1. Consolidate balance sheet work papers with goodwill and dividends Per Corporation paid $900,000 cash for...

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1. Consolidate balance sheet work papers with goodwill and dividends Per Corporation paid $900,000 cash for 100 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): Co dissolved. Assets Per Sim Cash $ 82 $ 40 Receivables net 100 260 Inventories 700 100 Land 300 400 Equipment net 1,200 200 Investment in Sim 920 $3,302 $1,000 $ 820 Equities Accounts payable $ 160 Dividends payable 120 20 Capital stock 2,000 600 Retained earnings 362 220 $3,302 $1,000 Prepare all entries for the investment with the corresponding supporting working papers. 1. Consolidate balance sheet work papers with goodwill and dividends Per Corporation paid $900,000 cash for 100 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): Co dissolved. Assets Per Sim Cash $ 82 $ 40 Receivables net 100 260 Inventories 700 100 Land 300 400 Equipment net 1,200 200 Investment in Sim 920 $3,302 $1,000 $ 820 Equities Accounts payable $ 160 Dividends payable 120 20 Capital stock 2,000 600 Retained earnings 362 220 $3,302 $1,000 Prepare all entries for the investment with the corresponding supporting working papers.

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To prepare the entries for the investment in Sim Corporation by Per Corporation we need to record th... View the full answer