Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Income Statement Pruitt Corporation S PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31, 2016 Sedbrook Company Debit Eliminations S Credit Noncontrolling Interest S Consolidated Balances

Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Income Statement Pruitt Corporation S PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31, 2016 Sedbrook Company Debit Eliminations S Credit Noncontrolling Interest S Consolidated Balances

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
See similar textbooks
icon
Related questions
Question
Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $544, 590 on January 1, 2012, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for the two companies at December 31, 2016, are presented here: The January 1, 2016, inventory of Sedbrook Company includes $30, 200 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $200,700 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $49,800. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)
Transcribed Image Text:Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $544, 590 on January 1, 2012, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for the two companies at December 31, 2016, are presented here: The January 1, 2016, inventory of Sedbrook Company includes $30, 200 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $200,700 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $49,800. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)
Income Statement Cost of Goods Sold: Retained Earnings Statement Balance Sheet V 1/1 Noncontrolling Interest Cash 12/31 Noncontrolling Interest Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Purchases Other Expenses Accounts Payable Other Liabilities Common Stock Retained Earnings (1/1) Sales Equity in Subsidiary Income Ending Inventory Pruitt Corporation Pruitt Corporation $83,400 Sedbrook Company 211,800 149,800 566,220 499.400 100,100 845,000 180,500 $70,400 74,200 793,900 527,100 1,109,700 60,920 $2,636,220 $2,636,220 $1,218,500 $201,800 PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31,2016 Debit Sedbrook Company $79,500 113,000 110,500 Eliminations 397,800 29.900 349,100 138,700 $30,200 39,900 505,100 119,800 523,500 $1,218,500 $120,000 Credit Noncontrolling Interest Consolidated Balances
Transcribed Image Text:Income Statement Cost of Goods Sold: Retained Earnings Statement Balance Sheet V 1/1 Noncontrolling Interest Cash 12/31 Noncontrolling Interest Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Purchases Other Expenses Accounts Payable Other Liabilities Common Stock Retained Earnings (1/1) Sales Equity in Subsidiary Income Ending Inventory Pruitt Corporation Pruitt Corporation $83,400 Sedbrook Company 211,800 149,800 566,220 499.400 100,100 845,000 180,500 $70,400 74,200 793,900 527,100 1,109,700 60,920 $2,636,220 $2,636,220 $1,218,500 $201,800 PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31,2016 Debit Sedbrook Company $79,500 113,000 110,500 Eliminations 397,800 29.900 349,100 138,700 $30,200 39,900 505,100 119,800 523,500 $1,218,500 $120,000 Credit Noncontrolling Interest Consolidated Balances
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SEE MORE TEXTBOOKS