Chapter 08 – Intercompany Indebtedness
P8–16A (continued)
d.
Fern
Corp.
Vincent
Co.
Consolidation
Entries
DR
CR
Consolidated
Income Statement
Sales
300,000
200,000
500,000
Interest income
4,500
4,500
0
Less: Other Expenses
(198,500)
(161,000)
4,000
(363,500)
Less: Interest Expense
(27,000)
(9,000)
4,500
(31,500)
Income from Vincent Co.
18,200
21,000
2,800
0
Consolidated Net Income
97,200
30,000
29,500
7,300
105,000
NCI in Net Income
9,000
1,200
(7,800)
Controlling Interest in Net
Income
97,200
30,000
38,500
8,500
97,200
Statement of Retained Earnings
Beginning Balance
238,800
100,000
100,000
238,800
Net Income
97,200
30,000
38,500
8,500
97,200
Less: Dividends Declared
(60,000)
(10,000)
10,000
(60,000)
Ending Balance
276,000
120,000
138,500
18,500
276,000
Balance Sheet
Cash & Current Receivables
30,300
46,000
2,000
74,300
Inventory
170,000
70,000
240,000
Land, Buildings, & Equipment (net)
320,000
180,000
56,000
12,000
536,000
8,000
Investment in Vincent Co. Stock
144,200
5,600
119,000
0
30,800
Investment in Vincent Co. Bonds
46,500
46,500
0
Total Assets
711,000
296,000
61,600
218,300
850,300
Current Liabilities
35,000
33,000
2,000
66,000
Bonds Payable
300,000
100,000
50,000
350,000
Discount on Bonds Payable
(7,000)
3,500
(3,500)
Common Stock
100,000
50,000
50,000
100,000
Retained Earnings
276,000
120,000
138,500
18,500
276,000
NCI in NA of Vincent Co.
2,400
51,000
61,800
13,200
Total Liabilities & Equity
711,000
296,000
242,900
86,200
850,300
