Solution-Prepare the consolidated income statement

Prepare the consolidated income statement

Assignment Help Accounting Basics

Reference no: EM132464124

Problem - Equity method, second year, eliminations, income statement

The trial balances of Parker and Sargent companies for December 31, 2016, are presented as follows:

	Parker	Sargent
Current Assets	102,000	115,000
Depreciable Fixed Assets	400,000	200,000
Accumulated Depreciation	(130,000)	(40,000)
Investment in Sargent Company	320,000
Current Liabilities	(80,000)
Common Stock ($ 10 par)	(300,000)	(100,000)

	Parker	Sargent
Retained Earnings, January 1, 2016	(260,000)	(170,000)
Sales	(200,000)	(100,000)
Expenses	160,000	85,000
Subsidiary Income	(12,000)
Dividends Declared		10,000
Totals	0	0

Parker Company continues to use the simple equity method.

1. Prepare all the eliminations and adjustments that would be made on the 2016 consolidated worksheet.

2. Prepare the 2016 consolidated income statement and its related income distribution schedules.

Reference no: EM132464124

Questions Cloud

What concepts to be applied to accounting for income taxes : What concepts to be applied to accounting for income taxes.Do you agree with this policy? Why or why not? Which accounting principles are best served

What is the probability of getting the red ball : Suppose that there are four balls. They are in color red, red, blue and green. Two balls are drawn one by one randomly without replacement.

Determine the amount of the annual lease payments : Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as right-of-use asset and a lease liability

Describe all of the potential benefits that nationstate : List and describe all of the potential benefits (and costs) that Nationstate would realize from the establishment of an enterprise wide architecture

Prepare the consolidated income statement : Parker Company continues to use the simple equity method. Prepare the 2016 consolidated income statement and its related income distribution schedules

What is the pmf of the number of base stations : What is the PMF of the number of base stations that are in use at any given time

Find the probability of waiting between two and five minutes : State the random variable. The random variable is the waiting time during peak hours.

Calculate the standard deviation for group : A researcher tested two groups (females and males) of rats on memory performance. The following scores are for the number of correct choices they made

Create a lease amortization schedule : Create a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022

User Account

All Pages

Prepare the consolidated income statement

Reference no: EM132464124

Reference no: EM132464124

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT