Consolidated Financial Statement

Question 1

What percent of control

Answer 1

50% or greater

Question 2

EAG is

Answer 2

Debited

Question 3

LIN is

Answer 3

Credit

Question 4

E is EAGLIN stands for

Answer 4

Equity

Question 5

What are 3 parts of equity in E for EAGLIN

Answer 5

Common stock, APIC, RE

Question 6

The A in EAGLIN

Answer 6

Asset

Question 7

What is the formula on A & L on eaglin

Answer 7

Fair value > Book Value net of excess depreciation

Question 8

G in eaglin

Answer 8

Goodwill

Question 9

I in eaglin

Answer 9

Investment in sub

Question 10

N is eaglin

Answer 10

Non controlling interest

Question 11

Eaglin - what

Answer 11

Intracompany transactions

Question 12

Journal entry for acquisition of sub

Answer 12

Debit investment in sub
Credit cash or debt

Question 13

5 steps to this (SAECP)

Answer 13

Separate
Adjust
Eliminate
Complete
Prepare

Question 14

Equity earnings is found by

Answer 14

+ % share of subs NI
Minus
% excess depreciation

Question 15

Under equity method what is formula to find ending carrying value of a sub

Answer 15

Cost
+ % share of subs net income
- % excess depreciation
- % share of dividends

Question 16

If a parent owns 100% of sub that means no

Answer 16

Noncontrolling interest

Question 17

Cost or equity method will effect the carrying value of

Answer 17

Investment and income

Question 18

Inter company transaction on income statement JE

Answer 18

Debut sales
Credit COGs
Credit Inventory

Question 19

Inter company transaction on balance sheet JE

Answer 19

Debit retained earnings
Credit investment

Question 20

Consolidated equity equals

Answer 20

Parent equity + non controlling interest

Question 21

Some inter company transactions would be

Answer 21

AR, AP, Sales

Question 22

After date of transfer, under cost method: investment in sub = ; income statement =

Answer 22

No change ; parent dividend income

Question 23

After date, under equity method: investment in sub equals; income statement equals

Answer 23

Change ; Divendeds not income ( equity earnings )

Question 24

Parent equity method JE for parent share of subs income or loss

Answer 24

Debit investment
Credit Equity Earnings

Question 25

Parent equity method JE for parent dividends declared

Answer 25

Debit divendends receivable - cash
Credit investment in sub

Question 26

Parent equity method JE for parent amortization in difference of fair value & carrying value

Answer 26

Debit Equity earnings
Credit investment in sub

Question 27

Goodwill is net of

Answer 27

Impairment

Question 28

Cost method does what 2 things

Answer 28

Eliminated dividends and investment in sub equals