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    Accounts Gibson Keller Debit Credit

    Uploaded by

    McKenzie W
    This document summarizes the consolidation entries for Gibson and Keller. Key entries include combining sales of $800,000 and $500,000 respectively, combining COGS and operating expenses, and eliminating the equity investment in Keller of $84,000. The consolidated net income is calculated. Additional entries record the retained earnings of each company and the dividends declared. The consolidated balance sheet combines the asset, liability, and equity accounts of each company.

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    Accounts Gibson Keller Debit Credit

    Uploaded by

    McKenzie W
    33 views4 pages
    This document summarizes the consolidation entries for Gibson and Keller. Key entries include combining sales of $800,000 and $500,000 respectively, combining COGS and operating expenses, and eliminating the equity investment in Keller of $84,000. The consolidated net income is calculated. Additional entries record the retained earnings of each company and the dividends declared. The consolidated balance sheet combines the asset, liability, and equity accounts of each company.

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    accounting

    Original Title

    5-36

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    This document summarizes the consolidation entries for Gibson and Keller. Key entries include combining sales of $800,000 and $500,000 respectively, combining COGS and operating expenses, and eliminating the equity investment in Keller of $84,000. The consolidated net income is calculated. Additional entries record the retained earnings of each company and the dividends declared. The consolidated balance sheet combines the asset, liability, and equity accounts of each company.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    33 views4 pages

    Accounts Gibson Keller Debit Credit

    Uploaded by

    McKenzie W
    This document summarizes the consolidation entries for Gibson and Keller. Key entries include combining sales of $800,000 and $500,000 respectively, combining COGS and operating expenses, and eliminating the equity investment in Keller of $84,000. The consolidated net income is calculated. Additional entries record the retained earnings of each company and the dividends declared. The consolidated balance sheet combines the asset, liability, and equity accounts of each company.

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    © All Rights Reserved
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    Consolidation Entries

    Accounts Gibson Keller Debit Credit


    Sales $ (800,000) $ (500,000) TI $ 200,000
    COGS $ 500,000 $ 300,000 G $ 12,000 TI $ 200,000
    *G $ 10,000
    Operating Expenses $ 100,000 $ 60,000 E $ 5,000
    Equity in Keller $ (84,000) $ - I $ 84,000
    Net Income $ (284,000) $ (140,000)
    Consolidated Net Income
    NI to Noncontrolling Interest
    NI to Controlling Interest

    RE 1/1/21 of Gibson $ (1,116,000) *C $ 9,000


    GL $ 40,000
    RE of Keller 1/1/21 $ (620,000) *G $ 10,000
    S $ 610,000
    Net Income $ (284,000) $ (140,000)
    Dividends Declared $ 115,000 $ 60,000 D $ 36,000
    RE 12/31/21 $ (1,285,000) $ (700,000)

    Cash $ 177,000 $ 90,000


    Accounts Receivable $ 356,000 $ 410,000 P $ 40,000
    Inventory $ 440,000 $ 320,000 G $ 12,000
    Investment in Keller $ 726,000 $ - D $ 36,000 S $ 612,000
    A $ 57,000
    I $ 84,000
    *C $ 9,000

    Land $ 180,000 $ 390,000 GL $ 40,000


    Buildings and Equipment (net) $ 496,000 $ 300,000
    Customer List $ - $ - A $ 95,000 E $ 5,000
    Total Assets $ 2,375,000 $ 1,510,000

    Liabilities $ (480,000) $ (400,000) P $ 40,000


    Common Stocks $ (610,000) $ (320,000) S $ 320,000
    Additional Paid-in Capital $ - $ (90,000) S $ 90,000
    RE 12/31/21 $ (1,285,000) $ (700,000)
    NCI 1/1/21 S $ 408,000
    A $ 38,000
    NCI 12/31/21
    Total Liabilities and Equity $ (1,275,000) $ (1,510,000) $ 1,551,000 $ 1,551,000
    NCI Consolidated Totals
    $ (1,100,000) Sales 2021 $ 200,000
    $ 602,000 * GP% 2021 30%
    * % still owned at yr end 20%
    $ 165,000 = Entry G $ 12,000
    $ -
    Sales 2020 $ 150,000
    $ (333,000) * GP % 2020 33%
    $ (53,200) $ 53,200 * % still owned yr end 20%
    $ (279,800) = Entry *G $ 10,000

    $ (1,067,000) Beginning RE sub 2021 $ 620,000


    Less: Unrealized GP 2021 $ (10,000)
    $ - = Entry S Dr to sub RE $ 610,000

    $ (279,800) Sell price land $ 100,000


    $ 24,000 $ 115,000 Less: BV of land $ (60,000)
    $ (1,231,800) = Gain on land $ 40,000

    $ 267,000 Sub NI $140,000


    $ 726,000 Less: Amortization $ (5,000)
    $ 748,000 Less: Unrealized GP 2020 $ (12,000)
    $ - + Unrealized GP 2021 $ 10,000
    = Adjusted NI $133,000
    * NCI % 40%
    = NCI in sub NI $ 53,200

    $ 530,000
    $ 796,000
    $ 90,000
    $ 3,157,000

    $ (840,000)
    $ (610,000)
    $ -
    $ (1,231,800)

    $ (446,000)
    $ (475,200) $ (475,200)
    $ (3,157,000)
    Cost of Building $ 140,000
    Less: Sale price $ (100,000)
    = Loss $ 40,000 TA RE of Keller 1/1/2020
    Buildings
    Sell price land $ 100,000 Accumulated Depreciation
    / years 10
    = $ 10,000 ED Accumulated Depreciation
    Depreciation Expense
    Book value $ 60,000
    / years 10
    = $ 6,000

    Sell price depreciation rate $ 10,000


    Less: BV depreciation rate $ (6,000)
    = Excess Depreciation $ 4,000

    Historical Cost $ 100,000


    Less: BV $ (60,000)
    = DR to entry TA $ 40,000

    Historical Cost $ 100,000


    Less: BV $ (60,000)
    = Accumulated Depreciation $ 40,000
    Less: Excess Depreciation $ (4,000)
    = DR to RE entry TA $ 36,000
    There will be no entry GL, instead there will be an entry TA for assets.
    There will be an entry ED for depreciation.

    $ 36,000
    $ 40,000
    $ 76,000

    $ 4,000
    $ 4,000

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