From the following information, prepare a worksheet to prepare consolidated balance sheet for parents and its subs using cost method.

Parent
Investment in Sub1	$20,000	Common Stock Sub 1	$100,000
Investment in sub2	$400,000	Retained earnings of Sub 1	$100,000
Investment in Sub 3	$1,000,000	Common Stock sub 2	$50,000
Investment in sub 4	$2,000,000	Retained earnings sub 2	$550,000
Investment in Sub 5	$5,000,000	Common Stock sub 3	$700,000
Parent’s other assets	$30,000,000	Retained earnings sub 3	$700,000
Parent’s Liabilities	$1,000,000	Common Stock Sub 4	$100,000
Common Stock Parent	$20,000,000	Retained Earnings Sub 4	$1,900,000
Parent’s Ret Earnings	$17,600,000		$1,000,000
		Retained Earnings sub 5	$3,000,000

Dates of purchase, sub’s RE balance on that date, and the percentage purchased on that date:

	1	2	3	4	5
1/1	$40,000-90%	$100,000-10%	$300,000-30%	$1,000,000-10%	$1,000,000-50%
3/1		$200,000-30%	$400,000-10$
6/1		$300,000-30%	$100,000-5%		$3,000,000-50%
9/1			$400,000-20%	$1,500,000-60%
12/1			$900,000-35%
Total Assets	$200,000	$600,000	$800,000	$2,000,000	$4,000,000

Answer rating: 100% (QA)

Consolidated Financial Statements Liabilities Amount in Assets Amount in Parents Capital 39820000 Parents Other Assets 30000000 Retained Earnings 1837... View the full answer