Problem

Consolidated Balance Sheet WorksheetThe December 31, 20X8, balance sheets for Doorst Corpo...

Consolidated Balance Sheet Worksheet

The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent owned subsidiary Hingle Company contained the following summarized amounts:

DOORST CORPORATION AND HINGLE COMPANY

Balance Sheets

December 31, 20X8

 

Doorst Corporation

Hingle Company

Cash and Receivables

$ 98,000

$ 40,000

Inventory

150,000

100,000

Buildings and Equipment (net)

310,000

280,000

Investment in Hingle Company Stock

242,000

 

Total Assets

$800,000

$420,000

Accounts Payable

$ 70,000

$ 20,000

Common Stock

200,000

150,000

Retained Earnings

530,000

250,000

Total Liabilities and Equity

$800,000

$420,000

Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume Doorst sold inventory to Hingle during 20X8 for $100,000 and Hingle sold inventory to Doorst for $300,000. Doorst’s balance sheet contains inventory items purchased from Hingle for $95,000. The items cost Hingle $55,000 to produce. In addition, Hingle’s inventory contains goods it purchased from Doorst for $25,000 that Doorst had produced for $15,000. Assume Hingle reported net income of $70,000 and dividends of $14,000.

Required

a. Prepare all eliminating entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8.


b. Prepare a consolidated balance sheet worksheet as of December 31, 20X8.

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