On January 1, 2022, Parker Company purchased 95% of the outstanding common stock of Sid Company for

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On January 1, 2022, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. On December 31, 2022, the two companies’ trial balances were as follows:image


Required:
A. Prepare a consolidated statements workpaper on December 31, 2022.
B. Prepare a consolidated statements workpaper on December 31, 2023, assuming trial balances for Parker and Sid on that date were:image

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Advanced Accounting

ISBN: 9781119794653

8th Edition

Authors: Debra C. Jeter, Paul K. Chaney

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