Please let me know the correct fill ins. I am a little confused Parrot Corporati
ID: 2571202 • Letter: P
Question
Please let me know the correct fill ins. I am a little confused
Parrot Corporation acquired 70% of Hollow Co. on January 1, 2017 for $35,000 cash when Hollon stockholders' equity consisted of $12,000 of Common Stock and $3,000 of Retained Earnings. The difference between the price paid by Parrot and the underlying equity acquired in Hollow was allocated solely to a patent amortized over 10 years. The separate company statements for Parrot and Hollow appear in the first two columns of the partially completed consolidation working papers Complete the consolidation working papers for Parrot and Hollow for the year 2017 Eliminations Parrot Hollow Debit Credit Consolidated COME STATEMENT 1,960 ost of Sales Other Expenses Noncontrolling Int exp Retained Add 4,700 4,000) 2,300) 13100 6,300 10,460 Dixidend Retained 18,wo 5 18,460 3,900 ash ccounts 2,000 0005,500 4.000 27,000 60,000 35,560 and quipment and Investment in ollow Co LIAB.&EQUITY; 83,100 Accounts payable apita Retained 1/1 Noncontrol 41,000 18,460 7,300 Interest 12/31 Noncontrol nterest TOTAL LIAB. & EQUITY150,360 $102,400Explanation / Answer
Eliminations Income Statement Parrot Hollow Debit Credit Consolidated Sales 20000 15000 35000 35000 Income of Hollow 1960 1960 1960 Cost of sales -9200 -4700 -13900 -13900 Other expenses -2300 -4000 -6300 -6300 Non Controlling Interest expenses (Net Income) 10460 6300 16760 16760 Retained Earning 11000 3000 14000 -3000 11000 Add: Net Income 10460 6300 16760 -1890 14870 Less: Dividend -3000 -2000 -5000 600 -4400 Retained Earning 18460 7300 25760 21470 Balance Sheet Cash 2000 3900 5900 5900 Acounts Receivables 11800 5500 17300 17300 Inventories 14000 8000 22000 22000 Patent 25060 Land 27000 42000 69000 69000 equipment and Building, net 60000 43000 103000 103000 Investment in Hollow Co. 35560 35560 -35560 0 Total Assets 150360 102400 252760 242260 Liabilities and Equity Accounts Payable 90900 83100 174000 174000 Capital Stock 41000 12000 53000 -12000 41000 Retained Earnings 18460 7300 25760 -4290 21470 Non control Interest 5790 5790 Total Liabilities and Equity 150360 102400 252760 242260 0 Consideration Paid 35560 Fair Value ~70%of Shareholders Fund 10500 Patent 25060 Non control Interest Share Capital 3600 30% share in Earnings 2190 Total Non Controlling Interest 5790