Chapter 07 – Intercompany Transfers of Noncurrent Assets and Services
d.
Rossman
Corp.
Schmid
Dist.
Consolidation Entries
DR
CR
Consolidated
Income Statement
Sales
4,801,000
985,000
5,786,000
Other Income or Loss
90,000
(35,000)
80,000
40,000
15,000
Less: COGS
(2,193,000)
(525,000)
(2,718,000)
Less: Depreciation & Amort.
Expense
(202,000)
(88,000)
4,000
(294,000)
Less: Other Expenses
(1,381,000)
(227,000)
80,000
(1,528,000)
Income from Schmid Dist.
109,500
109,500
0
Consolidated Net Income
1,224,500
110,000
193,500
120,000
1,261,000
NCI in Net Income
36,500
(36,500)
Controlling Interest in NI
1,224,500
110,000
230,000
120,000
1,224,500
Statement of Retained Earnings
Beginning Balance
1,474,800
1,400,000
1,400,000
1,474,800
Net Income
1,224,500
110,000
230,000
120,000
1,224,500
Less: Dividends Declared
(50,000)
(20,000)
20,000
(50,000)
Ending Balance
2,649,300
1,490,000
1,630,000
140,000
2,649,300
Balance Sheet
Cash
50,700
38,000
88,700
Current Receivables
101,800
89,400
23,750
167,450
Inventory
286,000
218,900
504,900
Land
400,000
1,200,000
56,000
23,000
1,633,000
Buildings & Equipment
2,400,000
2,990,000
185,000
5,575,000
Less: Accumulated Depr.
(1,105,000)
(420,000)
145,000
(1,674,000)
4,000
Investment in Schmid Dist.
2,974,000
23,000
2,907,000
0
90,000
Goodwill
64,000
64,000
Total Assets
5,107,500
4,116,300
328,000
3,192,750
6,359,050
Current Payables
86,200
76,300
23,750
138,750
Bonds Payable
1,000,000
200,000
1,200,000
Common Stock
100,000
1,000,000
1,000,000
100,000
Additional Paid-in Capital
1,272,000
1,350,000
1,350,000
1,272,000
Retained Earnings
2,649,300
1,490,000
1,630,000
140,000
2,649,300
NCI in NA of Schmid Dist.
969,000
999,000
30,000
Total Liabilities & Equity
5,107,500
4,116,300
4,003,750
1,139,000
6,359,050
