PROBLEM 16-6

Perfect Corporation and Subsidiary

Consolidated Working Paper
Year Ended December 31, 2014 FIRST YEAR
Perfect
Corporation
Statement of CI
Sales
Dividend Income
Total Revenue
COGS
Interest expenses
Depreciation Expense
Other expenses
Goodwill Impairment
Loss
Total cost and
expenses
Net/Consolidated
Income
NCI in CI of subsidiary
CI, carried forward
Statement of R/E
Retained earnings, Jan 1
P
S
CI From above
Dividends declared
P
S
Retained earnings,
Dec 31
Statement of FP
Cash
Accounts Receivable
Inventory
Land
Equipment
Less: Accumulated
Depreciation-Equipment
Building
Less: Accumulated
Depreciation-Building
Goodwill
Investment in Son

Son
Company

400,000
24,000
424,000

200,000

170,000

115,000

50,000
40,000

20,000
15,000

Eliminations & Adjustments

Debit
Credit

Consolidated

600,000
(1)24,000

200,000

600,000
(4)5,000
(4)1,000
(4)5,000

290,000
1,000
75,000
55,000
3,125

(4)3,125
260,000

150,000

424,125

164,000

30,000

175,875

164,000

50,000

(5)7,175

(7,175)
168,700

300,000

300,000
100,000

164,000

(2)100,000

50,000

168,700

(60,000)

(60,000)

404,000

(30,000)
120,000

194,000
75,000
100,000
175,000
200,000
(112,500)

75,000
50,000
75,000
40,000
150,000
(80,000)

600,000
(337,500)

450,000
(240,000)

(1)30,000
408,700

(3)5,000
(3)6,000

(4)5,000

(3)80,000

(4)10,000

(3)160,000
(4)5,000
(3)12,500

310,000

269,000
125,000
175,000
221,000
350,000
(122,500)

(3)180,000

870,000
(412,500)

(4)3,125
(2)240,000
(3)70,000

9,375
-

TOTAL ASSETS

1,204,000

520,000

1.484,375

Accounts Payable
Bonds Payable
Less:Discount on Bonds
Common stock
P
S
Retained Earnings, from
SRE
NCI

100,000
200,000

100,000
100,000

200,000
300,000
(3,000)

TOTAL LIAB & EQUITY

1,204,000

(3)4,000

(4)1000

500,000
404,000

500,000
200,000
120,000

(2)200,000
408,700
(1)6,000

520,000

166,000

(2)60,000
(3)17,500
(5)7,175
166,000

78,675

1,484,375