Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits id by $ 109,000 $ 78,000 166,000 94,000 75,000 -0- 309,000 158,000 450,000 -0- 940,000 420,000- 160,000 70,000 70,000 50,000 822,000 242,000 250.500 124,000 $3.351.500 $1,236,000 $ 132,000 $ 46,000 300,000 120,000 500,000 200,000 260,000 160,000 687,000 210,000 1,420,000 500,000 52.500 $3.351.500 $1,236,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
e of
cents
Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders' equity consisting of common stock, $200,000; other com
$160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows:
Price
$ 109,000 $
Cash
Accounts Receivable
Note Receivable
Inventory
Investment in Score Company
Plant and Equipment
Land
Score
78,000
94,000
-0-
166,000
75,000
309,000 158,000
450,000
-0-
940,000 420,000
160,000
70,000
70,000
50,000
822,000
242,000
250,500
124,000
Dividends Declared
Cost of Goods Sold
Operating Expenses
Total Debits
Accounts Payable
Notes Payable
Common Stock
$3,351,500 $1,236,000
$ 132,000 $ 46,000
300,000 120,000
500,000 200,000
260,000 160,000
Other Contributed Capital
Retained Earnings, 1/1
Sales
Dividend and Interest Income
Total Credits
687,000
1,420,000
52,500
$3.351,500 $1,236,000
210,000
500,000
-0-
Price Company's note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2020. Any difference between book value and the value implied by the purchase price relates to goodwil
Required:
Prepare a consolidated statements workpaper on December 31, 2020.
Transcribed Image Text:e of cents Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders' equity consisting of common stock, $200,000; other com $160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows: Price $ 109,000 $ Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Score 78,000 94,000 -0- 166,000 75,000 309,000 158,000 450,000 -0- 940,000 420,000 160,000 70,000 70,000 50,000 822,000 242,000 250,500 124,000 Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Notes Payable Common Stock $3,351,500 $1,236,000 $ 132,000 $ 46,000 300,000 120,000 500,000 200,000 260,000 160,000 Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits 687,000 1,420,000 52,500 $3.351,500 $1,236,000 210,000 500,000 -0- Price Company's note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2020. Any difference between book value and the value implied by the purchase price relates to goodwil Required: Prepare a consolidated statements workpaper on December 31, 2020.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education