Separate-company financial statements for Pun Corporation and its subsidiary, Son Company, at and for the year ended

Question:

Separate-company financial statements for Pun Corporation and its subsidiary, Son Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands):

Separate-company financial statements for Pun Corporation and its subsidiary, Son

ADDITIONAL INFORMATION
1. Pun Corporation acquired 13,500 shares of Son Company stock for $15 per share on January 1, 2011, when Son's stockholders' equity consisted of $150,000 capital stock and $15,000 retained earnings.
2. Son Company's land was undervalued when Pun acquired its interest, and accordingly, $20,000 of the fair value/book value differential was assigned to land. Any remaining differential is goodwill.
3. Son Company owes Pun $5,000 on account, and Pun owes Son $5,000 on a note payable.
REQUIRED
Prepare consolidation workpapers for Pun Corporation and Subsidiary for the year ended December 31, 2012.

Financial Statements
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

Question Posted: