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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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don't give answer in image format

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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