4-16 - E4-16 Basic Consolidation Workpaper for Second Year...

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Unformatted text preview: E4-16 Basic Consolidation Workpaper for Second Year 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 35,000 35,000 15,000 15,000 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. 35,000 15,000 20,000 100,000 70,000 170,000 E(2) E4-16 (continued) b. Blake Corporation and Shaw Corporation Consolidation Workpaper December 31, 20X4 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 370,000 370,000 40,000 240,000 (280,000) 90,000 290,000 90,000 380,000 (50,000) 330,000 360,000 510,000 (1) 20,000 (2)170,000 360,000 50,000 120,000 100,000 330,000 700,000 90,000 360,000 (2)100,000 105,000 205,000 15,000 205,000 330,000 870,000 870,000 120,000 220,000 200,000 230,000 140,000 35,000 (1) 35,000 265,000 140,000 25,000 15,000 150,000 90,000 (175,000) (105,000) 90,000 290,000 90,000 380,000 (50,000) 330,000 210,000 300,000 190,000 700,000 70,000 100,000 200,000 35,000 35,000 70,000 (2) 70,000 35,000 35,000 105,000 (15,000) 90,000 150,000 210,000 105,000 (1) 15,000 15,000 ...
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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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4-16 - E4-16 Basic Consolidation Workpaper for Second Year...

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