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Unformatted text preview: P8-23 Consolidation Workpaper Year of RetirementBonds:Issuer=SEntireIntercoPurchaser=P12/21/x3Bonds Payable200,00050,00012/21/x3Investment in Bonds50,00012/21/x3Premium28,0007,000Bonds Payable = 57,000Bond Investment= 50,000Constr. Gain7,000Building P ----SCost40,000251,600AD16,000BV24,000151,60012/31/x1Sales Price30,000152,000Gain6,000400NBV 1/1/3 is 30,000-2,000Should be: 40,000 (16,000+1600) difference 5,600Equity method Entries:Investment in S18,000Income from S18,000NI 30,000 x 60%Cash6,000Investment in S6,000Dividend 10,000 x 60%a.Elimination Entries (not required):E(1)Income from Subsidiary18,000Dividends Declared6,000Investment in Brown Corporation12,000Eliminate income from subsidiary:$18,000 = $30,000 x .60E(2)Income to Noncontrolling Interest14,960Dividends Declared4,000Noncontrolling Interest10,960Assign income to noncontrolling interest:$14,960 = ($30,000 + $7,000 + $400) x .40E(3)Common Stock100,000Retained Earnings, January 150,000Investment in Brown Stock90,000...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.
- Spring '08