Refer back to the previous problem. Maple Company uses the equity method. Assume the following amounts are taken from the adjusted trial balances of Maple Company and Dodd Company on 2010 December 31:
|
Maple |
Dodd |
|
|
Debit balance accounts |
Company |
Company |
|
Cash |
$864,000 |
$364,295 |
|
Accounts receivable, net |
553,536 |
414,000 |
|
Notes receivable |
342,000 |
90,000 |
|
Merchandise inventory, December 31 |
1,530,000 |
1,008,000 |
|
Investment in Dodd Company |
$4,519,356 |
|
|
Equipment, net |
1,147,500 |
691,860 |
|
Building, net |
3,136,500 |
1,573,200 |
|
Land |
1,404,000 |
450,000 |
|
Cost of goods sold |
8,064,000 |
$2,160,000 |
|
Expense (excluding depreciation and taxes) |
2,160,000 |
810,000 |
|
Depreciation expense |
243,000 |
$128,940 |
|
Income tax expense |
569,664 |
123,504 |
|
Dividends |
477,000 |
178,200 |
|
Total of the accounts with debit balances |
$25,037,556 |
$7,992,000 |
|
Credit balance accounts |
||
|
Accounts payable |
$720,000 |
$378,000 |
|
Notes payable |
270,000 |
180,000 |
|
Common stock – $90 par value |
9,540,000 |
3,564,000 |
|
Retained earnings |
2,610,000 |
270,000 |
|
Revenue from sales |
11,520,000 |
3,600,000 |
|
Income from Dodd Company |
377,556 |
|
|
Total of the accounts with credit balances |
$25,037,556 |
$7,992,000 |
There is no intercompany debt at the end of the year Prepare a work sheet for consolidated financial statements on 2010 December 31.