Create the workpaper eliminating entries

Assignment Help Auditing

Reference no: EM1376469

On 1^st January, 2014, Prince Company purchased an 80 percent interest in the common stock of Sivet Company for $1,040,000, which was $60,000 greater than book value of equity acquired. The difference between book and implied value relates to the subsidiary's land.

The subsequent information is from the consolidated retained earnings section of consolidated statements work paper for the year ended 31^st December, 2014:

SIVET
CONSOLIDATED
COMPANY
BALANCES
1/01/14 retained earnings
$300,000
$1,400,000
Net income
220,000
680,000
Dividends declared
(80,000)

(140,000)
12/31/14 retained earnings
$440,000
$1,940,000
Sivet's stockholders' equity adds only common stock and retained earnings.

Required:
A. Create the workpaper eliminating entries for a consolidated statements workpaper on 31^st December, 2014. Prince uses the cost method.

B. Evaluate the total no controlling interest to be reported on the consolidated balance sheet on 31^st December, 2014.

Reference no: EM1376469

Questions Cloud

Pre-determined overhead rate in assembly department : Spacer Company has 2 service departments and two operating departments. Budgeted costs and budgeted activity in the several departments

Collective bargaining for the employer and the employee : Discuss and explain the advantages and disadvantages of collective bargaining for the employer and the employee.

Computing sales forecasts : The following given table are actual sales of units for 6-months and a starting forecast in January.

Prepare journal entries for pure company : Prepare journal entries for Pure Company for 2013 and 2014 assuming Pure uses the cost method to record its investment

Create the workpaper eliminating entries : Create the workpaper eliminating entries for a consolidated statements workpaper on 31 st December, 2014. Prince uses the cost method and evaluate the total no controlling interest to be reported on the consolidated balance sheet on 31 st December,..

Healthcare strategies : As healthcare undergraduate students many of you make a decision to further your education and even obtain Doctoral degrees. This project is to give an idea and to envision you applying for a doctoral event.

Discuss the steps of business research : Discuss and explain the most important steps that a business researcher should take in order to maximize quality of his or her work?

Show audit areas that have the highest risk : Show audit areas that have the highest risk for potential litigation and liability for public accounting firms and prepare two best practices for public accounting firms to minimize the risk to liability exposure.

Annual cash outflow for operating costs : He guesses that the equipment could be sold at that time for 4 percent of its original cost. Jim uses a 16 percent discount rate.

User Account

All Pages