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Paris Corporation and Slater Company prepared the following statements of income and retained earnings on December 31 of the current year Sales Paris $900,000 Slater $500000 Dividend income

Paris Corporation and Slater Company prepared the following statements of income and retained earnings on December 31 of the current year Sales Paris $900,000 Slater $500000 Dividend income

Paris Corporation and Slater Company prepared the following statements of income and retained earnings on December 31 of the current year:

 

Sales

Paris

$900,000

 

Slater

$500,000

Dividend income

60,000

 

 

960,000

 

500,000

Cost of sales

600,000

 

300,000

Operating expenses

200,000

 

80,000

 

800,000

 

380,000

Net income

160,000

 

120,000

Retained earnings, January 1

301,000

 

584,000

 

461,000

 

704,000

Dividends

150,000

 

75,000

Retained earnings, December 31

$311,000

 

$629,000

Paris obtained its 80% interest in Slater 8 years ago when Slater had retained earnings of $53,000. The $100,000 acquisition differential on acquisition date was allocated entirely to intangible assets with an estimated remaining useful life of 10 years. Paris uses the cost method to account for its investment.

 

Required:

Prepare the following statements for the current year: (a) Consolidated income statement

(b) Consolidated etained earnings statement

Tripti 09-Jul-2020

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