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Acct 559 Course Project Part 3

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Question;lass Project Part 3Due Date: August 23, 2014Intercorporate Transfer of InventoryBarrett Corporation was created on January 1, 2005, to develop computer software. On January 1, 2010, Thomas Company purchased 90 percent of Barrett?s common stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of Barrett?s book value. Trial balances for Thomas and Barrett on December 31, 2012, are as follows:2012 Trial Balance DataThomas Company Barrett CorporationDebit Credit Debit CreditCash $ 187,000 $ 57,400Accounts Receivable 80,000 90,000Other Receivables 40,000 10,000Inventory 137,000 130,000Land 80,000 60,000Buildings and Equipment 500,000 250,000Investment in Block Corp. Stock 234,900Cost of Goods Sold 593,000 270,000Depreciation Expense 45,000 15,000Other Expenses 95,000 75,000Dividends Declared 40,000 20,000Accumulated Depreciation $ 155,000 $ 75,000Accounts Payable 63,000 35,000Other Payables 95,000 20,000Bonds Payable 250,000 200,000Bond Premium 2,400Common Stock 210,000 50,000Additional Paid-In Capital 110,000Retained Earnings 235,000 165,000Sales 815,000 415,000Other Income 26,000 15,000Income from Subsidiary 72,900 ______________________Total $ 2,031,900 2,031,900 $977,400 $ 977,400During 2012, Barrett purchased inventory for $20,000 and sold it to Thomas for $30,000. Thomas resold 60 percent of the inventory in 2012. Also in 2012, Thomas sold inventory purchased from Barrett in 2012. It had cost Barrett $60,000 to produce the inventory, and Thomas purchased it for $75,000. Assume Thomas uses the equity method of accounting.Required:a. What amount of cost of goods sold will be reported in 2012 consolidated income statement?b. What inventory balance will be reported in December 31, 2012 consolidated balance sheet.c. What amount of income will be assigned to noncontrolling shareholders in the 2012 consolidated income statement?d. What amount will be assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 2012?e. What amount of retained earnings will be reported in the consolidated balance sheet at December 31, 2012?f. Prepare all elimination entries required to prepare a consolidated worksheet.g. Prepare a consolidated worksheet at December 31, 2012.

 

Paper#40661 | Written in 18-Jul-2015

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