Refer to the previous problem, Cord Company uses the equity method. Assume the following are from the adjusted trial balances of Cord Company and Thorpe Company on 2010 December 31
|
Company |
Company |
|
|
Debit balance accounts |
||
|
Cash |
$351,000 |
$315,000 |
|
Accounts receivable, net |
378,000 |
180,000 |
|
Notes receivable |
315,000 |
45,000 |
|
Merchandise inventory, December 31 |
495,000 |
287,100 |
|
Investment in Thorpe Company |
2,790,000 |
|
|
Equipment, net |
615,000 |
427,500 |
|
Building, net |
1,814,400 |
950,400 |
|
Land |
765,000 |
405,000 |
|
Cost of goods sold |
1,800,000 |
630,000 |
|
Expense (excluding depreciation and taxes) |
720,000 |
270,900 |
|
Depreciation expense |
108,000 |
62,100 |
|
Income tax expense |
585,000 |
189,000 |
|
Dividends |
540,000 |
108,000 |
|
Total of the accounts with debit balances |
$11,277,000 |
$3,870,000 |
|
Credit balance accounts |
||
|
Accounts payable |
$135,000 |
$180,000 |
|
Notes payable |
144,000 |
90,000 |
|
Common stock – $45 par value |
5,400,000 |
1,800,000 |
|
Retained earnings – January 1 |
1,800,000 |
450,000 |
|
Revenue from sales |
3,600,000 |
1350000 |
|
Income from Thorpe Company |
198,000 |
|
|
Total of the accounts with credit balances |
$11,277,000 |
$3,870,000 |
There is no intercompany debt at the end of the year. Prepare a work sheet for consolidated financial statements on 2010 December 31.