Question

Part III: Complete the consolidation worksheet. Enter the necessary 12/31/2018 consolidation entries. Label your entries (S,A,I,D,E) in narrow column beside entries. Enter formulas in the consolidation total column to complete the worksheet.

	12/31/2018            Pig Company	12/31/2018     Sig Company		Consolidation Entries			Consolidated     12/31/2018
				Debit		Credit
Income Statement
Revenues	(800,000)	(450,000)
Cost of Goods Sold	360,000	210,000
Depreciation Expense	100,000	40,000
Amortization Expense
Operating Expenses	60,000	50,000
Equity in Net Income of Sig	(138,000)
Net Income	(418,000)	(150,000)

Answer 1

	31/12/2018	31/12/2018	Consolidated entries		31/12/2018
	Pig Company($)	Sig Company($)	Debit($)	Credit($)	Consolidated
Income Statement
Revenue	800000	450000		1250000	1250000
Cost of Goods sold	-360000	-210000	-570000		-570000
DEpreciation Expense	-100000	-40000	-140000		-140000
Amortisation expenses	0	0	0		0
Operating Expenses	-60000	-50000	-110000		-110000
Equity in Net Income of sig	138000	0		138000	138000
Net Income	418000	150000	-820000	1388000	568000

Consolidated Entry
Income From Pig Company A/C DR $418000
Income From Sig Company A/C DR $ 150000
To Income transfered to Consolidated CR $ 568000
(Being income from subsidiary companies transfered to holding company)