Parker Company acquired 90% of the common stock of Stride Company for $351,000. On this date,...

 

 

 

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Parker Company acquired 90% of the common stock of Stride Company for $351,000. On this date, Stride had common stock, other paid-in capital in excess of par, and retained earnings of $100,000, S40,000, and $210,000, respectively. The excess of cost over book value is due to goodwill. In both 2015 and 2016, Parker accounted for the investment in Stride using the cost method. On January 1, 2015, Stride sold $100,000 par value of 10-year, 8% bonds for $94,000. The bonds pay interest semiannually on January 1 and July 1 of each year. On December 31, Parker purchased all of Stride's bonds for $98,200. The bonds are still held on December 31, 2016. Both companies correcaly recorded all entries relative to bonds and interest, using straight-line amortization for premium or discount. The trial balances of Parker Company and its subsidiary were as follows on December 31, 2016: Parker Stride Company Company Interest Receivable.. Other Current Assets.. Investment in Stride Company Investment in Stride Bonds.. Land.. Buildings and Equipment. Accumulated Depreciation Interest Payable. Other Current Liabilities. Bonds Payable (8%) Discount on Bonds Payable. Orher Long-Term Liabilities Common Stock-Parker Company Other Paid-in Capital in Excess of Par-Parker Company. Retained Earnings Parker Company. Common Stock-Stride Company Other Paid-in Capital in Excess of Par-Stride Company Retained Earnings Stride Company Net Sales.. Cost of Goods Sold Operating Expenses Interest Expense. 4,000 246,400 351,000 98,400 80,000 400,000 315,200 60,000 280,000 (120,000) (60,000) (4,000) (56,000) (100,000) 4,800 (98,000) (200,000) (100,000) (200,000) (365,000) (100,000) (40,000) (260,000) (350,000) 200,000 71,400 (640,000) 360,000 168,400 8,600 Interest Income. (8,200) 27,000) 50,000 Dividend Income. Dividends Declared. 30,000 Totals. Prepare the worksheet necessary to produce the consolidated financial statements of Parker and its subsidiary Stride for the year ended December 31, 2016. Round all computations to the nearest dollar. Required for the complete answer: 1. DETERMINATION/DISTRIBUTION OF EXCESS SCHEDULE 2. INCOME DISTRIBUTION SCHEDULE 3. CONSOLIDATED WORKSHEET 4. ELIMINATIONS AND ADJUSTMENT WORKSHEET Parker Company acquired 90% of the common stock of Stride Company for $351,000. On this date, Stride had common stock, other paid-in capital in excess of par, and retained earnings of $100,000, S40,000, and $210,000, respectively. The excess of cost over book value is due to goodwill. In both 2015 and 2016, Parker accounted for the investment in Stride using the cost method. On January 1, 2015, Stride sold $100,000 par value of 10-year, 8% bonds for $94,000. The bonds pay interest semiannually on January 1 and July 1 of each year. On December 31, Parker purchased all of Stride's bonds for $98,200. The bonds are still held on December 31, 2016. Both companies correcaly recorded all entries relative to bonds and interest, using straight-line amortization for premium or discount. The trial balances of Parker Company and its subsidiary were as follows on December 31, 2016: Parker Stride Company Company Interest Receivable.. Other Current Assets.. Investment in Stride Company Investment in Stride Bonds.. Land.. Buildings and Equipment. Accumulated Depreciation Interest Payable. Other Current Liabilities. Bonds Payable (8%) Discount on Bonds Payable. Orher Long-Term Liabilities Common Stock-Parker Company Other Paid-in Capital in Excess of Par-Parker Company. Retained Earnings Parker Company. Common Stock-Stride Company Other Paid-in Capital in Excess of Par-Stride Company Retained Earnings Stride Company Net Sales.. Cost of Goods Sold Operating Expenses Interest Expense. 4,000 246,400 351,000 98,400 80,000 400,000 315,200 60,000 280,000 (120,000) (60,000) (4,000) (56,000) (100,000) 4,800 (98,000) (200,000) (100,000) (200,000) (365,000) (100,000) (40,000) (260,000) (350,000) 200,000 71,400 (640,000) 360,000 168,400 8,600 Interest Income. (8,200) 27,000) 50,000 Dividend Income. Dividends Declared. 30,000 Totals. Prepare the worksheet necessary to produce the consolidated financial statements of Parker and its subsidiary Stride for the year ended December 31, 2016. Round all computations to the nearest dollar. Required for the complete answer: 1. DETERMINATION/DISTRIBUTION OF EXCESS SCHEDULE 2. INCOME DISTRIBUTION SCHEDULE 3. CONSOLIDATED WORKSHEET 4. ELIMINATIONS AND ADJUSTMENT WORKSHEET