ScholarMatic: Explanation & Answer
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On January 1, 2012, Alpha acquired 80 percent of Delta. Of |
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Delta has made numerous |
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Both Alpha and Delta |
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Following are the individual financial statements for the companies for 2014 with consolidated totals. |
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Alpha Company |
Delta Company |
Omega Company |
Consolidated Totals |
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| Sales | $ | (912,800 | ) | $ | (619,170 | ) | $ | (279,400 | ) | $ | (1,579,370 | ) |
| Cost of goods sold |
518,000 | 263,000 | 104,000 | 656,620 | ||||||||
| Operating expenses |
338,000 | 156,000 | 98,500 | 616,550 | ||||||||
| Income of subsidiary |
(203,200 | ) | (53,830 | ) | 0 | 0 | ||||||
| Separate company net income |
$ | (260,000 | ) | $ | (254,000 | ) | $ | (76,900 | ) | |||
| Consolidated net income |
$ | (306,200 | ) | |||||||||
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Net income attributable to the noncontrolling interest (Delta |
46,043 | |||||||||||
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Net income attributable to the noncontrolling interest (Omega |
19,185 | |||||||||||
| Net income attributable to the Alpha Company |
$ | (240,972 | ) | |||||||||
| Retained earnings, 1/1/14 |
$ | (685,000 | ) | $ | (450,000 | ) | $ | (115,500 | ) | $ | (642,468 | ) |
| Net income (above) |
(260,000 | ) | (254,000 | ) | (76,900 | ) | (240,972 | ) | ||||
| Dividends paid | 50,000 | 40,000 | 60,000 | 50,000 | ||||||||
| Retained earnings, 12/31/14 |
$ | (895,000 | ) | $ | (664,000 | ) | $ | (132,400 | ) | $ | (833,440 | ) |
| Cash and receivables |
$ | 166,700 | $ | 265,040 | $ | 96,400 | $ | 528,140 | ||||
| Inventory | 307,000 | 492,500 | 212,000 | 985,980 | ||||||||
| Investment in Delta Company |
804,800 | 0 | 0 | 0 | ||||||||
| Investment in Omega Company |
0 | 271,460 | 0 | 0 | ||||||||
| Property, plant, and equipment |
494,000 | 377,500 | 271,000 | 1,142,500 | ||||||||
| Copyrights | 0 | 0 | 0 | 318,200 | ||||||||
| Total assets |
$ | 1,772,500 | $ | 1,406,500 | $ | 579,400 | $ | 2,974,820 | ||||
| Liabilities | $ | (677,500 | ) | $ | (622,500 | ) | $ | (347,000 | ) | $ | (1,647,000 | ) |
| Common stock | (200,000 | ) | (120,000 | ) | (100,000 | ) | (200,000 | ) | ||||
| Retained earnings, 12/31/14 |
(895,000 | ) | (664,000 | ) | (132,400 | ) | (833,440 | ) | ||||
| Noncontrolling interest in Delta Company, 12/31/14 |
0 | 0 | 0 | (185,810 | ) | |||||||
| Noncontrolling interest in Omega Company, 12/31/14 |
0 | 0 | 0 | (108,570 | ) | |||||||
| Total liabilities and equities |
$ | (1,772,500 | ) | $ | (1,406,500 | ) | $ | (579,400 | ) | $ | (2,974,820 | ) |
I would like help with preparing the following entries: G, C1
(for investment in Omega Company), C2 (investment in Delta
Company), S1 (investment in Omega Company), S2 (investment in Delta
Company), A, I1 (investment in Delta Company), I2 Investment in
Omega Company), D1 (investment in Delta Company), D2 (investment in
Omega Company), E, TI and G.
ScholarMatic: Explanation & Answer
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