Introduction:
Consolidation of statements:
The result of the parent company, as well as all of the financial positions of its subsidiaries,are reflected in the consolidated statements. It is beneficial for creditors and owners of the parent company to know the outcome of the operations of the parent and its subsidiaries. The intra period purchase under the simple equity method the D &D schedule must be based on the subsidiary
To calculate: 2015 consolidated worksheet including the elimination and adjustments column, consolidated income statement, the NCI, the controlling retained earnings and the consolidated balance sheet. Also, prepare supporting schedules.
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
Advanced Accounting
- On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.arrow_forwardParilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold 50,000 of the bonds for 96. Journalize entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of 1,000 interest on December 31, 2016.arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage LearningIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT