Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2017, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. On December 31, 2017, the two companies' trial balances were as follows: Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income. Total Credits Parker $ 62,000 32,000 30,000 160,000 -0- 82,000 34,000 20,000 130,000 40,000 20,000 14.000 $588,000 $265,000 $ 19,000 105,000 29,000 20,000 Sid $30,000 29,000 16,000 Required: A. Prepare a consolidated statements workpaper on December 31, 2017. B. Prepare a consolidated statements workpaper on December 31, 2018, assuming trial balances for Parker and Sid on that date were: $ 12,000 20,000 120,000 10,000 23,000 80,000 10,000 180,000 60,000 40,000 260,000 19.000 -0- $588,000 $265,000 4

On January 1, 2017, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. On December 31, 2017, the two companies' trial balances were as follows: Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income. Total Credits Parker $ 62,000 32,000 30,000 160,000 -0- 82,000 34,000 20,000 130,000 40,000 20,000 14.000 $588,000 $265,000 $ 19,000 105,000 29,000 20,000 Sid $30,000 29,000 16,000 Required: A. Prepare a consolidated statements workpaper on December 31, 2017. B. Prepare a consolidated statements workpaper on December 31, 2018, assuming trial balances for Parker and Sid on that date were: $ 12,000 20,000 120,000 10,000 23,000 80,000 10,000 180,000 60,000 40,000 260,000 19.000 -0- $588,000 $265,000 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

5

Consolidated Workpapers, Two Consecutive Years, Cost Method LO 5 On January 1, 2017, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. On December 31, 2017, the two companies' trial balances were as follows: Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income Total Credits Parker $ 62,000 32,000 30,000 Sid $ 30,000 29,000 16,000 -0- 160,000 105,000 82,000 29,000 34,000 20,000 20,000 130,000 40,000 20,000 14,000 $588,000 $265,000 $ 12,000 20,000 120,000 10,000 23,000 80,000 -0- $ 19,000 10,000 180,000 60,000 40,000 260,000 19,000 $588,000 Required: A. Prepare a consolidated statements workpaper on December 31, 2017. B. Prepare a consolidated statements workpaper on December 31, 2018, assuming trial balances for Parker and Sid on that date were: $265,000
Transcribed Image Text:Consolidated Workpapers, Two Consecutive Years, Cost Method LO 5 On January 1, 2017, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. On December 31, 2017, the two companies' trial balances were as follows: Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend Income Total Credits Parker $ 62,000 32,000 30,000 Sid $ 30,000 29,000 16,000 -0- 160,000 105,000 82,000 29,000 34,000 20,000 20,000 130,000 40,000 20,000 14,000 $588,000 $265,000 $ 12,000 20,000 120,000 10,000 23,000 80,000 -0- $ 19,000 10,000 180,000 60,000 40,000 260,000 19,000 $588,000 Required: A. Prepare a consolidated statements workpaper on December 31, 2017. B. Prepare a consolidated statements workpaper on December 31, 2018, assuming trial balances for Parker and Sid on that date were: $265,000
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Investments and Financial instruments
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.
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
SEE MORE TEXTBOOKS