Ch05 - Excel answer key

Ch05 - Excel answer key - Student Name Instructor 58 pts...

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Student Name: Instructor - 58 pts Class: McGraw-Hill/Irwin Problem 05-32 a. How was the balance in the Equity Earnings of Sander account determined? 2011 income reported by Sander $230,000 Excess patent fair value amortization (70,000) Deferred gross profit for 12/31/11 intra-entity inventory (40,000) Recognized gross profit for 1/11/11 intra-entity inventory 35,000 Sander's income adjusted $155,000 To controlling interest $124,000 To noncontrolling interest $31,000 Correct! PLYMOUTH COMPANY AND SUBSIDIARY Consolidation Worksheet December 31, 2011 Adjustments and Non- Eliminations controlling Consolidated Accounts Plymouth Sander Debit Credit Interest Totals Revenues (1,740,000) (950,000) 300,000 (2,390,000) Correct! Cost of goods sold 820,000 500,000 40,000 300,000 1,025,000 Correct! 35,000 Depreciation expense 104,000 85,000 189,000 Correct! Amortization expense 220,000 120,000 70,000 410,000 Correct! Interest expense 20,000 15,000 35,000 Correct! Equity earnings - Sander (124,000) - 124,000 - Correct! Separate company income (700,000) (230,000) (731,000) Correct! Consolidated income to noncontrolling interest (31,000) 31,000 Correct! Consolidated income to controlling interest (700,000) Correct! Retained earnings, 1/1 (2,800,000) (345,000) 310,000 (2,800,000) Correct! 35,000 Net Income (700,000) (230,000) (700,000) Correct! Dividends paid 200,000 25,000 20,000 5,000 200,000 Correct! Retained earnings, 12/31 (3,300,000) (550,000) (3,300,000) Correct! Cash 535,000 115,000 650,000 Correct! Accounts receivable 575,000 215,000 790,000 Correct! Inventory 990,000 800,000 40,000 1,750,000 Correct! Investment in Sander 1,420,000 20,000 968,000 - Correct! 348,000 124,000 Buildings and equipment 1,025,000 863,000 1,888,000 Correct! Patents
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This note was uploaded on 09/28/2011 for the course ACC 431 taught by Professor Talbert during the Spring '08 term at National.

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Ch05 - Excel answer key - Student Name Instructor 58 pts...

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