Create the workpaper eliminating entries

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Reference no: EM1376469

On 1st January, 2014, Prince Company purchased an 80 percent interest in the common stock of Sivet Company for $1,040,000, which was $60,000 greater than book value of equity acquired. The difference between book and implied value relates to the subsidiary's land.

The subsequent information is from the consolidated retained earnings section of consolidated statements work paper for the year ended 31st December, 2014:

SIVET
CONSOLIDATED
COMPANY
BALANCES
1/01/14 retained earnings
$300,000
$1,400,000
Net income
220,000
680,000
Dividends declared
(80,000)

(140,000)
12/31/14 retained earnings
$440,000
$1,940,000
Sivet's stockholders' equity adds only common stock and retained earnings.

Required:
A. Create the workpaper eliminating entries for a consolidated statements workpaper on 31st December, 2014. Prince uses the cost method.

B. Evaluate the total no controlling interest to be reported on the consolidated balance sheet on 31st December, 2014.

Reference no: EM1376469

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