Parent Company hw


Parent and Subsidiary Company
Consolidation Worksheet
	Parent Company	Subsidiary Company	Adjustments		Consolidated
			Dr	Cr
Sales Revenue	750 000	245 000	107 000		888 000
Less: Cost of Goods Sold	-330 000	-160 000		100 000	-390 000
Selling Expenses	-100 000	-45 000			-145 000
Administrative Expenses	-120 000	-70 000		7 000	-183 000
Interest Expense	-24 000	-5 000			-29 000
Income from subsidiary	-35 000		-35 000		-
Consolidated net income	141 000	-35 000	72 000	107 000	141 000

Statement of Retained earnings
Beginning Balance	482 000	50 000	50 000		482 000
Net Income	141 000	-35 000	-35 000		141 000
Less: Dividend declared	-	-			-
Ending Balance	623 000	15 000

Balance sheet
Assets
Cash	10 000	4 000	-	-	14 000
Accounts Receivable	25 000	10 000		10 000	25 000
Inventory	30 000	12 000	25 000	5 000	62 000
Short-Term Investments	40 000	6 000			46 000
Prepaid Assets	35 000	12 000			47 000
Investment in Subsidiary	255 000		50 000	215 000	-
				90 000
Long-Term Notes Receivable	150 000	14 000		100 000	64 000
Debt Service Fund	50 000				50 000
Depreciable Assets	900 000	350 000	50 000		1 300 000
Accumulated Depreciation	-200 000	-50 000	20 000		-230 000
Intangible Assets	45 000	20 000		50 000	15 000
Total Assets	1 340 000	378 000			1 393 000

Liabilities & Shareholder's Equity
Current Liabilities	92 000	44 000	10 000		126 000
Long-Term Notes Payable	225 000	119 000	100 000		244 000
Common Stock	400 000	200 000	200 000		400 000
Retained Earnings	623 000	15 000	15 000		623 000
Total Liabilities and Equity	1 340 000	378 000	470 000	470 000	1 393 000

Parent Company

NOT RATED

Purchase the answer to view it