Complete the consolidation working papers for powl

Question

Soal Kelompok Advanced Accounting 2016

Powl Corporation acquired 90% of the voting stock of Sowl Corporation on January 1, 2014 for $7,000 when Sowl had Capital Stock of $5,000 and Retained Earnings of $1,500. The excess of cost over book value was allocated $150 to inventories that were sold in 2014, $200 to undervalued land, $400 to undervalued equipment with a remaining useful life of 5 years under the straight-line method, and the remainder to goodwill.

Financial statements for Powl and Sowl Corporations at the end of the fiscal year ended December 31, 2015 appear in the first two columns of the partially completed consolidation working papers. Powl has accounted for its investment in Sowl using the equity method of accounting. Powl Corporation owed Sowl Corporation $100 on open account at the end of the year. Dividends receivable in the amount of $450 payable from Sowl to Powl is included in Powl's net receivables.

Required:

Complete the consolidation working papers for Powl Corporation and Subsidiary.

Powl Corporation and Subsidiary
Consolidated Balance Sheet Working Papers
at December 31, 2015
	Powl	Sowl	Elimination		NCI	Consolidated
			Debit	Credit
INCOME STATEMENT
Sales	10,000	6,500
Equity in Income Sowl	1,270
Cost of Sales	(4,000)	(3,300)
Depreciation expense	(1,000)	(1,000)
Other expenses	(1,800)	(700)
Net income	4,470	1,500
NCI share of Income
Net income
RE Statements
Retained Earnings 1/1	2,510	2,000
Net income	4,470	1,500
Dividends	(2,000)	(1,000)
Retained Earnings 12/31	4,980	2,500
SOFP
Cash	1,440	1,900
Receivables-net	1,550	600
Inventories	1,500	1,200
Land	1,000	600
Equipment and
Buildings-net	7,500	5,700
Investment in Sowl	7,590	-
TOTAL ASSETS	20,580	10,000
LIAB. & EQUITY
Accounts payable	3,000	2,000
Dividends payable	1,000	500
Capital Stock	11,600	5,000
Retained Earnings	4,980	2,500
LIAB. & EQUITY	20,580	10,000