Consolidation Worksheet after Translation
Refer to the information given in Problems P12-23 and P12-24 for Alamo and its subsidiary, Western Ranching. Assume that the Australian dollar (A$) is the functional currency and that Alamo uses the basic equity method for accounting for its investment in Western Ranching. A December 31, 20X3, trial balance for Alamo Inc. follows. Use this translated trial balance for completing this problem.
Item | Debit | Credit |
Cash | $ 38,000 |
|
Accounts Receivable (net) | 140,000 |
|
Receivable from Western Ranching | 6,480 |
|
Inventory | 128,000 |
|
Plant and Equipment | 500,000 |
|
Investment in Western Ranching | 152,064 |
|
Cost of Goods Sold | 600,000 |
|
Depreciation Expense | 28,000 |
|
Operating Expenses | 204,000 |
|
Interest Expense | 2,000 |
|
Dividends Declared | 50,000 |
|
Translation Adjustment | 22,528 |
|
Accumulated Depreciation |
| $ 90,000 |
Accounts Payable |
| 60,000 |
Interest Payable |
| 2,000 |
Common Stock |
| 500,000 |
Retained Earnings, January 1, 20×3 |
| 179,656 |
Sales |
| 1,000,000 |
Income from Subsidiary |
| 39,416 |
Total | $1,871,072 | $1,871,072 |
Required
a.Prepare a set of eliminating entries, in general journal form, for the entries required to prepare a comprehensive consolidation worksheet (including other comprehensive income) as of December 31, 20X3.
b.Prepare a comprehensive consolidation worksheet as of December 31, 20X3.
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