Use the Following Information for Questions:
on January 1

question 18

Multiple Choice

Use the following information for questions:
On January 1, 2011, Stinton Inc. purchased 60% of Halston Co. for $60,000. There was no difference between the book value and fair market value of Halston’s net assets. At year-end management determined there had been no impairment in Goodwill since the purchase. The equity sections of the two balance sheets at acquisition were as follows: $\begin{array}{lrr}&\text { Stinton Inc.}&\text { Halston Co. }\\\text { Common shares } & \$ 100,000 & \$ 40,000 \\\text { Retained earnings } & 40,000 & 8,000\end{array}$ During the year, Halston earned $10,000 and paid cash dividends of $2,000.
-The amount of non-controlling interest that would appear on the consolidated balance sheet at January 1, 2011 would be:

• A)$ 3,200
• B)$16,000
• C)$19,200
• D)$40,000

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Definitions:

Office Supplies

Consumable items used in an office setting, such as paper, pens, and office equipment.

Unearned Revenue

Prepayment from customers for goods or services which have not yet been delivered or performed, representing a liability until the obligation is fulfilled.

General Journal

The general journal is an accounting ledger in which all types of transactions are initially recorded, formatted by date, before being transferred to specific accounts in the general ledger.

Landscaping Services

Professional services that encompass the planning, designing, and maintenance of outdoor and garden spaces.