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Problem 3-2 (LO 2) Simple equity method adjustments, consolidated work sheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends for two years for Solar are as follows: 5 On January 1, 2015, the only undervalued tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth $30,000 more than book value, has a remaining life and straight-line depreciation is used. The remaining excess of cost over book value 3 8 2 0 3 Accumulated Depreciation. Current Liabilities. Other Long-Term Liabilities . . .. Common Stock Paro Company . Other Paid-n Capital in Excess of Par -Paro Company Other Paid-n Capital in Excess of Par -Solar Company Complete a worksheet for consolidated financial statements for 2016. Include columns for eliminations and adjustments, consolidated income, NCI, controlling retained earnings, and consolidated balance sheet.

I need that instruction, answered in this format:

Case 1(b): The workpaper to consolidate the balance sheets for P and S on Jan. 1, 2013, date of acquisition, is presented below: Eliminations Debit Consolidated Credit Balance Sheet Cash Other current assets Plant and equipment Land Investment in Sill P Company SCo Balances S 56,000 S 40,000 280,000 100,000 80,000 40,000 S96,000 380,000 320,000 120,000 240,000 80,000 144,000 144,000 Total assets $800,000 260,000 S 916,000 Liabilities Common stock Other Contributed capital Retained earnings Noncontrolling interest s 220,000 400,000 80,000 200,000 16,000 16,000 Total Liab. and Equity S 800,000 S 260,000 S 160.000 S 160,000 S 916,000 120,000 100,000 80,000 200,000 00,000 100,000 100,000 20,000 40,000 20,000 40,000

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