 10,000 35,200 15,000 6,000 Reserves Net income Debts Total shareholders' 7,000 30,700 91,700 4,000 10,200 (3) 35,200 equity and liabilities (1) When Mutter acquired 60 percent of the capital of Tochter, he shareholders' equity (capital, retained earringsreserves and net income) of the subsidiary was valued at 16,000 (2) Includes a loan to Tochter 1,000 (3) Includes a debt to Mutter 1,000 Separate income Mutter Tochter statements Revenues Expenses Net income 30,000 23,000 7,000 10,000 -6,000 4,000