ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Chapter 4, Problem 41P
a.
To determine
Prepare a consolidated income statement for the year ending December 31, 2018.
b.
To determine
Determine the consolidated balance for each of the following accounts as of December 31, 2018:
Goodwill - Equipment (net)
- Building (net)
- Dividends declared
- Common stock
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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:
Gibson
Davis
Sales
$
(782,000
)
$
(403,000
)
Cost of goods sold
316,000
141,000
Operating expenses
241,000
81,000
Dividend income
(24,000
)
0
Net income
$
(249,000
)
$
(181,000
)
Retained earnings, 1/1/21
$
(735,000
)
$
(486,000
)
Net income
(249,000
)
(181,000
)
Dividends declared
60,000
40,000
Retained earnings, 12/31/21
$
(924,000
)
$
(627,000
)
Cash and receivables
$
231,850
$
77,000
Inventory
533,000
222,000
Investment in Davis
618,150
0
Buildings (net)
528,000
692,000
Equipment (net)
463,000
487,000
Total assets
$
2,374,000
$
1,478,000
Liabilities
$
(820,000
)
$
(511,000
)
Common stock
(630,000
)
(340,000
)
Retained earnings, 12/31/21
(924,000
)
(627,000
)
Total liabilities and stockholders' equity
$…
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:
Davis
(381,000)
204,000
69,000
0
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables.
Inventory
Investment in Davis
Buildings (net)
Equipment (net)
Total assets.
Liabilities
Common stock
Retained earnings, 12/31/21
Total liabilities and
stockholders' equity
Gibson
$ (768,000) $
380,000
182,000
(24,000)
$ (230,000) $ (108,000)
(451,000)
(108,000)
40,000
(519,000)
72,000
220,000
$ (761,000) $
(230,000)
50,000
$
$
(941,000) $
$
245,400
582,000
552,600
598,000
443,000
0
640,000
495,000
$1,427,000
(568,000)
(340,000)
(519,000)
$(1,427,000)
$ 2,421,000
$ (850,000) $
(630,000)
(941,000)
$(2,421,000)
Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year
remaining life) was overvalued by…
ollowing are financial statements for Moore Company and Kirby Company for 2021:
Moore
Kirby
Sales
$ (800,000)
$ (600,000)
Cost of goods sold
500,000
400,000
Operating and interest expenses
100,000
160,000
Net income
$ (200,000)
$ (40,000)
Retained earnings, 1/1/21
$ (990,000)
$ (550,000)
Net income
(200,000)
(40,000)
Dividends declared
130,000
–0–
Retained earnings, 12/31/21
$(1,060,000)
$ (590,000)
Cash and receivables
$ 217,000
$ 180,000
Inventory
224,000
160,000
Investment in Kirby
657,000
–0–
Equipment (net)
600,000
420,000
Buildings
1,000,000
650,000
Accumulated depreciation—buildings
(100,000)
(200,000)
Other assets
200,000
100,000
Total assets
$ 2,798,000
$ 1,310,000
Liabilities
$(1,138,000)
$ (570,000)
Common stock
(600,000)
(150,000)
Retained earnings, 12/31/21
(1,060,000)
(590,000)
Total…
Chapter 4 Solutions
ADVANCED ACCOUNTING-LL
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Assuming that Pride, in its internal records,...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 1DYSCh. 4 - Prob. 2DYSCh. 4 - Costco Wholesale Corporation owns and operates...
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