Question: Pillow Company purchased 90 of the common stock of Satin

Pillow Company purchased 90% of the common stock of Satin Company on May 1, 2009, for a cash payment of $474,000. December 31, 2009, trial balances for Pillow and Satin were:

Satin Company declared a $60,000 cash dividend on December 20, 2009, payable on January 10, 2010, to stockholders of record on December 31, 2009. Pillow Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment.

Prepare a consolidated statements workpaper at December 31, 2009, assuming that revenue and expense accounts of Satin Company for the entire year are included with those of Pillow Company. (Assume the full-year reportingalternative.)

Sale on SolutionInn
  • CreatedMarch 13, 2015
  • Files Included
Post your question