Company P Industries Purchased a 70% Interest in Company S

question 17

Essay

Company P Industries purchased a 70% interest in Company S on January 1, 2016, and prepared the following determination and distribution of excess schedule:
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Since the purchase, there have been the following intercompany transactions:
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Required:
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Complete the following schedule to adjust the retained earnings of the non-controlling and controlling interest on the December 31, 2020, worksheet for a consolidated balance sheet only.Company P uses the simple equity method to account for its investment.
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Definitions:

Months

Units of time in the Gregorian calendar, approximately 30 to 31 days long, used to measure longer periods of time than days and weeks.

Pinna

The visible part of the ear that is outside the head, involved in collecting sound waves and directing them into the auditory canal.

External Ear

The visible portion of the ear that resides outside the head, including the pinna and the ear canal, which collects sound waves and directs them to the eardrum.

Otitis

Inflammation of the ear, which can affect the outer, middle, or inner parts, often causing pain and discomfort.