Belchfire Motors’ accountant was called away after completing only half of the c

Question

Belchfire Motors’ accountant was called away after completing only half of the consolidated statements at the end of 20X4. The data left behind included the following:

Belchfire Motors acquired shares of Premium Body Shop at underlying book value on January 1, 20X1. What portion of the ownership of Premium Body Shop does Belchfire apparently hold?

Compute the consolidated totals for each of the remaining balance sheet items.

-- Account payable

--Bonds payable

--Common stocks

--Retained earning

Belchfire Motors’ accountant was called away after completing only half of the consolidated statements at the end of 20X4. The data left behind included the following:

Explanation / Answer

Account Payable $ 60,000 Account Receivable were reduced by $10,000 , Presumably as a reduction of receivable and payable. Bonds Payable 6,00,000 There no indication of intercorporation ownership. Common stock 2,00,000 Common stock of premium Must Be eliminated. Retained Earnings 2,60,000 Retained Earnings of Premium also Must Be eliminated in preparing consolidated statement. $1,120,000

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