Paper Company Scissor Company

Debit Credit Debit Credit i/s

Cash $122,000 $46,000 Sales
Accounts Rece 140,000 60,000 cogs
Inventory 190,000 120,000 Dep exp
Investment
in Scissor 588,000 S&A Exp
Stock
Land 250,000 125,000 Income in sub

Buildings &
875,000 250,000 net income
Equipment

Cost of
250,000 155,000 RE statement
Goods Sold
Depreciation Retained
65,000 12,000
Expense Earnings
S&A Dividends
280,000 50,000
Expense Declared
Dividends
80,000 25,000 NI
Declared

Accumulate
d $565,000 $36,000 RE Ending
Depreciation

Accounts
77,000 27,000 B/S
Payable
Bonds
400,000 100,000 Total Assets
Payable
Common
625,000 250,000 Cash
Stock
Retained
280,000 120,000 AR
Earnings
Sales 800,000 310,000 Inventory

Income from Investment

93,000
Scissor in sub

Land
Total $2,840,000 $2,840,000 $843,000 $843,000 Build &
Equip
Acc Dep
elimating
goodwill
enrty

CS 250,000 Total Assets

RE 120,000 L+OE
Income in Accounts
93,000
sub Payable
Bonds
25,000
dividend Payable
Common
invesment 438,000 Stock
goodwill=520,000 -
RE Ending
(370,000+30,000+10,000)=110,000
Total L+OE
inventory 30,000

Buildings &
Equipment
10,000
goodwilll 110,000
invesment 150,000
cogs 30,000
income 30,000
dep exp 2,000
 800,000 310,000 1,110,000
-250,000 -155,000 30,000 -435,000
-65,000 -12,000 -77,000

-280,000 -50,000
-330,000
93,000 93,000 30,000 30,000

298,000 93,000
298,000

E statement

280,000 120,000 120,000 280,000

-80,000 -25,000 25,000 -80,000

298,000 93,000 298,000

498,000 188,000 498,000

$122,000 $46,000
$168,000

140,000 60,000
$200,000
190,000 120,000 30,000 340,000

588,000 588,000
0
250,000 125,000 375,000

875,000 250,000
10,000 1,135,000
($565,000) ($36,000) ($601,000)
 110,000 110,000

$1,600,000 $565,000 $1,727,000

77,000 27,000 104,000

400,000 100,000 500,000

625,000 250,000 250,000 625,000

498,000 188,000 498,000

1,600,000 565,000 1,727,000