Note: Parentheses Indicate a credit balance Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equlty method based on separate company incomes has been applied to each Investment (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling interest and Consolidated Totals columns should be entered with a minus sign.) 818.000 HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated House Wilson Cuddy Accounts Debit Credit Interest Balance Corporation Company Company Sales and other revenue (1.040,384 (802.780 (315,300 200.000 (1949.464 605.000 Cost of goods sold 308,000 144.000 18.310 13.000 1.082.810 Operating expenses 307.000 273.500 99.500 Income of Wilson Company (154896 Income of Cuddy Company 28.720 28.720) Net income 312000 (250.000) (71.300) (386.654 Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation 888.654 Retained earnings. 1/1/18 House Corporation 910.000) Wison Company Cuddy Company (193.000 Net income 12.000 250,000 (71.800 Dividends declared House Corporation 100.000 Wilson Company 90.000 Cuddy Company 50.000 Retained earnings, 12/31/18 (1.131.000 (772.000 214 800) Cash and receivables 74,834 220.080 75.000 Inventory 304250 530,000 156.100 Investment in Wilson Company 910 190 Investment in Cuddy Company 145.920 145.920 Buildings 480.000 335.000 200.000 Equipment 482,000 162.000 95.500 Land 185.000 300,000 17200 Goodwil Franchise contracts Total assets 2.601.000 1.702.000 543.800 (730.000 (820,000) (179.000 Noncontrolling interest in Cuddy Noncontrolling interest in Wison Noncontrolling interest in subsidiary companies Common stock (820.000 (310,000) (150,000) Retained earnings (above) 11.131.000 (772.000 (214,800) Totalities and equities 2.681.000) (1,762000) (543.800 13.000 House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following falr-value allocation schedule: Consideration transferred for 70% interest in Wilson Fair value of the se noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 742, 318.000 $1, ese, 813,000 $ 247,00 $ 97,00 (23,800) 73,000 146,200 100,00 House regularly buys inventory from Wilson at a markup of 25 percent more than cost House's purchases during 2016 and 2017 and related ending Inventory balances follow Intra-Entity Remaining Intra-Entity Inventory Purchases End of Year (at transfer price) $135, cee $45,000 162,500 65,000 Year 2016 2017 On January 1, 2018, House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's outstanding common stock The total price of these shares was $274,400, indicating neither goodwill nor other specific fair value allocations. Each company put up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at a price of $209,000 or this merchandise, 45 percent is still held at year-end. $ wilson Company (882,788) 308, 273,50 $ Cuddy Company (315,300) 244,00 99, see $ 5 $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earnings, 1/1/18 Net Incone (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities House Corporation S (1,840, 384) 605,000 307, eee (154,896) (28,720) (312, eee) $ (919, (312,000) 100,000 5 (1,131,000) 5 74,636 394,250 910, 196 145,92e 489, eee 482,00 185, $ 2,681,000 5 (730,000) (820, ese) (1,131,00e) $ (2,681,00) (71,00 (193,000) (71,300) 50. (214,860) 75,00 156, 100 5 5 (28,720) $ (250,000) $ (618,000) (250,000) 95,000 $ (772,000) $ 220,00 530,000 e 145,920 335,000 162.000 300,000 $ 1,702,000 $ (620,000) (310,000) (772,200) $ (1,702,000) $ 200,00 95. See 17,200 543,500 (179,0) (15e.com) (214, Bee) (543,500) $ Prey Note: Parentheses Indicate a credit balance Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equlty method based on separate company Incomes has been applied to each Investment. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling interest and Consolidated Totals columns should be entered with a minus sign.) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated House Wilson Cuddy Accounts Debit Credit Company Interest Corporation Company Balance Sales and other revenue (1.040,384 802.780 (315,300 200.000 (1949.464 Cost of goods sold 605.000 308,000 144.000 18.810 13.000! 1.082.810 Operating expenses 307.000 273.500 99.500 Income of Wilson Company (154896 Income of Cuddy Company (28.720 28.720) Net income 312000 (250,000) (71.800) Consolidated net income 388.654 Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation 388.654 Retained earnings. 1/1/18 House Corporation (910,000) Wilson Company 818.000 Cuddy Company (193.000 Net income 12.000 250,000 (71.800 Dividends declared House Corporation 100.000 Wilson Company 90.000 Cuddy Company 30.000 Retained earnings, 12/31/18 (1.131.000 (772.000 214.300) Cash and receivables 74834 220.080 75.000 Inventory 304250 530,000 156.100 Investment in Wilson Company 910.190 Investment in Cuddy Company 145.920 145.920 Buildings 480.000 335.000 200.000 Equipment 482.000 162.000 95.500 Land 185.000 300.000 17200 Goodwil Franchise contracts Total assets 2.601.000 1.702,000 543.000 Liabilities (730,000) (820,000) (179,000 Non controling interest in Cuddy Noncontrolling interest in Wison Noncontrolling interest in subsidiary companies Common stock (820.000 (310.000) (150,000 Retained earnings (above) 11.131.000 (772.000 (214,800) Total abities and equities 2.681.000 (1.762.000 (543.800 13.000 Note: Parentheses Indicate a credit balance Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equlty method based on separate company Incomes has been applied to each Investment. