Question

On January 1, 2010, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained earnings, $25,000. Assume that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2010, the two companies’ trial balances were as follows:



Required:
A. Prepare a consolidated statements workpaper on December 31, 2010.
B. Prepare a consolidated statements workpaper on December 31, 2011, assuming trial balances for Parker and Sid on that datewere:


$1.99
Sales0
Views49
Comments0
  • CreatedMarch 13, 2015
  • Files Included
Post your question
5000