Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2012, for a

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Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2012, for a cash payment of $590,000. December 31, 2012, trial balances for Punca and Surrano were:

Punca Company purchased 85% of the common stock of Surrano

Surrano Company declared a $50,000 cash dividend on December 20, 2012, payable on January 10, 2013, to stockholders of record on December 31, 2012. Punca 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. Income is earned evenly throughout the year.
Required:
Prepare a consolidated statements work paper at December 31, 2012.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Advanced Accounting

ISBN: 978-1119119364

6th edition

Authors: Debra Jeter, Paul Chaney

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