Chap004_Classproblems_solu

Chap004_Classproblems_solu -...

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Solutions to Chapter 4 In‐class Problems 1 E4-7 Balance Sheet Workpaper a. Eliminating entry: E(1) Common Stock – Faith Corporation 60,000 Retained Earnings 90,000 Investment in Faith Corporation Stock 150,000 Eliminate investment balance. b. Simon Corporation and Faith Corporation Consolidated Balance Sheet Workpaper December 31, 20X2 Simon Faith Eliminations Consol- Item Corp. Corp. Debit Credit idated Cash 65,000 18,000 83,000 Accounts Receivable 87,000 37,000 124,000 Inventory 110,000 60,000 170,000 Buildings and Equipment (net) 220,000 150,000 370,000 Investment in Faith Corporation Stock 150,000 (1)150,000 Total Debits 632,000 265,000 747,000 Accounts Payable 92,000 35,000 127,000 Notes Payable 150,000 80,000 230,000 Common Stock Simon Corporation 100,000 100,000 Faith Corporation 60,000 (1) 60,000 Retained Earnings 290,000 90,000 (1) 90,000 290,000 Total Credits 632,000 265,000 150,000 150,000 747,000
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Solutions to Chapter 4 In‐class Problems 2 E4-8 Balance Sheet Workpaper with Differential a. Eliminating entries: E(1) Common Stock – Faith Corporation 60,000
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This note was uploaded on 10/14/2009 for the course MGMT 503 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Chap004_Classproblems_solu -...

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