CONSOLIDATION WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2011
75% Adjustments & Eliminations
PAD SUM Debits Credits Consolidated INCOME STATEMENT Sales 1,260,000 1,000,000 Gain on plant 20,000 0 Gain on building 40,000 0 Income from Sum 92,000 0
Cost of sales (700,000) (600,000)
Depreciation expense (152,000) (80,000)
Interest expense (40,000) 0
Other expense (92,000) (120,000) Non-controlling share Net income 428,000 200,000 RETAINED EARNINGS Retained earnings - 1/1 300,000 200,000 Net income 428,000 200,000 Dividends (320,000) (160,000)
Retained earnings - end 408,000 240,000
BALANCE SHEET Cash 54,000 360,000 Bond interest receivable 0 0 Other receivables 80,000 60,000 Inventories 160,000 100,000 Land 180,000 140,000 Buildings-net 300,000 360,000 Equipment-net 280,000 180,000 Investment in Sum stock 674,000 0
Investment in Pad bonds 0 0
Total assets 1,728,000 1,200,000 Accounts payable 100,000 160,000 Bond interest payable 20,000 0 10% bonds payable 400,000 0 Common stock 800,000 800,000 Retained earnings 408,000 240,000 Total equities 1,728,000 1,200,000 Non-controlling interest 0 0 P 7-3 PAD CORPORATION AND SUBSIDIARY CONSOLIDATION WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2011
75% Adjustments & Eliminations
PAD SUM Debits Credits Consolidated INCOME STATEMENT Sales 1,260,000 1,000,000 Gain on plant 0 0 Gain on building 0 0 Income from Sum 162,000 0 Constructive gain 0 0 Cost of sales (700,000) (600,000)
Depreciation expense (152,000) (80,000)
Interest expense (40,000) 0
Other expense (92,000) (120,000) Non-controlling share Net income 438,000 200,000 RETAINED EARNINGS Retained earnings - 1/1 300,000 200,000 Net income 438,000 200,000 Dividends (320,000) (160,000)
Retained earnings - end 418,000 240,000
BALANCE SHEET Cash 54,000 162,000 Bond interest receivable 0 10,000 Other receivables 80,000 60,000 Inventories 160,000 100,000 Land 180,000 140,000 Buildings-net 300,000 360,000 Equipment-net 280,000 180,000 Investment in Sum stock 792,000 0
Investment in Pad bonds 0 188,000
Total assets 1,846,000 1,200,000 Accounts payable 208,000 160,000 Bond interest payable 20,000 0 10% bonds payable 400,000 0 Common stock 800,000 800,000 Retained earnings 418,000 240,000 Total equities 1,846,000 1,200,000 Non-controlling interest 0 0