Capital Stock, 10 par, 60,000 shares issued&outstanding 600,000

Additional Paid In Capital 150,000

Retained Earnings 250,000
Total Stockholder's Equity 1,000,000

On January 1, 2019, B Corporation purchased 20,000 previously unissued shares of T stock directly fro

B Corporation
Investment in Associate 500,000
Cash 500,000
T Corporation
Cash 500,000
Additional Paid In Capital 200,000
Retained Earnings 300,000

Shares Outstanding 60,000

Shares Issued 20,000
Total Shares Outstanding 80,000

B. Percentage Owned in T Corp. 20,000

25%
80,000
C. Excess
100% 500,000
25% owned by B Corporation 125,000
75% excess 375,000
ed shares of T stock directly from T Corporation for 500,000

D-A:
B Corporation
Investment in Associate 500,000
Cash 500,000
T Corporation
Cash 500,000
Additional Paid In Capital 200,000 No ID No Entry
Retained Earnings 300,000

B. Percentage Owned in T Corp. 20,000

33.33%
60,000
C. Excess
100% 500,000
33.33% owned by B Corporation 166,650
66.67% excess 333,350
No ID No Entry
Assets: Liabilities and Equity:
Current Assetss 150,000 Liabilities 100,000
Investment in Saturn Company 160,000 Common Stock 500,000
Property, Plant and Equipment 390,000 Retained Earnings 100,000
Total Assets 700,000 Total Liab and SHE 700,000

original cost of an 80% interest (40,000 shares).

BV
SHE 150,000
 Palo Corp Sebo Corp
Debit Credit Debit Credit
Cash 37,000 20,000
Accounts Receivable 50,000 30,000
Inventory 70,000 60,000
Buildings and Equipment 300,000 240,000
Investment in Sebo Company 229,000
Cost of Goods Sold 210,000 85,000
Depreciation Expense 25,000 20,000
Other Expenses 23,000 25,000
Dividends Declared 20,000 10,000
Accumulated Depreciation 105,000 65,000
Accounts Payable 40,000 20,000
Taxes Payable 70,000 55,000
Common Stock 200,000 150,000
Retained Earnings, January 1 230,000 50,000
Sales 300,000 150,000
Investment Income 19,000
964,000 964,000 490,000 490,000

Consideration 220,000
FVNA 200,000
Goodwill 20,000

Comprehensive Income
Palo: 61,000
Sebo: 20,000
Consolidated: 62,000

Retained Earnings
Palo: 271,000
Sebo: 60,000
Consolidated: 272,000
SFP 827,000
 CONSOLIDATED FINANCIAL STATEMENTS
Palo Corp Sebo Corp
Income Statement

Sales 300,000 150,000

Investment Income 19,000 0
Total Revenue 319,000 150,000

Cost of Goods Sold 210,000 85,000

Depreciation Expense 25,000 20,000
Other Expenses 23,000 25,000
Total Cost and Expenses 258,000 130,000

Total Comprehensive Income 61,000 20,000

Statement of Retained Earnings

Retained Earnings, January 1

Palo Corporation 230,000
Sebo Company 50,000
CI from above 61,000 20,000
Total 291,000 70,000

Dividends Declared
Palo Corporation 20,000
Sebo Company 10,000

Retained Earnings, December 31 271,000 60,000

Statement of Financial Position

Cash 37,000 20,000

Accounts Receivable 50,000 30,000
Inventory 70,000 60,000
Buildings and Equipment 300,000 240,000
Investment in Sebo Company 229,000
Goodwill
Total Assets 686,000 350,000

Accounts Payable 40,000 20,000

Taxes Payable 70,000 55,000
Common Stock
 Pabo Corporation 200,000
Sebo Company 150,000
Retained Earnings, from above 271,000 60,000
581,000 285,000
STATEMENTS
Debit Credit Consolidated

450,000
19,000
450,000

295,000
45,000
48,000
388,000

62,000

230,000
50,000
62,000
292,000

20,000
10,000 0
20,000
272,000

57,000
80,000
130,000
370,000
229,000 0
20,000 20,000
657,000

60,000
125,000
 200,000
150,000
272,000
239,000 239,000 657,000
 Palo Corporation and Subsidiary
Consolidated Income Statement
31-Dec-17
Sales 450,000
Expenses:
Cost of goods sold 295,000
Depreciation expense 45,000
Operating expense 48,000 388,000
Consolidated net income 62,000

Palo Corporation and Subsidiary

Consolidated Retained Earnings
31-Dec-17
Retained earnings, January 1 230,000
Net income forward to retained earnings 62,000
Dividends paid to Palo Corporation 20,000
Retained earnings 272,000

Palo Corporation and Subsidiary

Consolidated Statement of Financial Position
31-Dec-17
Cash 57,000
Accounts receivable 80,000
Inventory 130,000
Buildings and equipment 540,000
Less: Accumulated depreciation 170,000 370,000
Goodwill 20,000
Total assets 657,000

Accounts payable 60,000

Taxes payable 125,000
Common stock 200,000
Retained earnings 272,000
Total liabilities and equity 657,000