Chapter 08 – Intercompany Indebtedness
P8-23A (continued)
Bond Consolidation Entry:
Bonds Payable
50,000
Bond Premium
7,000
Investment in Brown Bonds
50,000
Gain on Bond Retirement
7,000
Tyler
Brown
Corp.
Consolidation
Entries
DR
CR
Consolidated
Income Statement
Sales
400,000
200,000
600,000
Gain on Bond
Retirement
7,000
7,000
Less: Interest Expense
(20,000)
(20,000)
(40,000)
Less: Operating
Expenses
(302,200)
(150,000)
400
(451,800)
Income from Brown
Corp.
22,440
22,440
0
Consolidated Net
Income
100,240
30,000
22,440
7,400
115,200
NCI in Net Income
14,960
(14,960)
Controlling Interest in
Net Income
100,240
30,000
37,400
7,400
100,240
Statement of Retained Earnings
Beginning Balance
146,640
50,000
50,000
146,640
Net Income
100,240
30,000
37,400
7,400
100,240
Less: Dividends
Declared
(40,000)
(10,000)
10,000
(40,000)
Ending Balance
206,880
70,000
87,400
17,400
206,880
Balance Sheet
Cash
68,000
55,000
123,000
Accounts Receivable
100,000
75,000
175,000
Inventory
120,000
110,000
230,000
Depreciable Assets
(net)
360,000
210,000
400
15,600
564,800
10,000
Investment in Brown
Corp. Bonds
50,000
50,000
0
Investment in Brown
Corp. Stock
103,080
3,360
106,440
0
Total Assets
801,080
450,000
13,760
172,040
1,092,800
Accounts Payable
94,200
52,000
146,200
Bonds Payable
200,000
200,000
50,000
350,000
Bond Premium
28,000
7,000
21,000
Common Stock
300,000
100,000
100,000
300,000
Retained Earnings
206,880
70,000
87,400
17,400
206,880
NCI in NA of Brown Co.
2,240
70,960
68,720
Total Liab. & Equity
801,080
450,000
246,640
88,360
1,092,800
