Accounting

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On January 1, 201X, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Plimsol uses the cost method in accounting for its investment in Shipping. Shipping's reported retained earnings of $75,000 on the date of acquisition. The trial balances for Plimsol Company and Shipping Corporation as of December 31, 201X, follow:

Machine generated alternative text: Plinisol Co. Siìippin2 Corp. Debit (‘redit Dehit (‘redil Cuneni Assets S160.000 $115.000 Depreciable Assets (net) 180.00() 135,00() Investment in Shipping Coq. 125.000 Other Expenses $5.000 60.000 Depreciation Expense 20.000 15.000 Dividends Declared 30.000 15.000 Current Liabilities $ 25_000 S 20.000 Long-Term Debt 75.000 50.000 Common Stock 1 00.000 50.000 Retained Earnings 210.000 100.000 175.000 120.000 I)ividend Income _______________ 1 5.000 _______________ _______________ 5600.000 $600.000 $340.000 $34( ).000

 

 

 

(Source: Baker, Christensen, & Cottrell, 2012)

1. Provide all eliminating entries required to prepare a full set of consolidated statements for 201X.

1. Prepare a three-part consolidation worksheet in good form as of December 31, 201X.

Submit your responses in MSWord as one document. Label each section clearly. For written answers, please make sure your responses are well written, adhere to  CSU-Global APA formatting and writing expectations , and have the proper citation, if needed.