To parent 279800 correct retained earnings 1110

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To parent (279,800) Correct! Retained earnings, 1/1/10 - Gibson $(1,116,000) [*C] 9,000 $(1,067,000) Correct! [*TL] 40,000 - Keller $(620,000) [S] 610,000 - Correct! [*G] 10,000 Net Income (284,000) (140,000) (279,800) Correct! Dividends 115,000 60,000 [D] 36,000 24,000 115,000 Correct! Retained earnings, 12/31/10 $(1,285,000) $(700,000) $(1,231,800) Correct! Cash $177,000 $90,000 $267,000 Correct! Accounts receivable $356,000 $410,000 [P] 40,000 726,000 Correct! Inventory 440,000 320,000 [*G] 12,000 748,000 Correct! Investment in Keller 726,000 [D] 36,000 [*C] 9,000 - Correct! [S] 612,000 [A] 57,000 [ I ] 84,000 Land 180,000 390,000 [*TL] 40,000 530,000 Correct! Buildings and equipment (net) 496,000 300,000 796,000 Correct! Customer list [A] 95,000 [E] 5,000 90,000 Correct! Total assets $2,375,000 $1,510,000 $3,157,000 Correct! Liabilities (480,000) (400,000) [P] 40,000 (840,000) Correct! Common stock (610,000) (320,000) [S] 320,000 (610,000) Correct! Additional paid-in capital (90,000) [S] 90,000 - Correct! Retained earnings, 12/31/10 (1,285,000) (700,000) (1,231,800) Correct! Noncontrolling interest in [S] 408,000 (408,000) - Correct! Keller, 1/1/10 [A] 38,000 (38,000) - Correct! Noncontrolling interest in (475,200) (475,200) Correct! Keller, 12/31/10 Total liabilities and equity $(2,375,000) $(1,510,000) $(3,157,000) Correct! Part b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $600,000 book value (cost of $140,000) to Keller for $100,000 instead of land, as the problem reports? *TA would replace *TL above because it is a builing and not land. An then since building is depreciable you add entry ED to the list of J/E. Entry *TA R/E 36,000 Correct! Buildings 40,000 Correct! Accumulated Depreciation 76,000 Correct! Entry ED R/E 4,000 Correct!
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Buildings 4,000 Correct!
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  • Spring '10
  • George
  • Balance Sheet, Generally Accepted Accounting Principles

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