5 Stark Revenues Cost of goods sold Other operating expenses Gain on sale of lan

Question

5 Stark Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Panther, Inc $(925,488) 398, 288 217,908 (28,788) Corporation s(486,8e8) 213,8e8 91,288 10 points Net income $(389,958) $ (181,888) Retained earnings 1/1/18 Net income Dividends declared $(382,588) (389,958) $ (338,788) (181,888) 4e,588 $ (392,808) 186,6e Retained earnings 12/31/18 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equip Patented technology $ (665,858) 153,800 465, 788 828,488 eBook $ 285,808 145, 780 Print 76,688 369,788 8165,e8 $ 962,eee . (net) 956,588 $ 2,395,688 Total assets Liabilities Common stock Additional paid-in capital Retained earnings 12/31/18 References $ (99e,858) (489,888) (338,908) 665,85e $ (2,395,688) $ (314,658) (215,e08) (48,358) 392 , Total liabilities and equity $ (962,808) a. Show how Panther computed its $59,950 equity in Stark's earnings balance. b. Prepare a 2018 consolidated worksheet for Panther and Stark. Complete this question by entering your answers in the tabs below Required A Required B Show how Panther computed its $59,950 equity in Stark's earnings balance Equity in Stark's earnings Required B >

Explanation / Answer

PANTHER AND STARK Consolidated Worksheet Year Ending Balance Decembeer 31, 2018 Consolidated Entries Accounts Panther Stark Dr. Cr Consolidated Totals ($) ($) ($) ($) ($) Revenues -9,25,000 -4,06,000 -13,31,000 -13,31,000 Cost of goods Sold 3,98,200 2,13,000 6,11,200 6,11,200 Other Operating Expenses 2,17,900 91200 3,09,100 3,09,100 Gain on sale of Land -20,700 0 20,700 -20,700 Equity in Stark's Earnings -59,950 0 59,950 59,950 Net Income -3,89,550 -1,01,800 -3,71,450 -3,71,450 Retained Earnings 1/1 -3,82,500 -330700 7,13,200 -7,13,200 Net Income -3,89,950 -101800 -3,71,450 -3,71,450 Dividend Declared 1,06,600 40500 1,47,100 1,47,100 Retained Earnings 12/31 -6,65,850 -392000 Cash and Receivables 1,53,000 205000 3,58,000 3,58,000 Inventory 4,65,700 1,45,700 6,11,400 6,11,400 Investment in Stark 8,20,400 0 8,20,400 8,20,400 Trademarks 0 76,600 76,600 76,600 Land, Buildings and equipments (net) 9,56,500 3,69,700 13,26,200 13,26,200 Patented Technology 0 1,65,000 1,65,000 1,65,000 Total Assets 23,95,600 9,62,000 33,57,600 33,57,600 Liabilities -9,90,850 -3,15,650 -13,06,500 -13,06,500 Common Stock -4,00,000 -2,15,000 -6,15,000 -6,15,000 Additional Paid in Capital -3,38,900 -40,350 -3,79,250 -3,79,250 Retained Earnings (Above) -6,65,850 -3,92,000 -10,57,850 -10,57,850 Total Liabilities & Stockholders' Equity -23,95,600 -9,63,000 -33,58,600 -33,58,600

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