Statement of Retained Earnings, Balance Sheet, and Income

School: Southern Illinois University, Carbondale - Course: ACCT 421 - Subject: Accounting

HH2E - P3-36 dataConsolidation entries Parent SubsidiaryDrCrConsolidated Income statement: Sales3,700,000 2,100,000 5,800,000 Cost of goods sold(2,590,000)(1,260,000)(3,850,000) Gross Profit1,110,000 840,000 1,950,000 Equity income294,000 C294,0000 Operating expenses(703,000)(546,000)(1,249,000) Net income701,000 294,000 701,000 Statement of retained earnings: BOY retained earnings2,352,000 1,085,000 E1,085,0002,352,000 Net income701,000 294,000 294,000701,000 Dividends(140,200)(44,100)C44,100(140,200) Ending retained earnings2,912,800 1,334,900 2,912,800 Balance sheet: Assets Cash877,400 541,100 1,418,500 Accounts receivable473,600 487,200 960,800 Inventory 717,800 625,800 1,343,600 Equity Investment1,649,900 C294,000 E1,355,900 0 PPE, net2,712,840 1,157,800 3,870,640 6,431,540 2,811,900 7,593,540 Liabilities and Stockholders' Equity Accounts payable270,840 200,200 471,040 Accrued liabilities321,900 261,800 583,700 Long-term Liabilities 0 700,000 700,000 Common Stock518,000 140,000 E140,000518,000 APIC2,408,000 175,000 E175,0002,408,000 Retained Earnings2,912,800 1,334,900 1,290,80044,100 2,912,800

6,431,540 2,811,900 7,593,540