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Unformatted text preview: P8-24 Consolidation Workpaper — Year after RetirementBonds: S=issuerPurchased 12/31/x3 at ?Balance 12/31/x4 = 106,000Interest expense 100,000 x 9%=9,000 therefore 1,000 must be amort of premiumInterest income (given) 8,000Equity method entries:Investment in S30,000Income from S30,000NI 50,000 x 60%Cash6,000Investment in S6,000Dividend 10,000 x 60%a.Elimination Entries (not required):E(1)Income from Subsidiary30,000Dividends Declared6,000Investment in Brown Corporation24,000Eliminate income from subsidiary:E(2)Income to Noncontrolling Interest20,400Dividends Declared4,000Noncontrolling Interest16,400Assign income to noncontrolling interest:$16,400 = ($50,000 + $1,000) x .40E(3)Common Stock100,000Retained Earnings, January 170,000Investment in Brown Stock102,000Noncontrolling Interest68,000Eliminate beginning investment balance.E(4)Bonds Payable100,000Interest Income8,000Retained Earnings 1/1 4,200Non Controlling Interest2,800Investment in Stone Container Bonds106,000Interest Expense9,000Eliminate intercorporate bond holdings:...
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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