FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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a. Prepare a consolidated income statement for the year ending December 31, 2021.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2021:
Goodwill
Equipment (net)
Common stock
Buildings (net)
Dividends declared
Complete this question by entering your answers in the tabs below.
Answer is complete but not entirely correct.
Required A Required B
Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.)
Consolidated Income Statement
For the Year Ending December 31, 2021
Revenues
Cost of goods sold
Operating expenses
Consolidated net income
Noncontrolling interest in CNI
Controlling interest in CNI
$ 533,000
222,050
$1,053,750
755,050
298,700
27,720
$ 270,980
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Transcribed Image Text:a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI $ 533,000 222,050 $1,053,750 755,050 298,700 27,720 $ 270,980
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:
Davis
(381,000)
204,000
69,000
0
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables.
Inventory
Investment in Davis
Buildings (net)
Equipment (net)
Total assets.
Liabilities
Common stock
Retained earnings, 12/31/21
Total liabilities and
stockholders' equity
Gibson
$ (768,000) $
380,000
182,000
(24,000)
$ (230,000) $ (108,000)
(451,000)
(108,000)
40,000
(519,000)
72,000
220,000
$ (761,000) $
(230,000)
50,000
$
$
(941,000) $
$
245,400
582,000
552,600
598,000
443,000
0
640,000
495,000
$1,427,000
(568,000)
(340,000)
(519,000)
$(1,427,000)
$ 2,421,000
$ (850,000) $
(630,000)
(941,000)
$(2,421,000)
Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year
remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $368,400.
Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021.
a. Prepare a consolidated income statement for the year ending December 31, 2021.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2021:
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Transcribed Image Text:Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Davis (381,000) 204,000 69,000 0 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables. Inventory Investment in Davis Buildings (net) Equipment (net) Total assets. Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson $ (768,000) $ 380,000 182,000 (24,000) $ (230,000) $ (108,000) (451,000) (108,000) 40,000 (519,000) 72,000 220,000 $ (761,000) $ (230,000) 50,000 $ $ (941,000) $ $ 245,400 582,000 552,600 598,000 443,000 0 640,000 495,000 $1,427,000 (568,000) (340,000) (519,000) $(1,427,000) $ 2,421,000 $ (850,000) $ (630,000) (941,000) $(2,421,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $368,400. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021:
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