Separate company financial statements for Pen Corporation and its subsidiary, Syn Company, at and for the year
Question:
Separate company financial statements for Pen Corporation and its subsidiary, Syn Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands):
ADDITIONAL INFORMATION
1. Pen Corporation acquired 13,500 shares of Syn Company stock for $30 per share on January 1, 2011, when Syn's stockholders' equity consisted of $300,000 capital stock and $30,000 retained earnings.
2. Syn Company's land was undervalued when Pen acquired its interest, and accordingly, $40,000 of the fair value/book value differential was assigned to land. Any remaining differential is assigned to unrecorded patents with a 10-year remaining life.
3. Syn Company owes Pen $10,000 on account, and Pen owes Syn $10,000 on a note payable.
REQUIRED
Prepare consolidated workpapers for Pen Corporation and Subsidiary for the year ended December 31, 2012.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith