User Account

All Pages

Amount for consolidated financial statements

Assignment Help Accounting Basics
Reference no: EM13115854

Shine Corporation purchased 30 percent of the common stock of Ash Corporation on January 1, 2007, at $28,000 in excess of underlying book value. The excess is attributable to equipment with a remaining useful life of 2 years. The companies reported the following operating results and dividends for the three years following the date of purchase:

    Shine   Ash
Year   Operating Income    Dividends    Net Income    Dividends
2007   1,000,000   130,000   400,000   40,000
2008   960,000   140,000   300,000   40,000
2009   1,200,000   140,000   500,000   22,000
Barnes Company acquired 80% of the outstanding voting stock of Dean Company on January 1, 2008. During 2008 Dean Company sold inventory costing $50,000 to Barnes Company for $80,000. Barnes Company continued to hold the inventory at December 31, 2008. Also during 2008, Barnes Company sold merchandise costing $400,000 to nonaffiliates for $600,000, and on its separate balance sheet reported total inventory at year end of $140,000. In its separate financial statements, Dean Company reported total sales and cost of goods sold of $350,000 and $220,000, respectively, for 2008 and ending inventory of $50,000.
Required: Based on the above information, compute the amounts that should appear in the consolidated financial statements prepared for Barnes Company and it subsidiary, Dean Company, at year end for the following items: 1) sales; 2) cost of goods sold; 3) gross profit on sales; 4) inventory.

Reference no: EM13115854

Questions Cloud

State whether the test is unilateral or bilateral : Tthe hypothesis test used (normal curve, single sample t-test, dependent samples t-test, independent samples t-test, ANOVA). For situations 1, 3, 4, and 5, also state whether the test is unilateral or bilateral.
Illustrate what are their speeds as the rod swings : The system is released from rest with the rod horizontal. If the animals can manage to hold on, illustrate what are their speeds as the rod swings through a vertical position?
Explain to what extent should government intervene : Explain To what extent should government intervene in the economy? Are there limits to governmental oversight of corporations? Does regulation diminish the ability of businesses to thrive and compete in the global marketplace?
Capm-required rate of return on stock : Assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent. What is the required rate of return on a stock that has a beta of 1.2?
Amount for consolidated financial statements : Required: Based on the above information, compute the amounts that should appear in the consolidated financial statements prepared for Barnes Company and it subsidiary, Dean Company, at year end for the following items: 1) sales; 2) cost of goods sol..
What is the molarity : Concentrated HCl is 36.5% HCl by mass and has a density of 1.18 g/mL.What is the molality?What is the molarity?
Description of price of stock : A share of common stock just paid a dividend of $3.25 per share. The expected long-run growth rate for this stock is 18%. If investors require a rate of return of 24%, what should the price of the stock be?
Consider any experimental weaknesses in their approach : Many scientists were reluctant to accept the results of Avery, MacLeod, and McCarty's experiments showing that DNA (rather than protein) was the transforming principle. Why?
Stock price and tax advantage : The Carlton Corporation has $4 million in earnings after taxes and 1 million shares outstanding. The stock trades at a P/E ratio of 20. THE firm has $3 million in excess cash.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Issuance of bonds and payment of interest

On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record

  Amount of accumulated depreciation and current ratio

A company has current assets of $45,000, current liabilities of $30,000, and total liabilities of $55,000. The current ratio is:

  Current taxable on gifts

Total 2008 gift of life insurance policy is 72,000. annual exclusions are 24,000 (two donees at 12,00). Current taxable gifts equal 48,000.

  Warrant value of charles river company

Charles River Company has just sold a bond issue with 10 warrants attached. The bonds have a 20-year maturity, an annual coupon rate of 12.0 percent, and they sold at their $1,000 par value.

  Deviation from gaap

Is it possible to deviate from Generally Accepted Accounting Principles (GAAP) and the accounting cycle and still prepare financial statements? What are some possible consequences of this course of action?

  Accounting for uncollectible accounts-allowance method

Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the ..

  Define the following persons'' role in an agency

Explain the difference between the role of the Account Executive and the Account Planner within an agency Define the following persons' role in an agency

  Federal income tax liability for pace

Pace Corporation had a taxable income of $300,000 in 2010. They had a taxable income of $1,200,000 in 2011. What is their federal income tax liability for the company for each year?

  Cash and stock dividend journal entries

The books of Conchita Corporation carried the following account balances as of December 31, 2010. Prepare the journal entries required for the dividend declaration and payment assuming that they occur simultaneously.

  Method of amortising discounts and premiums

The firm uses the effective interest method of amortising discounts and premiums. The bonds were sold to yield an effective interest rate of 10%.

  Calculating cost of goods sold and ending inventory

Stan's Wholesale buys canned tomatoes from canneries and sells them to retail markets. During August 2009, Stan's inventory records showed the following: Calculate the cost of goods sold and ending inventory using the following cost flow alternati..

  Adjusting entry for the end of the year

There was $800 of supplies on hand at the end of the year. Prepare the adjusting entry for the end of the year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd