Answered You can hire a professional tutor to get the answer.
Chapter 6 Introduction to this program This worksheet contains spreadsheets that complete the consolidated worksheet after the student inputs the...
"6-16 Complete equity with downstream sales.Pruitt corporation owns 90% of the common stock of Sedbrook company. The stock was purchased for $540,000 on January 1, 2009, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balance for the two companies at December 31, 2013 are presented here: (see attached templates).The January 1, 2013 inventory of Sedbrook Company includes $30,000 of profit recorded by Pruitt Corporation on 2012 sales. During 2013, Pruitt Corporation made intercompany sales of $200,000 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2013 from Pruitt for $50,000. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company.Required:A. Prepare the consolidated statements workpaper for the year ended December 31, 2013.B. Calculate consolidated retained earnings on December 31, 2013, using the analytical or t-account approach.Problem 6-17Paque Corporation owns 90% of the common stock of Segal Company. The stock was purchased for $810,000 on January 1, 2009, when Segal Company's retained earnings were $150,000.Finanicial data for 2013 are presented here (see attached templates)The January 1, 2013 inventory of Paque Corporation includes $45,000 of profit recorded by Segal Company on 2012 sales. During 2013, Segal Company made intercompany sales of $300,000 with a markup of 20% of selling price. The ending inventory of Paque Corporation includes goods purchased in 2013 from Segal Company for $75,000. Paque Corporation uses the complete equity method to record its investment in Segal Company.Required:A. Prepare the consolidated statements workpaper for the year ended December 31, 2013.B. Calculate consolidated retained earnings on December 31, 2013, using the analystical or t-account approach." ***Please see attached templates. You can use the information and figures to complete the questions
