Professional Documents
Culture Documents
and Procedures
2003 2004
Net income $25,000 Net income $30,000
Dividends $15,000 Dividends $15,000
d Expenses 1,500
Patents 1,500
To enter current amortization
*Patent amortization
©2009 Accounting Department, University Of Siliwangi
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Equity Method –
Year Subsequent to Acquisition
Expenses 1,500
Patents 1,500
To enter current amortization
Notes Payable, Prep 10,000
Note Receivable, Snap 10,000
To eliminate reciprocal receivable and
payable balances
©2009 Accounting Department, University Of Siliwangi
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Locating Errors
July 1, 2004
Cash 9,000
Investment in Solo 9,000
To record dividends from Solo
December 31, 2004
Investment in Solo 45,000
Income from Solo 45,000
To record dividends from Solo
How was this determined?
©2009 Accounting Department, University Of Siliwangi
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Consolidation After Acquisition
b Cash 20,000
Note Receivable, Solo 20,000
To enter receipt of intercompany note receivable
©2009 Accounting Department, University Of Siliwangi
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Working Paper Entries
Consolidated Consolidated
balance income
sheets statements
Consolidated
statement of
cash flows
©2009 Accounting Department, University Of Siliwangi
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Consolidated Statement of Cash Flows