On January 1, 2016, Mitta Corporation acquires a 60% interest (12,000 shares) in Train Company for $156,000. Train stockholders equity on the purchase date is as follows:Common stock ($5 par)$100,000Paid-in capital in excess of par50,000Retained earnings 80,000 Total stockholders equity$230,000At the purchase date, Trains book values for assets and liabilities closely approximate fair values. Any excess of cost over book value is attributed to goodwill.On January 1, 2017, Train Company sells 5,000 shares of common stock in a public offering at $20 per share. Mitta Corporation purchases 4,000 shares.During 2017, Mitta sells $30,000 of goods to Train at a gross profit of 25%. There are $6,000 of Mitta goods in Trains beginning inventory and $8,000 of Mitta goods in Trains ending inventory.Merchandise sales by Train to Mitta are $20,000 during 2017 at a gross profit of 30%. There are $6,000 of Train goods in Mittas beginning inventory and $2,000 of Train goods in Mittas ending inventory.Intercompany gross profit rates have been constant for many years. There are no intercompany payables/receivables.Mittas investment in Train Company balance is determined as follows:Original cost$156,00060% of Train 2016 income ($40,000 × 60%) 24,000 Subtotal$180,000Less 60% of Train dividends declared in 2016 (60% × $8,000) (4,800) Subtotal$175,200Cost to acquire additional shares (new issue)80,00064% of Train 2017 income ($50,000 × 64%) 32,000 Subtotal$287,200Less 64% of Train dividends declared in 2017 (64% × $10,000) (6,400) Investment balance, December 31, 2017$280,800The trial balances of the two companies as of December 31, 2017, are as follows:Mitta CorporationTrain CompanyCash106,20063,500Accounts Receivable113,60060,000Inventory350,00080,000Investment in Train Company280,800Property, Plant, and Equipment1,800,000360,000Accumulated Depreciation(600,000)(89,500)Accounts Payable(180,000)(64,000)Other Current Liabilities(26,000)(8,000)Bonds Payable(500,000) Common Stock ($10 par)(1,000,000)Common Stock ($5 par)(125,000)Paid-In Capital in Excess of Par(125,000)Retained Earnings, January 1, 2017(212,600)(112,000)Sales(1,950,000)(600,000)Subsidiary Income(32,000)Cost of Goods Sold1,170,000420,000Other Expenses630,000130,000Dividends Declared 50,000 10,000 Totals 0 0Prepare the worksheet necessary to produce the consolidated financial statements of Mitta Corporation and its subsidiary as of December 31, 2017. Include the determination and distribution of excess and income distribution schedule.Solution- Mitta Corporation and SubsidiaryWorksheet for Consolidated FinanFor Year Ended December 3Trial Balance CashAccounts ReceivableInventory Mitta$106,200$113,600$350,000 Investment in…
On January 1, 2016, Mitta Corporation acquires a 60% interest (12,000 shares) in Train Company for $156,000. Train stockholders’ equity on the…
Give us your instructions.
Select the type of service you need: writing, calculations, or programming. We’ve created an intuitive order form that tells you what information to enter and where, so make sure to fill out each required field. Also, make your requirements as specific as possible. Don’t rush! Take your time and explain everything in detail how it works.
Proceed to checkout and enter your credit card details or PayPal login, how to pay. Follow the payment provider’s instructions to confirm the transaction.
Now your order is in our system! We’ll start processing it right away.
Place Your Order
Frequently asked questions
Is your service confidential?
When you place an order with our company, we ask you to provide us with such personal information as your name, phone number, and email address. We need this data to keep you updated on the important things related to your order or account.
Is there a possibility of plagiarism in my completed order?
We complete each paper from scratch and in order to make you feel safe regarding its authenticity, we check it for plagiarism before its delivery. To do that, we use our in-house software, which can find not only copy-pasted fragments but even paraphrased pieces of text. Unlike popular plagiarism detection systems that are used by most universities (e.g. Turnitin.com), we do not report to any public databases—therefore, such checking is safe.
We provide a plagiarism-free guarantee that ensures your paper is always checked for its uniqueness.
Is there a money-back guarantee? If yes, how can I receive a refund?
You can certainly get your money back in several cases. You can receive a full refund if you have paid for your order twice or if you have placed two identical orders. In case your paper was late or the quality of the paper does not correspond to your expectations, you will get compensation for these issues.
Do you keep a database of pre-written essays?
No, we do not have such a database. All papers you order from us are written from scratch. This means your paper is unique and has never been published before—neither will it be published after we deliver it to you.
When will my custom paper be done?
While placing an order with WritersHub, you can choose a period of time within which a paper should be delivered to you. The countdown until the specified deadline starts automatically from the moment we receive your payment in our system. For example, if you pay for your order at 6pm on Monday and choose a 3-day delivery option, you will receive your custom paper by 6pm on Thursday.
Remember that a writer needs a sufficient amount of time in order to conduct thorough research. Therefore, please choose the most suitable deadline when you place an order. Moreover, the later you need your paper to be delivered to you, the cheaper it will be. Thus, you will be able to save your money while your writer will have enough time to work on your order and ensure its quality.
Make sure you upload all the additional materials at the very beginning. If you fail to do that, the deadline for your order will be postponed as well.
I haven’t received my custom paper by the deadline. What should I do?
Let us know immediately about that. You can do it by writing a message on Facebook or email us. Our support manager will carefully examine your order and will assist you with it right away. The reasons for late delivery may vary from time to time. It can happen that you have entered a wrong email address or your spam filter does not allow you to receive emails from us. It is also possible that the writer is waiting for your reply and can not continue working without your assistance, or we are checking the work for plagiarism. Whatever the case may be, contact us if you have any problems with getting your order on time.