3-31 - Dividends Paid 200,000 25,000 (D) 25,000 200,000...

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31. (Consolidation with IPR&D, equity method) a. Consideration transferred 1/1/09 $1,765,000 Increase in Salsa’s RE to1/1/10 150,000 In-process R&D write-off in 2009 (44,000) Amortizations 2009 (7,000) Income 2010 210,000 Dividends paid 2010 (25,000) Amortization 2010 (7,000 ) Investment balance 12/31/10 $2,042,000 b. Picante and Subsidiary Salsa Consolidated Worksheet for the year ended December 31, 2010 12/31/10 12/31/10 Accounts Picante Salsa Adjustments Consolidated Sales (3,500,000) (1,000,000) (4,500,000) Cost of Goods Sold 1,600,000 630,000 2,230,000 Depreciation Expense 540,000 160,000 (E) 7,000 707,000 Subsidiary Income (203,000 ) (I) 203,000 -0- Net Income (1,563,000 ) (210,000 ) (1,563,000 ) Ret. Earnings 1/1/10 (3,000,000) (800,000) (S) 800,000 (3,000,000) Net Income (1,563,000) (210,000) (1,563,000)
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Unformatted text preview: Dividends Paid 200,000 25,000 (D) 25,000 200,000 Ret. Earnings 12/31/10 (4,363,000 ) (985,000 ) (4,363,000 ) Cash 228,000 50,000 278,000 Accounts Receivable 840,000 155,000 995,000 Inventory 900,000 580,000 1,480,000 Investment in Salsa 2,042,000 (D) 25,000 (S)1,800,000 -0- (A) 64,000 (I) 203,000 Land 3,500,000 700,000 4,200,000 Equipment (net) 5,000,000 1,700,000 (A) 49,000 (E) 7,000 6,742,000 Goodwill 290,000-0-(A) 15,000 305,000 Total Assets 12,800,000 3,185,000 14,000,000 Accounts Payable (193,000) (400,000) (593,000) Long-term Debt (3,094,000) (800,000) (3,894,000) Common Stock—Picante (5,150,000) (5,150,000) Common Stock—Salsa (1,000,000) (S)1,000,000 Ret. Earnings 12/31/10 (4,363,000 ) (985,000 ) (4,363,000 ) (12,800,000 ) (3,185,000 ) 2,099,000 2,099,000 (14,000,000 )...
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This note was uploaded on 10/02/2009 for the course ACCT 401 taught by Professor Ross,m during the Spring '08 term at Western Kentucky University.

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