Following are financial statements for Moore Company and Kirby Company for 2018: Kirby (600, eee 400, 000 160, eee Moore (800, e0e) 500, 000 Sales Cost of goods sold Operating and interest expenses...


Following are financial statements for Moore Company and Kirby Company for 2018:<br>Kirby<br>(600, eee<br>400, 000<br>160, eee<br>Moore<br>(800, e0e)<br>500, 000<br>Sales<br>Cost of goods sold<br>Operating and interest expenses<br>100, eee<br>Net income<br>(200, e00)<br>(4@, еее)<br>Retained earnings, 1/1/18<br>Net income<br>(990,000)<br>(200,000)<br>130, 000<br>(550,000)<br>(40, e00)<br>Dividends declared<br>Retained earnings, 12/31/18<br>$ (1,060, eee)<br>(590, e00)<br>Cash and receivables<br>217,000<br>224, 000<br>657,000<br>бее, еее<br>1,000, e00<br>(100,000)<br>200, 000<br>180, eee<br>Inventory<br>Investment in Kirby<br>Equipment (net)<br>Buildings<br>Accumulated depreciation-buildings<br>160, 000<br>420, eee<br>65e, e00<br>(200,000)<br>100, 000<br>Other assets<br>$ 2,798,000<br>$ (1,138,00e)<br>(600, e00)<br>(1,860, 000)<br>$ (2,798, 00e)<br>Total assets<br>$ 1,310,000<br>Liabilities<br>(570,eee)<br>Common stock<br>(150, e00)<br>(590, 000)<br>$ (1,310, 000)<br>Retained earnings, 12/31/18<br>Total liabilities and equity<br>• Moore purchased 90 percent of Kirby on January 1, 2017, for $657,000 In cash. On that date, the 10 percent noncontrolling Interest<br>was assessed to have a $73,000 falr value. Also at the acquisition date, Kirby held equipment (four-year remalning life) undervalued<br>In its financlal records by $20,000 and Interest-bearing liabilitles (five-year remalning life) overvalued by $40,000. The rest of the<br>excess falr over book value was assigned to previously unrecognized brand names and amortized over a 10-year life.<br>During 2017 KIrby reported a net Income of $80,000 and declared no dividends.<br>• Each year Kirby sells Moore Inventory at a 20 percent gross profit rate. Intra-entity sales were $145,000 in 2017 and $160,000 in<br>2018. On January 1, 2018, 30 percent of the 2017 transfers were still on hand, and on December 31, 2018, 40 percent of the 2018<br>transfers remalned.<br>• Moore sold Kirby a bullding on January 2, 2017. It had cost Moore $100,000 but had $90,000 in accumulated depreciation at the<br>time of this transfer. The price was $25,000 In cash. At that time, the bullding had a five-year remalning life.<br>Determine all consolidated balances computationally.<br>Consolidated<br>Balances<br>Sales<br>Cost of goods sold<br>Operating and interest expenses<br>Noncontrolling interest in consolidated net income<br>Consolidated net income<br>Consolidated net income to controlling interest<br>Retained earnings, 1/1/18<br>Dividends deolared<br>Retained earnings, 12/31/18<br>Cash and receivables<br>Inventory<br>Investment in Kirby<br>Equipment (net)<br>Buildings<br>Accumulated depreciation<br>Other assets<br>Brand names<br>Total assets<br>Liabilities<br>NCI<br>Common stock<br>Retained earnings 12/31/18<br>Total liabilities and equity<br>

Extracted text: Following are financial statements for Moore Company and Kirby Company for 2018: Kirby (600, eee 400, 000 160, eee Moore (800, e0e) 500, 000 Sales Cost of goods sold Operating and interest expenses 100, eee Net income (200, e00) (4@, еее) Retained earnings, 1/1/18 Net income (990,000) (200,000) 130, 000 (550,000) (40, e00) Dividends declared Retained earnings, 12/31/18 $ (1,060, eee) (590, e00) Cash and receivables 217,000 224, 000 657,000 бее, еее 1,000, e00 (100,000) 200, 000 180, eee Inventory Investment in Kirby Equipment (net) Buildings Accumulated depreciation-buildings 160, 000 420, eee 65e, e00 (200,000) 100, 000 Other assets $ 2,798,000 $ (1,138,00e) (600, e00) (1,860, 000) $ (2,798, 00e) Total assets $ 1,310,000 Liabilities (570,eee) Common stock (150, e00) (590, 000) $ (1,310, 000) Retained earnings, 12/31/18 Total liabilities and equity • Moore purchased 90 percent of Kirby on January 1, 2017, for $657,000 In cash. On that date, the 10 percent noncontrolling Interest was assessed to have a $73,000 falr value. Also at the acquisition date, Kirby held equipment (four-year remalning life) undervalued In its financlal records by $20,000 and Interest-bearing liabilitles (five-year remalning life) overvalued by $40,000. The rest of the excess falr over book value was assigned to previously unrecognized brand names and amortized over a 10-year life. During 2017 KIrby reported a net Income of $80,000 and declared no dividends. • Each year Kirby sells Moore Inventory at a 20 percent gross profit rate. Intra-entity sales were $145,000 in 2017 and $160,000 in 2018. On January 1, 2018, 30 percent of the 2017 transfers were still on hand, and on December 31, 2018, 40 percent of the 2018 transfers remalned. • Moore sold Kirby a bullding on January 2, 2017. It had cost Moore $100,000 but had $90,000 in accumulated depreciation at the time of this transfer. The price was $25,000 In cash. At that time, the bullding had a five-year remalning life. Determine all consolidated balances computationally. Consolidated Balances Sales Cost of goods sold Operating and interest expenses Noncontrolling interest in consolidated net income Consolidated net income Consolidated net income to controlling interest Retained earnings, 1/1/18 Dividends deolared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Kirby Equipment (net) Buildings Accumulated depreciation Other assets Brand names Total assets Liabilities NCI Common stock Retained earnings 12/31/18 Total liabilities and equity
Jun 09, 2022
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