On December 31, 20X8, Pancake Company acquired controlling ownership of Syrup Company. A consolidated balance sheet...
On December 31, 20X8, Pancake Company acquired controlling ownership of Syrup Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
|
Pancake |
Syrup |
Consolidated |
||||||||||||||||
|
Company |
Company |
Entity |
||||||||||||||||
|
Cash |
$ |
80,000 |
$ |
30,000 |
$ |
110,000 |
||||||||||||
|
Accounts Receivable |
50,000 |
? |
78,000 |
|||||||||||||||
|
Inventory |
60,000 |
50,000 |
115,000 |
|||||||||||||||
|
Buildings and Equipment |
200,000 |
140,000 |
365,000 |
|||||||||||||||
|
Less: Accumulated Depreciation |
(50,000 |
) |
(28,000 |
) |
(78,000 |
) |
||||||||||||
|
Investment in Syrup Stock |
? |
|||||||||||||||||
|
Goodwill |
15,000 |
|||||||||||||||||
|
Total Assets |
$ |
464,000 |
$ |
230,000 |
$ |
605,000 |
||||||||||||
|
Accounts Payable |
$ |
60,000 |
$ |
32,000 |
$ |
82,000 |
||||||||||||
|
Wages Payable |
? |
? |
78,000 |
|||||||||||||||
|
Notes Payable |
100,000 |
60,000 |
160,000 |
|||||||||||||||
|
Common Stock |
100,000 |
50,000 |
? |
|||||||||||||||
|
Retained Earnings |
154,000 |
60,000 |
? |
|||||||||||||||
|
Noncontrolling Interest |
31,000 |
|||||||||||||||||
|
Total Liabilities and Equities |
? |
$ |
230,000 |
$ |
605,000 |
|||||||||||||
During 20X8, Pancake Company provided consulting services to Syrup Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.
Based on the information given, what amount will be reported as total controlling interest in the consolidated balance sheet?
A) $254,000
B) $285,000
C) $364,000
D) $395,000
Answer: A
Please explain how to calculate $254,000. Thank you
Homework Answers
The total contolling interest amount in the consolidated balance sheet include shareholders equity and retained earnings.
Therefore,
Controlling interest = Equity + retained earnings
= $ 100,000 + $ 154,000
= $ 254,000
Add Answer to:
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