4-15 - E4-15 Basic Consolidation Workpaper a. Equity method...

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Unformatted text preview: E4-15 Basic Consolidation Workpaper a. Equity method entries: Investment in Shaw Corporation Stock Income from Subsidiary To record income from sub Cash Investment in Shaw Corporation Stock To record dividends declared and paid by sub 30,000 30,000 10,000 10,000 a. Eliminating entries: E(1) Income from Subsidiary Dividends Declared Investment in Shaw Corporation Stock Eliminate income from subsidiary. Common Stock -- Shaw Corporation Retained Earnings, January 1 Investment in Shaw Corporation Stock Eliminate beginning investment balance. 30,000 10,000 20,000 100,000 50,000 150,000 E(2) E4-15 (continued) b. Blake Corporation and Shaw Corporation Consolidation Workpaper December 31, 20X3 Item Sales Income from Subsidiary Credits Depreciation Expense Other Expenses Debits Net Income, carry forward Ret. Earnings, Jan. 1 Net Income, from above Dividends Declared Ret. Earnings, Dec. 31, carry forward Current Assets Depreciable Assets Investment in Shaw Corporation Stock Debits Current Liabilities Long-Term Debt Common Stock Blake Corporation Shaw Corporation Retained Earnings, from above Credits Blake Corp. Shaw Corp. Eliminations Debit Credit Consolidated 320,000 320,000 40,000 180,000 (220,000) 100,000 230,000 100,000 330,000 (40,000) 290,000 250,000 550,000 (1) 20,000 (2)150,000 330,000 40,000 120,000 100,000 290,000 640,000 70,000 330,000 (2)100,000 80,000 180,000 10,000 180,000 290,000 800,000 800,000 90,000 220,000 200,000 200,000 120,000 30,000 (1) 30,000 230,000 120,000 25,000 15,000 105,000 75,000 (130,000) (90,000) 100,000 30,000 30,000 (2) 50,000 30,000 (1) 10,000 80,000 10,000 230,000 50,000 100,000 30,000 330,000 80,000 (40,000) (10,000) 290,000 145,000 325,000 170,000 640,000 50,000 100,000 200,000 70,000 105,000 225,000 ...
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4-15 - E4-15 Basic Consolidation Workpaper a. Equity method...

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