Financial statements for Pam and Sun Corporations for 2016 are summarized as follows (in thousands): Pam owns
Question:
Financial statements for Pam and Sun Corporations for 2016 are summarized as follows (in thousands):
Pam owns 90,000 shares of Sun's outstanding voting common stock at December 31, 2016.
These shares were acquired in two lots as follows:
The stockholders' equity of Sun at year-end 2014, 2015, and 2016 was as follows (in thousands):
Sun's net income for 2016 is $90,000, earned proportionately throughout the year, and its quarterly dividends of $12,500 are declared on March 15, June 15, September 15, and December 15. (Quarterly dividends of $12,500 include dividends on common stock and preferred stock.) There are no intercompany receivables or payables at December 31, 2016, and there have been no intercompany transactions other than dividends.
REQUIRED:
Prepare a consolidation workpaper for Pam and Subsidiary for 2016.
Step by Step Answer:
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith