Question

A Company purchased 90% of shares of B Company on January 1, 2019. Transactions in between A  and B Company during 2019 are as follows:

There are sales of merchandise inventory between A and B Company. Sales figure of A Company includes the sales to B Company at the amount of $42,000 on cash. The cost of merchandise sold of this transaction were $34,000 for A. Those merchandise inventories has been sold to the third parties for $48,000 by B Company. 

 A Company has account receivable from B Company at the amount of $21,000. 

A Company got service from B Company at the amount of $600. A Company reported this expense on the “Other Expenses” and B Company reported this income on the “Other Income”.

BALANCE SHEETS   (DECEMBER           31,           2019)				ELIMINATIONS	A   COMPANY              CONSOLIDATED   BALANCE              SHEET              (DECEMBER         31,              2019)
	A    COMPANY		B                COMPANY
CURRENT             ASSETS
CASH    and          CASH             EQUIVALANCE	17,400		12,400
ACCOUNTS           RECEIVABLE	66,000		82,200
MERCHANDISE    INVENTORY	58,500		21,000
NON-CURRENT    ASSETS
TANGIBLE            ASSETS	175,200		125,000
(-)ACCUMULATED             DEPRECIATION	(55,400)		(46,600)
SUBSIDIARY	76,000		-
TOTAL   ASSETS	337,700		194,000
LIABILITIES
BANK    LOAN	87,600		90,000
ACCOUNTS           PAYABLE	52,500		18,400
TAX       PAYABLE	1,200		400
SHAREHOLDER’S EQUITIES
CAPITAL	150,000		60,000
RETAINED            EARNINGS	28,200		18,000
NET       INCOME	18,200		7,200
TOTAL   LIABILITIES              AND        SHAREHOLDER’S EQUITIES	337,700		194,000

	JONES COMPANY	TURNER COMPANY	ELIMINATIONS	JONES COMPANY   CONSOLIDATED INCOME STATEMENT (FOR THE YEAR   2019)
SALES      REVENUE	176,000	78,000
COST       of            GOODS    SALES	-148,000	-56,000
GROSS    MARGIN	28,000	22,000
OPERATING            EXPENSES	-8,000	-15,000
INCOME  AFTER     OPERATING                ACTIVIES	20,000	7,000
OTHER    INCOME	-	600
OTHER    EXPENCES	-600	-
INCOME  BEFORE  TAX	19,400	7,600
TAX         EXPENSE	-1,200	-400
NET         INCOME	18,200	7,200

Prepared the consolidated financial statements for A Company after doing necessary eliminations.