Starts has a 60% joint operation interest in Fish. Based on the following information, what amount will be presented for current liabilities on Starts' proportionately consolidated balance sheet? $$\begin{array} { | l | r | r | }
\hline & \text { Starts } & \text { Fish } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$550
B)$470
C)$350
D)$200

Question

Starts has a 60% joint operation interest in Fish. Based on the following information, what amount will be presented for current liabilities on Starts' proportionately consolidated balance sheet? $$\begin{array} { | l | r | r | } 
\hline & \text { Starts } & \text { Fish } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$550
B)$470
C)$350
D)$200

Quizplus · Accepted Answer

To calculate the proportionately consolidated balance sheet, we need to add together the amounts from both Starts and Fish, adjusted for their percentage of joint operation interest.

For current liabilities, Starts' proportionate share is 60% of \$200, which is \$120. Adding this to Starts' actual current liabilities of \$350 gives us a total of \$470. Therefore, the correct answer is B.

Starts Has a 60% Joint Operation Interest in Fish A)$550 B)$470 C)$350 D)$200

Starts Has a 60% Joint Operation Interest in Fish A)$550
B)$470
C)$350
D)$200