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling interest and Consolidated Totals columns should be entered with a minus sign.) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated House Wilson Cuddy Accounts Debit Credit Company Interest Corporation Company Balance Sales and other revenue (1.040,384 802.780 (315,300 200.000 (1949.464 Cost of goods sold 605.000 308,000 144.000 18.810 13.000! 1.082.810 Operating expenses 307.000 273.500 99.500 Income of Wilson Company (154896 Income of Cuddy Company (28.720 28.720) Net income 312000 (250,000) (71.800) Consolidated net income 388.654 Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation 388.654 Retained earnings. 1/1/18 House Corporation (910,000) Wilson Company 818.000 Cuddy Company (193.000 Net income 12.000 250,000 (71.800 Dividends declared House Corporation 100.000 Wilson Company 90.000 Cuddy Company 30.000 Retained earnings, 12/31/18 (1.131.000 (772.000 214.300) Cash and receivables 74834 220.080 75.000 Inventory 304250 530,000 156.100 Investment in Wilson Company 910.190 Investment in Cuddy Company 145.920 145.920 Buildings 480.000 335.000 200.000 Equipment 482.000 162.000 95.500 Land 185.000 300.000 17200 Goodwil Franchise contracts Total assets 2.601.000 1.702,000 543.000 Liabilities (730,000) (820,000) (179,000 Non controling interest in Cuddy Noncontrolling interest in Wison Noncontrolling interest in subsidiary companies Common stock (820.000 (310.000) (150,000 Retained earnings (above) 11.131.000 (772.000 (214,800) Total abities and equities 2.681.000 (1.762.000 (543.800 13.000 House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule: Consideration transferred for 7ex interest in Wilson Fair value of the 30% noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (18-year remaining life) To goodwill indefinite life) $ 742,000 318,000 $ 1,060,000 813,000 $ 247,000 $ 97,000 (23,800) 73,000 $ 146,200 109,800 House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2016 and 2017 and related ending inventory balances follow. Year 2016 2017 Intra-Entity Purchases $135,000 162,500 Remaining Intra-Entity Inventory End of Year (at transfer price) $45,000 65,000 On January 1, 2018, House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's outstanding common stock. The total price of these shares was $274,400, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2018. House acquired additional inventory from Wilson at a price of $209,000. Of this merchandise. 45 percent is still held at year-end Sales and other revenues House Corporation Wilson Company Cuddy @ On January 1, 2018, House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's outstanding common stock. The total price of these shares was $274,400, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at a price of $209,000. Of this merchandise, 45 percent is still held at year-end. House Wilson Cuddy Corporation Company Company Sales and other revenues $ (1,040,384) $ (802,780) $ (315,300) Cost of goods sold 605,000 308,000 144,000 Operating expenses 307,000 273,500 99,500 Income of Wilson Company (154,896) @ Income of Cuddy Company (28,720 (28,720) Net income $ (312,000) $ (250,000) $ (71,800) Retained earnings, 1/1/18 $ (919,000) (618,000) $ (193,000) Net Income (above) (312,000) (250,000) (71,800) Dividends declared 100,000 96,000 50, eee Retained earnings, 12/31/18 $ (1,131,000) $ (772,000) (214,800) Cash and receivables $ 74,634 220,080 $ 75,000 Inventory 394,250 530,000 156,100 Investment in Wilson Company 910, 196 @ Investment in Cuddy Company 145,920 145,920 Buildings 489,000 335,000 200,000 Equipment 482,000 162,000 95,500 Land 185,000 309, eee 17,200 Total assets $ 2,681,000 $ 1,702,000 $ 543,800 Liabilities $ (730,000) $ (620,000) (179,000) Common stock (820,000) (310,000) (15e,ece) Retained earnings, 12/31/18 (1,131,000) (772,000) (214,800) Total liabilities and equities $ (2,681,000) $(1,702,000) $ (543,800) $ $ $ @ $ Note: Parentheses indicate a credit balance. Noncontrolling Consolidated Interest Balance (1.049,404 1,062,810 (886,654) (888,654) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries House Wilson Cuddy Debit Accounts Corporation Company Company (1.040,384) (802.780) (315,300) Sales and other revenue 209.000 308,000 605,000 144,000 18,810 13,000 Cost of goods sold 307,000 273,500 Operating expenses 99,500 Income of Wison Company (154,898) Income of Cuddy Company (28.720) (28.720) Net income (312,000) (250.000) (71.800) Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation Retained earnings, 1/1/18 House Corporation (919,000) Wison Company (618.000) Cuddy Company (193.000) Net income (312.000) (250,000) (71.800) Dividends declared House Corporation 100,000 Wilson Company 90.000 Cuddy Company -50.000 Retained earnings 12/31/18 (1.131,000) (772.000) (214,800) Cash and receivables 74634 220.080 75.000 Inventory 304,250 530,000 158.100 Investment in Wilson Company 910.198 Investment in Cuddy Company 145.920 145,920 Buildings 489.000 335.000 200.000 Equipment 482.000 162.000 95,500 Land 185.000 300.000 17.200 Goodwill Franchise contracts Total assets 2.681.000 1,702,000 543.800 Liabilities (730,000) (620.000) Noncontrolling interest in Cuddy (179.000 Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock (820.000 Retained earnings (above) (310.000) (150,000) (1.131.000) Total abilities and equities (772.000) (214 800) (2.681.000) (1.702.000) (543.800) 13,000 0 227.810