On January 1, 2010, Parker Company purchased 95% of the outstanding common stock of Sid Company for
Question:
On January 1, 2010, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. 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:
Transcribed Image Text:
Sid 67,000 56,000 38,000 16,000 32,000 48,500 Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses 160,000 124,000 80,000 34,000 20,000 52,000 18,000 679,000 300,500 $7,000 14,500 120,000 10,000 29,000 120,000 29,000 20,000 155,000 30,000 Total Debits 16,000 15,000 Accounts Pavable Other Liabilities Common Stock Other Contributed Capital Retained Earmings, 1/1 Sales Dividend Income 180,000 60,000 149,000 240,000 19,000 Total Credits $679,000 $300,500
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Parker Company and Subsidiary Consolidated Statements Work paper Workpaper Cost Method For the Year Ended December 31 20 10 Part A 20 10 Parker Company Sid Company Eliminating Entries Non controlling ...View the full answer
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