Make consolidation worksheet entry a would require a debit

Reference no: EM132778953

On January 1, 2018, Parent Co. acquired 80% of Sub Inc. by paying $800,000. Non-controlling interest was valued at $200,000. Sub reported common stock on that date of $520,000 with retained earnings of $352,000. A building was undervalued in the company's financial records by $18,000. This building had a ten-year remaining life. Copyrights of $80,000 were not recognized and should be amortized over 20 years.

Sub earned income and paid cash dividends as follows:

Net Income Dividends Paid

2018        $115,000                  $64,600
2019        $144,400                 $71,600
2020 $164,000    $94,000

On December 31, 2020, the Parent owed $20,800 to Sub Inc. There have been no changes in Sub's common stock account since the acquisition.

Problem 1: Consolidation Worksheet Entry S would require a debit to Retained Earnings-S for:

Problem 2: Consolidation Worksheet Entry S would require a credit to Non-controlling Interest for

Problem 3: Consolidation Worksheet Entry A would require a credit to Non-controlling Interest for:

Problem 4: Consolidation Worksheet Entry A would require a debit to Building for

Reference no: EM132778953

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