C.

Pilar Corporation and Subsidiary

Working Paper for Consolidated Financial Statement
December 31,2017

Pilar Sally Wood Adjustments & Eliminations

Consolidated
Corporation Products Debit Credit
Income Statement
Sales 200,000 100,000 300,000
Dividend income 8,000 (1) 8,000 -
Total revenue 208,000 100,000 300,000

Cost of goods sold 120,000 50,000 170,000

Depreciation expense 25,000 15,000 (4) 5,000 45,000
Inventory losses 15,000 5,000 20,000
Total cost and expenses 160,000 70,000 235,000
Net/Consolidated income to RE 48,000 30,000 65,000
NCI in net income of subsidiary (6) 5,000 -5,000
Net income carried forward 48,000 30,000 60,000

Statement of Retained Earnings

Retained earnings, 1/1 298,000 90,000 (2) 50,000 326,000
(4) 5,000
(7) 7,000
Net loss from above 48,000 30,000 60,000
Total 346,000 120,000 386,000
Dividends declared 30,000 10,000 (1) 10,000 30,000
Retained earnings, 12/31
carried forward 316,000 110,000 356,000

Statement of FP
Cash and receivables 81,000 65,000 (5) 10,000 136,000
Inventory 260,000 90,000 350,000
Land 80,000 80,000 160,000
Buildings and equipment-net 295,000 45,000 (3) 50,000 (4) 10,000 380,000
Investment in Sally Wood Products Company 160,000 (2) 120,000 -
(3) 40,000
Total Assets 876,000 280,000 1,026,000

Accounts payable 60,000 20,000 (5) 10,000 70,000

Notes payable 200,000 50,000 250,000
Common stock 300,000 100,000 (2) 100,000 300,000
Retained earnings from above 316,000 110,000 356,000
NCI (2) 30,000
(3) 10,000
(1) 2,000 50,000
(6) 5,000
(7) 7,000
Total Liabilities and Equity 876,000 280,000 242,000 242,000 1,026,000