Per Corporation paid $900,000 cash for 90 percent of Sim Corporation's common stock on January 1, 2011, when Sim had $600,000 capital stock and $200,000 retained earnings. The book values of Sim's assets and liabilities were equal to fair values. During 2011, Sim reported net income of $40,000 and declared $20,000 in dividends on December 31. Balance sheets for Per and Sim at December 31, 2011, are as follows (in thousands):

REQUIRED: Prepare consolidated balance sheet workpapers for Per Corporation and Subsidiary for December 31,2011.

Transcribed Image Text:

Per Sim Assets $ 84 Cash 40 Receivables-net Inventories 100 700 260 100 Land 300 400 200 Equipment-net Investment in Sim 1,200 918 $3.302 $1.000 Equities Accounts payable Dividends payable Capital stock Retained earnings $ 820 120 $ 160 20 2,000 362 600 220 $3,302 $1,000