The trial balances of Panther and Sargo companies of Exercise 7 for December 31, 2012, are presented as follows:

Panther Company continues to use the cost method.
1. Prepare all the eliminations and adjustments that would be made on the 2012 consolidated worksheet.
2. If you did not solve Exercise 4 or 6, prepare the 2012 consolidated income statement and its related income distribution schedules.

Transcribed Image Text:

Panther Current Assets Depreciable Fixed Assets Accumulated Depreciation .. Investment in Sargo Company Current Liabilities Common Stock($10 par Retained Earnings, January 1, 2012 Sales Expenses Dividend Income (from Sargo Company) Dividends Declared. 130,000 400,000 (130,000 40,000) 272,000 (80,000) (300,000 100,000) (244,000) 70,000) (200,000 100,000) 160,000 115,000 200,000 3 85,000 (8,000) 10,000