Professional Documents
Culture Documents
172,000
120,000
292,000
58,000
350,000
280,000
Sales
Cost of Sales
Operating Expense
Consolidated Income
Less Noncontrolling Interest in Consolidated Income
Controlling Interest in Consolidated Net Incmoe
Cost of goods
Less intercompany sales
Add unrealized profit in ending inventory
Less realized profit in beginning inventory
cost of goods sold
12,600,000
7,900,000
1,800,000
9,200,000
(1,400,000)
200,000
(100,000)
7,900,000
2,000,000
75000
2,075,000
207500
9,700,000
2,900,000
207,500
3,107,500
Sales
Purchases (COGS)
425,000
410,000
425,000
410,000
425,000
1,115,000
1,400,000
140,000
20,000
410,000
150,000
580,000
10%
58,000
2,000,000
(96,000)
1,904,000
58,000
1,962,000
Problem 6-13
Punca
Company
Income Statement
Sales
Equity in Segal
Total Revenue
Cost of Goods Sold
Other Expenses
Total Cost and Expense
Net Income
Noncontrolling Interest
Net Income to Retained Earnings
Retained Earnings Statement
Retained Earnings 1/1
Paque Company
Segal Company
Net Income from Above
Dividends Declared
Paque Company
Segal Company
Retained Earnings 12/31
Balance Sheet
Cash
Accounts Receivable
Inventory
Investment in Segal
Other Assets
Total
Accounts Payable
Other Current Liabilities
Common Stock
Paque Company
Segal Company
Retained Earnings
NCI in net assets
Total
1,650,000
64,125
795,000
1,714,125
795,000
1,290,000
310,500
1,600,500
517,500
206,250
723,750
113,625
71,250
113,625
71,250
838,500
113,625
180,000
71,250
2
1
300,000
64,125
15,000
2
4
379,125
4
5
40,500
180,000
379,125
(150,000)
802,125
(60,000)
191,250
93,000
319,500
75,000
168,750
210,000
847,125
172,500
750,000
2,219,625
630,000
1,046,250
105,000
112,500
45,000
60,000
1
599,625
3
5
1
1,200,000
802,125
750,000
191,250
750,000
599,625
4,500
$2,219,625
$1,046,250
$1,354,125
$
$
$
$
802,125.00
(13,500.00)
788,625.00
diary
rkpaper
31, 2012
Eliminating Entries
Cr.
Noncontrolling
Interest
Consolidated
Balance
2,145,000
2,145,000
1,522,500
471,750
1,994,250
300,000
45,000
150,750
345,000
10,125
(10,125)
10,125
140,625
798,000
345,000
10,125
140,625
(150,000)
54,000
(6,000)
399,000
4,125
788,625
168,000
488,250
367,500
15,000
837,000
10,125
1,380,000
2,403,750
150,000
172,500
1,200,000
399,000
93,000
$1,354,125
4,125
88,500
92,625
601,500
788,625
92,625
$3,005,250
Entry
Number
Accounts Used
Debit
Equipment
100,000
100,000
Accumulated depreciation
Credit
200,000
Entry
Number
Accounts Used
Debit
Credit
Entry
Number
Accounts Used
Debit
Credit
100,000
onsolidated Income
Internally generated income of Pearson
Realization of gain through usage
(depreciation adjustment)
Percentage of sub adjusted income
Controlling interest income
150000
0
90000
240000
Patterson Books
Gain on Sale
Land
A.
Debit
300,000
30,000
240,000
60,000
240,000
60,000
300,000
Credit
300,000
300,000
300,000
300,000
300,000
Entry
Number
Accounts Used
Debit
Credit
Entry
Number
Accounts Used
Debit
Credit
Shea
Net Income from Above
Dividends Declared
Parsons
Shea
Retained Earnings 12/31
Balance Sheet
Cash
Accounts Receivable
Inventory
Investment in Shea
Other Current Assets
Difference between implied and book
Land
Property and Equipment
Accumulated Depreciation
Manufacturing formula
Total
Accounts and Notes Payable
2,555,500
54,000
1,120,000
2,609,500
1,120,000
1,730,000
690,500
654,500
2,384,500
251,000
941,500
225,000
178,500
225,000
178,500
375,000
54,000
429,000
595,000
225,000
139,500
139,500
178,500
429,000
(100,000)
720,000
(60,000)
258,000
119,500
342,000
362,000
426,000
132,500
125,000
201,000
40,500
13,000
568,500
71,550
241,000
(53,500) 3
10,500
2,500
2,500
150,000
825,000
(207,000)
2,058,000
659,000
295,000
32,000
Other Liabilities
Capital Stock
Parsons
Shea
Additional Paid-in Capital
Retained Earnings from Above
NCI in assets 1/1
43,000
19,000
1,000,000
720,000
300,000
50,000
258,000
300,000
50,000
568,500
2,058,000
659,000
1,005,550
idiary
rkpaper
31, 2013
Eliminating Entries
Cr.
Noncontrolling
Interest
Consolidated
Balance
3,300,500
3,300,500
2,045,500
375,000
18,000
905,500
2,951,000
393,000
30,450
349,500
(30,450)
30,450
319,050
666,550
71,550
393,000
30,450
319,050
(60,000)
464,550
(29,550)
985,600
252,000
467,000
563,000
324,000
30,450
53,500
50,000
160,500
1,068,500
(213,000)
2,351,500
327,000
62,000
1,000,000
464,550
(29,550)
(50,000)
985,600
36,000
(29,550)
(29,550)
905,000
2,295,050
Punca
Company
Income Statement
Sales
Equity in Subsidary income
Total Revenue
Cost of Goods Sold
Other Expenses
Total Cost and Expense
Net Income
Noncontrolling Interest
Net Income to Retained Earnings
Retained Earnings Statement
Retained Earnings 1/1
Prather
Stone
Net Income from Above
Dividends Declared
Prather
Stone
Retained Earnings 12/31
Balance Sheet
Inventory
Investment in Surrano
Fixed assets
Accum Depreication
Total
Liabilities
Common Stock
Prather
Stone
Retained Earnings from Above
Noncontrolling Interest
Total
1,950,000
240,000
1,350,000
2,190,000
1,350,000
1,350,000
900,000
225,000
1,575,000
150,000
1,050,000
615,000
300,000
615,000
300,000
240,000
1,505,400
615,000
1,038,000
300,000
15,000
240,000
15,000
120,000
1,038,000
12,000
240,000
15,000
(150,000)
1,970,400
(75,000)
1,263,000
498,000
1,430,400
225,000
2,168,100
2,625,000
(900,000)
3,196,500
(612,000)
2,238,000
465,600
450,000
60,000
1,398,000
87,000
1,250,400
180,000
390,000
30,000
540,000
760,500
1,970,400
525,000
1,263,000
525,000
1,398,000
30,000
3,196,500
2,238,000
2,373,000
87,000
312,600
3,000
2,373,000
$
$
1,505,400
-
1,505,400
Noncontrolling
Interest
Consolidated
Balance
3,300,000
3,300,000
2,250,000
360,000
2,610,000
63,000
690,000
(63,000)
63,000
627,000
1,397,400
63,000
627,000
(150,000)
(15,000)
48,000
1,874,400
723,000
180,000
5,183,100
(2,022,000)
4,064,100
915,600
760,500
48,000
285,600
1,874,400
333,600
333,600
3,884,100