The following accounts are as they appear on the separate company financial statements of a parent and its 100%-owned subsidiary (created in 2001) at 12/31/06:
Required:
a. What consolidation entries are required at 12/31/06?
b. What is the consolidated retained earnings amount?
c. What amount will be reported for dividends in the consolidated statement of retained earnings for 2006?

Question

The following accounts are as they appear on the separate company financial statements of a parent and its 100%-owned subsidiary (created in 2001) at 12/31/06:
  Required:
a. What consolidation entries are required at 12/31/06?
b. What is the consolidated retained earnings amount?
c. What amount will be reported for dividends in the consolidated statement of retained earnings for 2006?

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 (created in 2001) at 12/31/06:
  Required:
a. What consolidation entries are required at 12/31/06?
b. What is the consolidated retained earnings amount?
c. What amount will be reported for dividends in the consolidated statement of retained earnings for 2006?

The Following Accounts Are as They Appear on the Separate