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Unformatted text preview: P4-28 Consolidation Workpaper at End of First Year of Ownership$128,000 100% (60,000 +40,000) = 28,000BVFMV100%lifeAmort.B&E (net)20,000102,000Goodwill8,0005,500Total28,000a.Journal entries recorded by Parent(1)Cash16,000Investment in Lake Corporation Stock16,000Record dividends from subsidiary.(2)Investment in Lake Corporation Stock24,000Income from Subsidiary24,000Record equity-method income.(3)Income from Subsidiary2,000Investment in Lake Corporation Stock2,000Amortize differential: $20,000 / 10 yearsNo entries for goodwill impairmenta. Eliminating entries:E(1)Income from Subsidiary22,000Dividends Declared16,000Investment in Roller Company Stock6,000Eliminate income from subsidiary.E(2)Common Stock Roller Company60,000Retained Earnings, January 140,000Differential28,000Investment in Roller Company Stock128,000Eliminate beginning investment balance.E(3)Buildings and Equipment20,000Goodwill8,000Differential28,000Assign beginning differential....
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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