CR Consolidated • 0 •r Corp. rani e Co. Elimination Entries DR Income Statement Sales Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Granite Co. 700,000 -500,000 -25,000 -75,000 45,000 400,000 -250,000 -15,000 -75,000 Consolidated Net Income 145,000 60,000 NCI in Net Income Controlling Interest in Net Income 145,000 60,000 Statement of Retained Earnings Beginning Balance 290,000 100,000 Net Income 145,000 60,000 Less: Dividends Declared -50,000 -20,000 Ending Balance 385,000 140,000 163,750 Balance Sheet Cash 38,000 25,000 Accounts Receivable 50,000 55,000 Inventory 240,000 100,000 Land 80,000 20,000 Buildings & Equipment 500,000 150,000 Less: Accumulated Depreciation -155,000 -75,000 Investment in Granite Co. 202,000 Goodwill 25,000 Total Assets 955,000 275,000 126,250 Accounts Payable 70,000 35,000 Mortgage Payable 200,000 50,000 Common Stock 300,000 50,000 Retained Earnings 385,000 140,000 NCI in NA of Granite Co. Total Liabilities & Equity 955,000 275,000 229,750 1,100,000 1_1 23,750 385,000 63,000 25,000 281,750 1,074,500 74,250 1,074,500 1) c. Prepare a three-part consolidation worksheet s of December 31, 20×7:
!Accounts payable Accounts receivable 16,000 16,000 (1-3 Basic elimination entry Debit Credit Common stock 50000 Retained earnings 100000 Income from Granite Co. NCI in NI of Granite Co. Dividends declared 20000 Investment in Granite Co. NCI in NA of Granite Co. Excess Value (Differential) Calculations: NCI 20% + 13,250 Mortar Corp. 80% Bldgs & Equip Acc. Depr. 41,250 0 Goodwill Beginning balance Changes Ending balance 53,000 25,000 Amortized excess value reclassification entry: Debit Credit Depreciation expense Income from Granite Co. NCI in NI of Granite Co. Excess value (differential) reclassification entry: Buildings & Equipment Goodwill Acc. Depr. Investment in Granite Co. NCI in NA of Granite Co. 41,250 25,000 Eliminate intercompany accounts:
Debit Credit !Investment in Granite Co. Cash 173000 PG INSTRUCTION: You are…