Prepare the distribution and distribution of excess

Question

Advanced Accounting, Comprehensive problem

1) Prepare the Distribution and Distribution of Excess schedule

2) Make all of the entries pertaining to eliminating the Investment in Sub's Common Stock

3) Make all of the entries pertaining to intercompany sales and inventories

4) Make all of the entries pertaining to intercompany accounts receivable and accounts payable

5) Make all of the entries pertaining to intercompany bonds and interest

6) Make all of the entries pertaining to intercompany sales of equipment

7) Make all of the entries pertaining to intercompany leases

8) Make all of the entries pertaining to intercompany Preferred Stock

9) From your worksheet, AFTER you have done all of the eliminations, prepare an income statement right here and show all calculations (example - if you have three Depreciation Expenses from your worksheet, then it would look like this, "Depreciation Expense $103,300" then out beside the total of $103,300 you would show me where that total came from (52,000 + 29,000 + 22,000)

Sales
COGS
Gross Profit
Operating Expenses
Depreciation Expense
Interest Expense
Other Expenses
Interest Income
Other Income
Net Income

10) Now show me your DETAILED calculations as to how the Consolidated Net Income will be allocated between NCI and the Controlling Interest. Feel free to write any comments and explanations regarding your calculations but clear so I know what you are doing and your thought process.

11) Complete the columns for NCI, Controlling Retained Earnings and the Consolidated Balance Sheet which will include Total NCI, make sure Assets = Liabilities + Equity

			Balance Sheet		Eliminations and Adjustments		Consol		Control	Consolidated BS
	Parent BS		Sub BS				Income	NCI	Ret
	Dr	Cr	Dr	Cr	Dr	Cr	State		Earnings	Dr	Cr
Cash	93,443		146,615
Accounts Rec	95,000		175,000
Inventory	80,000		60,000
Dividends Receivable, Sub's P/S	6,000
Invest in Sub C/S	520,008
Investment in Sub P/S	102,000
Investment in P's Debt			50,000
Land	140,000		200,000
Buildings	200,000		250,000
A/D - Building	-80,000		-80,000
Equipment	125,000		190,000
A/D-Equip	-37,500		-57,000
Equipment under Capital Lease			204,110
A/D - Equipment under Lease			-81,644
Minimum Lease Receivable	120,000
Goodwill
Total Assets	1,363,951		1,057,081
Accounts Payable		160,000		100,000
Interest Payable				12,168
Dividens Payable - Preferred Stock				6,000
Unearned Interest Income		6,429
Other Current Liabilities		20,000		10,000
Obligations under Capital Lease				101,403
Notes Payable		200,000		140,000
Bonds Payable		100,000
Premium on Bonds Payable		5,420
Total Liabilities		491,849		369,571
C/S - Parent		200,000
Add PIC-Par		100,000
R/E - Parent		500,000
Preferred Stock - Sub				100,000
C/S - Sub				100,000
Add PIC - Sub				200,000
R/E - Sub				300,000
NCI
Controlling R/E
Total L & E
Sales		602,000		528,400
COGS	355,000		310,000
Operating Exp	110,000		115,000
Depreciation Expense - Building	8,000		10,000
Depreciation Expense - Equipment	12,500		19,000
Dep Expense - Equip under Lease			40,822
Interest Expense on Bonds Payable	10,574
Interest Expense - Lease			12,168
Interest Expense - Notes Payable	12,000		8,400
Interest Income - Lease		12,168
Interest Income - P's Bonds				5,500
Dividend Income - Sub's P/S		6,000
Sub Net Income		10,008
Consol Net Income
C/S Dividends	50,000		25,000
P/S Dividends			6,000
To NCI
Balance to Controlling Interest
Total NCI
Retained Earnings, Control Int