Parker Company acquired 90% of the common stock of Stride Company for $351,000. On this date,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date:
Students also viewed these accounting questions
-
Question 1 1. With the aid of a suitable supporting diagram, outline the purpose and key components of a Decision Support System (DSS). 2. With reference to the diagram you provided in your answer to...
-
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows: Delta-tec Inc. Income Statement (selected items) For the Year Ended December 31, 2016 1 Income from...
-
Consider the following optimization problem: maximize x1,x2 c = x2 1 + 4x2 2 2x1 + 8x2 subject to x1 + 2x2 7. A. about Slater's condition [5 points] Does this problem have strong duality? Use...
-
What is a buy-sell agreement, and how does life insurance facilitate it?
-
What is U for the following reaction at 25oC? 2H2(g) + O2(g) 2H2O(l)
-
What is ecological balance and how is it related to life cycle analysis? (For this question and Question 10-24, refer to the box The concept of ecological balance earlier in this chapter.) Question...
-
The useful life of a device is often published in what document?
-
The annual reports of Delta, Inc. and SunnyDay Company, two manufacturers of computers, reveal the information below for the current year (amounts in millions). Delta sells custom-order personal...
-
Find resources that confirm the importance of budgeting to organizations and answer the question below. Using your work experience think about how budgets can influence the choices made by top...
-
Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July: July 2 Established a petty cash fund by...
-
In one instance, a financial institution loaned you $30,000 for two years at an APR of 4.75% for which you must make monthly payments. In a second instance, you loaned a financial institution $30,000...
-
Consider the following argument and explain whether or not it is valid, and why: Recycling promotes thorough collection and separation of garbage, so it should be implemented as a means of reducing...
-
Summarize what could be done in order to prevent climate change.
-
Find any legal document, for example, one of the many privacy or user agreements you click through to use apps. Copy the original text, and then revise it for clarity and conciseness. By how many...
-
To discourage people from signing up at the Promise/Cash Center site shown in Figure 18, write an article for a blog that warns consumers about questionable business practices. Your objective is to...
-
How would you describe your typical writing style? Now that you learned guidelines for business writing, how willing are you to flex your style to meet the needs of your audience? In what ways is it...
-
There is much misinformation about COVID vaccines being disseminated on Facebook and other social media. Assume Congress passed a law prohibiting Facebook and other social media platforms from...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
On December 31, 2012, Advanced Defense Contractors issued $25,000 face value of 10% bonds at 95. They were five-year bonds with interest paid semiannually, on June 30 and December 31. 1. What are the...
-
What are the advantages and disadvantages of allowing customers to make purchases with credit cards?
-
International Manufacturing decides to acquire a small local manufacturing company called Township Manufacturing. Township Manufacturing has assets with a market value of $120,000 and no liabilities,...
-
Consider the simple linear regression model for the baseball data using Team ERA as the predictor. Find the value of the PRESS statistic and the $R^{2}$ based on PRESS for this model. What...
-
Consider the multiple linear regression model fit to the baseball data in Problem 3.41. Problem 3.41 Consider the 2016 major league baseball data in Table B.22. While team ERA0 was useful in...
-
Consider the multiple linear regression model for the rental price data in Problem 3.42. Problem 3.42 Table B.24 contains data on median family home rental price and other data for 51 US cities. Fit...
Study smarter with the SolutionInn App