a. Explanation Worksheet to consolidate the separate 2015 financial statements for Company G and Company K: Company G and Company K Consolidation Worksheet Year ending December 31, 2015 Income statement Company G Company K Debit Credit Non-controlling interest Consolidated Balances Revenues ($800,000) ($500,000) $200,000 ($1,100,000) Cost of goods sold $500,000 $300,000 $12,000 $10,000 $602,000 $200,000 Operating expense $100,000 $60,000 E 5,000 $165,000 Equity in income of Company K ($84,000) I 84,000 $0 Net income ($284,000) ($140,000) Consolidated net income ($333,000) Share of non-controlling interest in net income ($53,200) $53,200 Share of controlling interest in net income ($279,800) Balance Sheet Cash $177,000 $90,000 $267,000 Accounts Receivables $356,000 $410,000 $40,000 $726,000 Inventory $440,000 $320,000 $12,000 $748,000 Investment in Company K $726,000 $0 D 36,000 $9,000 $612,000 $84,000 $57,000 Land $180,000 $390,000 $40,000 $530,000 Building and equipmen... b. To determine Explain how the consolidation entries in requirement (a) would have differed if Company G had sold a building with a $60,000 book value (cost of $140,000) to Company K for $100,000 instead of land.

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ISBN: 9781307007350

Author: Hoyle

Publisher: MCG/CREATE

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Question

Chapter 5, Problem 35P

To determine

Prepare a worksheet to consolidate the separate 2015 financial statements for Company G and Company K.

To determine

Explain how the consolidation entries in requirement (a) would have differed if Company G had sold a building with a $60,000 book value (cost of $140,000) to Company K for $100,000 instead of land.

Expert Solution & Answer

Chapter 5 Solutions

FUNDAMENTALS OF ADVANCED ACCOUNTING >I

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6Q Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

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