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16) P Company purchased 90% of the outstanding common stock of S Company on January 1, 2013. S Company's stockholders' equity at various dates was: Common stock Retained earnings Total 1/1/13 1/1/17 $400,000 $400,000 120,000 380,000 $520,000 $780,000 12/31/17 $400,000 460,000 $860,000 The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2017 should include a credit to P Company's retained earnings of:

16) P Company purchased 90% of the outstanding common stock of S Company on January 1, 2013. S Company's stockholders' equity at various dates was: Common stock Retained earnings Total 1/1/13 1/1/17 $400,000 $400,000 120,000 380,000 $520,000 $780,000 12/31/17 $400,000 460,000 $860,000 The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2017 should include a credit to P Company's retained earnings of:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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16) P Company purchased 90% of the outstanding common stock of S Company on January 1, 2013. S Company's stockholders' equity at various dates was: Common stock Retained earnings Total a) $80,000. 1/1/13 $400,000 120,000 $520,000 $234,000. $260,000. d) $306,000. 1/1/17 $400,000 380,000 $780,000 The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2017 should include a credit to P Company's retained earnings of: 12/31/17 $400,000 460,000 $860,000
Transcribed Image Text:16) P Company purchased 90% of the outstanding common stock of S Company on January 1, 2013. S Company's stockholders' equity at various dates was: Common stock Retained earnings Total a) $80,000. 1/1/13 $400,000 120,000 $520,000 $234,000. $260,000. d) $306,000. 1/1/17 $400,000 380,000 $780,000 The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2017 should include a credit to P Company's retained earnings of: 12/31/17 $400,000 460,000 $860,000
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