The following accounts are as they appear on the separate company financial statements of a parent and its 100%-owned subsidiary at the end of 2009:
Required:
a. What consolidation entries are required at 12/31/09?
b. What is the consolidated net income amount?
c. What is the consolidated retained earnings amount?
d. What amount will be reported for dividends in the consolidated statement of retained earnings for 2009?
e. If the parent used the cost method instead of the equity method, what would be the parent's retained earnings balance at 12/31/09?
f. If the parent used the cost method instead of the equity method, what consolidation entries would be made at 12/31/09?

Question

The following accounts are as they appear on the separate company financial statements of a parent and its 100%-owned subsidiary at the end of 2009:
  Required:
a. What consolidation entries are required at 12/31/09?
b. What is the consolidated net income amount?
c. What is the consolidated retained earnings amount?
d. What amount will be reported for dividends in the consolidated statement of retained earnings for 2009?
e. If the parent used the cost method instead of the equity method, what would be the parent's retained earnings balance at 12/31/09?
f. If the parent used the cost method instead of the equity method, what consolidation entries would be made at 12/31/09?

Quizplus · Accepted Answer

The Answer of The following accounts are as they appear on the separate company financial statements of a parent and its 100%-owned subsidiary at the end of 2009:
  Required:
a. What consolidation entries are required at 12/31/09?
b. What is the consolidated net income amount?
c. What is the consolidated retained earnings amount?
d. What amount will be reported for dividends in the consolidated statement of retained earnings for 2009?
e. If the parent used the cost method instead of the equity method, what would be the parent's retained earnings balance at 12/31/09?
f. If the parent used the cost method instead of the equity method, what consolidation entries would be made at 12/31/09?

The Following Accounts Are as They Appear on the Separate