worksheet entries for 2012
Pollek
Swamp
Income Statement
debit
credit
–
a
sales
4800
Sales
60,000.00
14,000.00
(6,000.00)
68,000.00
Cos
4800
Invest. Income from Swamp
4,600.00
4,600.00
eliminate intercompany sales 2011
2011
Gain on equipment sale
800.00
(800.00)
–
b
Cos
600
Cost of Sales
(26,000.00)
(4,400.00)
(600.00)
6,000.00
(25,000.00)
Inventory
600
400.00
defer unrealized profits in ending inventory
2012
Other expenses
(28,000.00)
(3,600.00)
200.00
(31,400.00)
–
c
Investmentt in subsidiary
400
–
Cos
400
Noncontrolling interest share
–
to recongnize profit in B/I fr 2011
Net income
11,400.00
6,000.00
(7,400.00)
6,600.00
16,200.00
d
Gain on sale equipment
800
Retained Earnings 1/1
9,500.00
5,000.00
(5,000.00)
9,500.00
Equipment
800
net income
11,400.00
6,000.00
17,400.00
Eliminate gain on IC sale of equipment
dividends
(7,000.00)
(2,000.00)
(9,000.00)
Retained Earnings 12/31
13,900.00
9,000.00
(5,000.00)
–
17,900.00
sales
6000
–
e
Cos
6000
BS
–
eliminate intercompany sales
Cash
5,500.00
3,000.00
4,500.00
13,000.00
Receivables
7,000.00
4,000.00
(4,500.00)
6,500.00
inv
10,000.00
4,500.00
(600.00)
13,900.00
f
Equipment
200
Equipment
24,000.00
9,000.00
200.00
(800.00)
32,400.00
Other Expenses
200
land
4,000.00
3,500.00
7,500.00
Depreciation on unrealized gain on equip.
Invest in Swamp
20,400.00
600.00
(16,200.00)
4,800.00
Goodwill
4,500.00
4,500.00
g
Cash
4500
total
70,900.00
24,000.00
9,800.00
(22,100.00)
82,600.00
Accounts receivable
4500
–
Partial payment on 2012 merchandise
AP
(7,000.00)
(5,000.00)
(12,000.00)
Capital stock
(50,000.00)
(10,000.00)
10,000.00
(50,000.00)
capital Stock
10000
RE
(13,900.00)
(9,000.00)
17,900.00
3,000.00
Retained Earnings
5000
NCI 1/1
(3,300.00)
(3,300.00)
(1,300.00)
Goodwill
4500
NCI 12/31
–
NCI
3,300.00
total
(70,900.00)
(24,000.00)
10,000.00
(3,300.00)
(47,400.00)
Investment in Swamp
16,200.00
-4800
4800
600
-400
Investment
16,200.00
800
90%
Retained Earnings
-200
Implied fair value of Pollek
18,000.00
Book value of Swamp
(13,000.00)
Goodwill
5,000.00
2011
Income from sub (4000*90%)
3,600.00
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