Belchfire Motors accountant was called away after completing only half of the consolidated statements at...
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Accounting
Belchfire Motors accountant was called away after completing only half of the consolidated statements at the end of 20X4. The data left behind included the following:
| Item | Belchfire Motors | Premium Body Shop | Consolidated | ||||||
| Cash | $ | 40,000 | $ | 20,000 | $ | 60,000 | |||
| Accounts Receivable | 180,000 | 30,000 | 200,000 | ||||||
| Inventory | 220,000 | 50,000 | 270,000 | ||||||
| Buildings and Equipment (net) | 300,000 | 290,000 | 590,000 | ||||||
| Investment in Premium Body Shop | 150,000 | ||||||||
| Total Debits | $ | 890,000 | $ | 390,000 | $ | 1,120,000 | |||
| Accounts Payable | $ | 30,000 | $ | 40,000 | |||||
| Bonds Payable | 400,000 | 200,000 | |||||||
| Common Stock | 200,000 | 100,000 | |||||||
| Retained Earnings | 260,000 | 50,000 | |||||||
| Total Credits | $ | 890,000 | $ | 390,000 | |||||
| Required: | |
| a. | Belchfire Motors acquired shares of Premium Body Shop at underlying book value on January 1, 20X1. What portion of the ownership of Premium Body Shop does Belchfire apparently hold? |
| b. | Compute the consolidated totals for each of the remaining balance sheet items. |
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