8-24 - P8-24 Consolidation Workpaper — Year after...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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:...
View Full Document

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.

Page1 / 5

8-24 - P8-24 Consolidation Workpaper — Year after...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online