The Following Comparative Consolidated Trial Balances Apply to Perella Company

question 11

Essay

The following comparative consolidated trial balances apply to Perella Company and its subsidiary Sherwood Company (80% control):
The following is additional information for 20X5:
a)No trading securities were sold nor were any investments added to the portfolio.
b)Land was acquired by issuing a $40,000 note and giving cash for the balance.
c)Equipment (cost $50,000; accumulated depreciation $40,000) was sold for $3,000
d)Dividends declared and paid: Perella 50,000; Sherwood $40,000.
e)Consolidated net income amounted to $178,900.
Required:
Prepare the consolidated statement of cash flows for the year ended December 31, 20X5, for Perella and its subsidiary.

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Definitions:

Isoelectronic

Describes atoms, molecules, or ions that have the same number of electrons and similar electronic structure, but different nuclear charges.

Octet Rule

A chemical rule of thumb that states atoms tend to combine in such a way that they each have eight electrons in their valence shells, giving them the same electron configuration as a noble gas.

Lewis Dot Structure

A diagrammatic method for representing an atom's valence electrons and the chemical bonds between atoms within a molecule.

Helium (He)

A colorless, odorless, tasteless, non-toxic, inert monatomic gas with the atomic number 2, making it the second lightest and second most abundant element in the observable universe.