Chapter 6 Downstream Inventory Practice - Key.xlsx

Chapter 6 Downstream Inventory Practice - Key.xlsx - Zigma...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Eliminations Zigma Standard Debit Credit Consolidated Income Statement Sales 200,000 137,000 100,000 237,000 Other Expenses (90,000) (70,000) 96,000 (64,000) Depreciation (30,000) (17,000) (47,000) Income from Standard 41,000 41,000 - Net Income 121,000 50,000 141,000 96,000 126,000 NCI Net Income 5,000 (5,000) CI Net Income 146,000 96,000 121,000 Sold to Sub Statement of Retained Earnings Sales 100,000 Beginning RE 175,000 35,000 35,000 175,000 Cost of Sales 80,000 Net Income 121,000 50,000 146,000 96,000 121,000 Gross Margin 20,000 Less Dividends Declared (32,000) (10,000) 10,000 (32,000) Ending Retained Earnings 264,000 75,000 181,000 106,000 264,000 Equity Journal Entries Already P Balance Sheet Current Assets 245,500 120,000 4,000 361,500 Investment in Standard Depreicable Assets 300,000 170,000 68,000 402,000 Cash Accumulated Depreciation (120,000) (85,000) 68,000 (137,000) To record Purchase of Stock Investment in Standard 108,500 108,500 - Investment in Standard Total Assets 534,000 205,000 68,000.00 180,500 626,500 Income from Standard To record Income from Stardard Current Liabilities 50,000 30,000 80,000 Cash Long Term Liabilities 120,000 50,000 170,000 Investment in Standard Common Stock 100,000 50,000 50,000 100,000 To record Dividend Retained Earnings 264,000 75,000 181,000 106,000 264,000 Income in Standard NCI Share of Assets - ### 12,500 12,500 Investment in Standard Total Liabilities and Equity 534,000 205,000 231,000 118,500 626,500 Elimination Entries
Image of page 1

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

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern