ACC401-Module 5- Exam 2- Lisa Byrd.xlsx - Lisa Byrd ACC-401 Exam 2 Problem 1 Parrot Corporation acquired 90 of Swallow Co on January 1 2014 for $27,000

ACC401-Module 5- Exam 2- Lisa Byrd.xlsx - Lisa Byrd ACC-401...

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Lisa Byrd ACC-401 Exam 2 Problem 1Complete the consolidation working papers for Parrot and Swallow for the year 2014.Parrot Corporation acquired 90% of Swallow Co. on January 1, 2014 for $27,000 cash when Swallow's stockholderof Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallowsolely to a patent amortized over 5 years. The separate company statements for Parrot and Swallow appear in thepartially completed consolidation working papers. Parrot Swallow Eliminations Consolidated Debit Credit $ 20,000.00 $ 15,000.00 $ 35,000.00 Sales Income of Swallow $ 2,970.00 $ 2,970.00 $ - Cost of Sales $ (9,200.00) $ (4,700.00) $ (13,900.00) Other Expenses $ (2,300.00) $ (4,000.00) $ 3,000.00 $ (9,300.00) $ 330.00 $ (330.00) Net Income $ 11,470.00 $ 6,300.00 $ 11,470.00 $ 11,000.00 $ 5,000.00 $ 5,000.00 $ 11,000.00 Add: $ 11,470.00 $ 6,300.00 $ 11,470.00 Net Income Less: $ (3,000.00) $ (2,000.00) $ 2,000.00 $ (3,000.00) Dividends $ 19,470.00 $ 9,300.00 $ 19,470.00 BALANCE SHEET $ 2,000.00 $ 1,900.00 $ 3,900.00 Cash $ 12,000.00 $ 5,500.00 $ 17,500.00 Inventories $ 14,000.00 $ 8,000.00 $ 22,000.00 Patent $ 15,000.00 $ 3,000.00 $ 12,000.00 Land $ 27,000.00 $ 42,000.00 $ 69,000.00 $ 60,000.00 $ 43,000.00 $ 103,000.00 $ 28,170.00 $ 28,170.00 $ - TOTAL ASSETS $ 143,170.00 $ 100,400.00 $ 227,400.00 LIAB. & EQUITY $ 93,700.00 $ 81,100.00 $ 174,800.00 Accounts Payable Capital Stock $ 30,000.00 $ 10,000.00 $ 10,000.00 $ 30,000.00 INCOME STATEMENT Noncontrolling Interest Share Retained Earnings 1/1 Retained Earnings 12/31 Accounts Receivable- net Equipment and Buildings-net Investment in Swallow Co.
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Retained earnings $ 19,470.00 $ 9,300.00 $ 19,470.00 $ 3,000.00 $ 130.00 $ 3,130.00 $ 143,170.00 $ 100,400.00 $ 36,300.00 $ 36,300.00 $ 227,400.00 1/1 Noncontrol. Interest 12/31 Noncontrol. Interest TOTAL LIAB. & EQUITY
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Lisa Byrd ACC-401 Exam 2 Problem 2Complete the consolidation working papers for Powell Corporation and Subsidiary for the year ended Decem Powell Santer Eliminations Consolidated Debit Credit $ 10,000.00 $ 6,500.00 $ 16,500.00 Sales Income from Santer $ 1,080.00 $ 1,080.00 $ - Cost of Sales $ (4,000.00) $ (3,300.00) $ (7,300.00) Depreciation Expense $ (1,000.00) $ (1,000.00) $ 300.00 $ (2,300.00) Other Expenses $ (1,800.00) $ (700.00) $ (2,500.00) $ 120.00 $ (120.00) Net Income $ 4,280.00 $ 1,500.00 $ 4,280.00 $ 2,510.00 $ 5,000.00 $ 5,000.00 $ 2,510.00 Add: $ 4,280.00 $ 1,500.00 $ 4,280.00 Net Income Less: $ (2,000.00) $ (1,000.00) $ 1,000.00 $ (2,000.00) Dividends $ 4,790.00 $ 5,500.00 $ 4,790.00 BALANCE SHEET $ 1,440.00 $ 1,900.00 $ 3,340.00 Cash Receivables-net $ 1,100.00 $ 600.00 $ 550.00 $ 1,150.00 Inventories $ 1,500.00 $ 1,200.00 $ 2,700.00 Land $ 1,000.00 $ 1,600.00 $ 1,000.00 $ 3,600.00 $ 7,500.00 $ 6,700.00 $ 1,200.00 $ 300.00 $ 15,100.00 $ 12,060.00 $ 12,060.00 $ - Goodwill $ 1,000.00 $ 1,000.00
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