QUESTION Pluto Company acquired 80 percent of Saturn Company's outstanding common stock for $73,600 on January 1, 2020,

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Question Pluto Company Acquired 80 Percent Of Saturn Company S Outstanding Common Stock For 73 600 On January 1 2020 1 (70.13 KiB) Viewed 51 times

Question Pluto Company Acquired 80 Percent Of Saturn Company S Outstanding Common Stock For 73 600 On January 1 2020 2 (8.21 KiB) Viewed 51 times

Question Pluto Company Acquired 80 Percent Of Saturn Company S Outstanding Common Stock For 73 600 On January 1 2020 3 (10.64 KiB) Viewed 51 times

Question Pluto Company Acquired 80 Percent Of Saturn Company S Outstanding Common Stock For 73 600 On January 1 2020 4 (52.57 KiB) Viewed 51 times

QUESTION Pluto Company acquired 80 percent of Saturn Company's outstanding common stock for $73,600 on January 1, 2020, when the book value of Saturn's net assets was equals to $92,000. Pluto uses equity method for investments. Adjusted trial balance data for Pluto and Saturn as of December 31, 2020, are as follows: Pluto Company Saturn Company DR CR DR CR Cash & receivables $57,000 $12,500 Inventory 145,000 50,000 Patent 25,000 12,000 Investment in Saturn 78,000 Land 50,000 80,000 Buildings and equipment 127,250 75,000 Cost of Goods Sold 114,000 35,000 Depreciation Expense 12,500 6,500 Administrative and Selling Expenses 62,500 22,500 Dividends Declared 22,500 4,500 Accumulated Depreciation $75,000 $44,500 Accounts Payable 95,250 56,300 Notes Payable 46,000 31,200 Common Stock 120,000 60,000 Retained Earnings 80,000 32,000 Sales 269,500 74,000 Income from Saturn 8,000 Total $693,750 $693,750 $298,000 $298,000

d) Prepare accumulated depreciation consolidation entry (10 points). e) Prepare a consolidation worksheet for 2020 in good form (30 points).

Accumulated Depreciation Consolidation Entry ACCOUNT TITLE Debit Credit

Consolidation worksheet Elimination Entries Income Statement Pluto Saturn Consolidated DR CR Sales Less: COGS Less: Depreciation Expense Less: Other Expenses Income from Saturn Consolidated Net Income NCI in Net income of Saturn Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Assets Cash & receivables Inventory Patent Investment in Saturn Land Buildings and equipment Less: Accumulated Depreciation Total Assets Liabilities and Equity Accounts Payable Notes Payable Common Stock Retained Earnings NCI in Net Assets of Saturn Total Liabilities & Equity