90.2K

Verified Solution

Link Copied!

accounting

I hope this is clear. answers please

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Davis (381,000) 204,000 69,000 $ $ $ $ $ Gibson (768,000) 380,000 182,000 (24,000) (230,000) (761,000) (230,000) 50,000 (941,000) 245,400 582,000 552, 600 598,000 443,000 2,421,000 (850,000) (630,000) (941,000) Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity $ $ (108,000) (451,000) (108,000) 40,000 (519,000) 72,000 220,000 0 640,000 495,000 1,427,000 (568,000 (340,000) (519,000) $ $ $ $ (2,421,000) $ (1,427,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $368,400. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson $ (768,000) 380,000 182,000 (24,000) $ (230,000) $ (761,000) (230,000) 50,000 $ (941, 000) $ 245,400 582,000 552,600 598,000 443,000 $ 2,421,ope (850,000) (630,000) (941,000 Davis $ (381,000) 204,000 69,000 0 $ (108,000) $ (451,000) (108,000) 40,000 $ (519,000) $ 72,000 220,000 0 640,000 495,000 $ 1,427,000 $ (568,000) (340,000) (519,000) $ (1,427,000) $ (2,421,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $368.400. Davis earned income evenly during the year but declared the $40.000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: $ $ $ $ Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson $ (768,000) 380,000 182,000 (24,000) $ (230,000) $ (761,000) (230,000) 50,000 $ (941,000) $ 245,400 582,000 552,600 598,000 443,000 $ 2,421,000 (850,000) (630,000) (941, 000) $ (2,421,000) Davis (381,000) 204,000 69,000 0 (108,000) (451,000) (108,000) 40,000 (519,000) 72,000 220,000 0 640,000 495,000 1,427,000 (568,000) (340,000) (519,000 $ $ $ $ (1,427,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $368,400 Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 20214 b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 $ 0 Required A Required B Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared

Answer & Explanation Solved by verified expert

See Answer