Complete consolidation working papers for powell corporation

Assignment Help Financial Accounting

Reference no: EM13864143

Powell Corporation acquired 90% of the voting stock of Santer Corporation on January 1, 2014 for $11,700 when Santer had Capital Stock of $5,000 and Retained Earnings of $4,000. The amounts reported on the financial statements approximated fair value, with the exception of inventories, which were understated on the books by $500 and were sold in 2014, land which was undervalued by $1,000, and equipment with a remaining useful life of 5 years under the straight-line method, which was undervalued by $1,500. Any remainder was assigned to goodwill.

Financial statements for Powell and Santer Corporations at the end of the fiscal year ended December 31, 2015 appear in the first two columns of the partially completed consolidation working papers. Powell has accounted for its investment in Santer using the equity method of accounting. Powell Corporation owed Santer Corporation $100 on open account at the end of the year. Dividends receivable in the amount of $450 payable from Santer to Powell is included in Powell's net receivables.

Complete the consolidation working papers for Powell Corporation and Subsidiary for the year ended December 31, 2015.

Reference no: EM13864143

Questions Cloud

What is the markup percentage : If a retailer buys a product for $30 and sells it for $50, what is the markup percentage, if the markup is based on Cost? If based on Retail?

What are the advantages of 3d-printing : What are the advantages of 3D-Printing and what are the disadvantages?

Do you think this may be why the recidivism is so high : They go through treatment while in jail, and when released to come home. he or she starts hanging around with the same friends as before that does drugs, I feel this would put pressure on the person and he or she would return to his or her old hab..

Statement of comprehensive income using one statement : Roxanne Carter Corporation reported the following for 2014: net sales $1,205,000; cost of goods sold $721,000; selling and administrative expenses $321,800; and an unrealized holding gain on available-for-sale securities $22,000. Prepare a statement ..

Complete consolidation working papers for powell corporation : Powell Corporation acquired 90% of the voting stock of Santer Corporation on January 1, 2014 for $11,700 when Santer had Capital Stock of $5,000 and Retained Earnings of $4,000. Complete the consolidation working papers for Powell Corporation and Sub..

Cars speeding before the collision : If the speed limit on this road is 30 mph = 13.4 m/s, was either of the cars speeding before the collision? For full points, your answer must include a correct numerical calculation.

Do you agree the services offered by hmo : Do you agree or disagree that the behavioral healthcare services covered by HMOs are considered adequate for patients with mental illness? Why? Compared to the services offered in public community mental health services, do you agree the services ..

Audited financial statement : Gates Inc. has its reviewed interim financial information included with the audited financial statement. However, after the review the auditor believes that the interim financial information is not prepared in accordance with an applicable financial ..

Difference between mass surveillance and targeted surveillan : What is the difference between mass surveillance and targeted surveillance?

User Account

All Pages