5-20A and 21A - E5-20A and 21A Basic Cost-Method...

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Unformatted text preview: E5-20A and 21A Basic Cost-Method WorkpaperDifferential: 150,000 – 100%(100,000 + 50,000) = 0Actual Entries:Investment in S150,000ICash15,000Record original investmentCash10,000Dividend Income10,000Dividends a.Eliminating entries:E(1)Dividend Income10,000Dividends Declared10,000Eliminate dividend income from subsidiary.E(2)Common Stock — Shaw Corporation100,000Retained Earnings, January 150,000Investment in Shaw Corporation Stock150,000Eliminate original investment balance.b.Blake Corporation and Shaw CorporationConsolidation Workpaper December 31, 20X3BlakeShawEliminationsConsol-ItemCorp.Corp.DebitCreditidatedSales200,000 120,000 320,000 Dividend Income10,000(1) 10,000Credits210,000120,000320,000Depreciation Expense25,000 15,000 40,000 Other Expenses105,00075,000180,000Debits(130,000)(90,000)(220,000)Net Income, carry forward80,00030,00010,000100,000Ret. Earnings, Jan. 1230,000 50,000 (2) 50,000230,000 Net Income, from above80,00030,00010,000100,000310,000 80,000 330,000 Dividends Declared...
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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.

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5-20A and 21A - E5-20A and 21A Basic Cost-Method...

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