Question;Week 6 -- Consolidated Financials ?;Consolidation work and financial statements subsequent to;acquisitionAssignment;Background and Information;Palus Corporation acquired 90 percent of Stalus Company's voting stock on;January 1, 2010. The price paid was $145,000. The excess of costs over book;value was $10,000, which should be attributed to goodwill and must be amortized;over 10 years. The fair value of the non-controlling (minority) interest was;equal to 10 percent of the book value of Stalus at that date. Palus uses the;equity method in accounting for its ownership of Stalus during the year 2010.;Income during the year was $30,000 for Stalus and the company also declared;dividends of $10,000. On December 31, 2010, the trial balances of the two;companies are as follows;Palus Corporation;Stalus Corporation;Item;Debit;Credit;Debit;Credit;Current Assets;$173,000;$105,000;Depreciable Assets;500,000;300,000;Investment in Stalus Company;163,000;Dividends Declared;10,000;Accumulated Depreciation;175,000;75,000;Current Liabilities;171,000;115,000;Long-Term Debt;100,000;45,000;Common Stock;200,000;100,000;Retained Earnings;123,000;50,000;Sales;100,000;80,000;Expenses;60,000;50,000;Income from Subsidiary;27,000;$896,000;$896,000;$465,000;$465,000;Required;A.Prepare all eliminating journal entries required as of December 31;2010, to prepare the consolidated worksheet.;B.Prepare a condensed consolidation worksheet showing the trial balance;eliminations and adjustments, controlling retained earnings, controlling income;statement, and consolidated balance sheet.;C.Prepare the formal consolidated balance sheet, income statement, and;retained earnings statements as of December 31, 2010.
Paper#40881 | Written in 18-Jul-2015Price : $22