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Laailple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow:

Laailple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow:

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 28P
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Laiiple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: Cash 65000 25000 Accounts receivables 40000 30000 15000 Inventory Equipments 25000 110000 85000 Land 48500 45000 Investment dividends declared Cost of goods sold 175500 20000 15000 60000 150000 operating expenses total debits 35000 15000 669000 290000 accounts payable 20000 15000 other liabilities 15000 25000 capital - C.S other contributed capital retained earnings 1/1/2007 sales equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 200000 120000 70000 20000 55000 25000 300000 85000 9000 669000 290000 cash 70000 10000 60000 35000 Accounts receivables inventory equipments 40000 125000 90000 48500 184500 20000 30000 land 45000 investment dividends declared 15000 160000 65000 35000 Cost of goods sold operating expenses total debits 20000 743000 310000 16500 16000 accounts payable other liabilities 15000 24000 capital - C.S other contributed capital retained earnings 1/1/2008 159000 20000 200000 120000 20000 70000 260000 110000 22500 | 743000 310000 sales Quity in S income total credits
Transcribed Image Text:Laiiple 7: Consolidated financial statements - 2 years- Equityt Method On Januaryl, 2007, P Company purchased 90% of the outstanding common stock of S company for JD 180000. S equity did not change through the year. Any difference between cost and book value of equity is attributable to land. On Dec 31, 2007 the trial balances of the two companies were as follow: Cash 65000 25000 Accounts receivables 40000 30000 15000 Inventory Equipments 25000 110000 85000 Land 48500 45000 Investment dividends declared Cost of goods sold 175500 20000 15000 60000 150000 operating expenses total debits 35000 15000 669000 290000 accounts payable 20000 15000 other liabilities 15000 25000 capital - C.S other contributed capital retained earnings 1/1/2007 sales equity in S income total credits A-Prepare the consolidated financial statements at the end of year 2007. assuming and difference between the implied and book values is attributable to land b- Prepare the consolidated financial statements on Dec 31, 2008, assuming that the trial balances on that date were as follow: 200000 120000 70000 20000 55000 25000 300000 85000 9000 669000 290000 cash 70000 10000 60000 35000 Accounts receivables inventory equipments 40000 125000 90000 48500 184500 20000 30000 land 45000 investment dividends declared 15000 160000 65000 35000 Cost of goods sold operating expenses total debits 20000 743000 310000 16500 16000 accounts payable other liabilities 15000 24000 capital - C.S other contributed capital retained earnings 1/1/2008 159000 20000 200000 120000 20000 70000 260000 110000 22500 | 743000 310000 sales Quity in S income total credits
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