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On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Company Pocket Company Assets Land Buildings (net) Equipment Investment in Pocket 's ordinary shares $175,000 $525,000 $280,000 $1,470,000 $35,000 $280,000 $595,000 $105,000 Accounts Receivable $70,000 Current assets $70,000 $70,000 Totals $2,555,000 $1,120,000 Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings Pocket Notes Payable Accounts Payable Totals $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Fair value $420,000 $735,000 Assets Land Buildings (net) Equipment $280,000 Accounts Receivable $70,000 $70,000 Cash

On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Company Pocket Company Assets Land Buildings (net) Equipment Investment in Pocket 's ordinary shares $175,000 $525,000 $280,000 $1,470,000 $35,000 $280,000 $595,000 $105,000 Accounts Receivable $70,000 Current assets $70,000 $70,000 Totals $2,555,000 $1,120,000 Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings Pocket Notes Payable Accounts Payable Totals $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Fair value $420,000 $735,000 Assets Land Buildings (net) Equipment $280,000 Accounts Receivable $70,000 $70,000 Cash

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a consolidated statement of financial position for Parker Company and subsidiary on January 2, 2020.

On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Pocket Company Company Assets Land $280,000 $595,000 $105,000 $175,000 $525,000 $280,000 $1,470,000 $35,000 $70,000 $2,555,000 $1,120,000 Buildings (net) Equipment Investment in Pocket 's ordinary shares Accounts Receivable $70,000 $70,000 Current assets Totals Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings-Pocket Notes Payable Accounts Payable $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 Totals An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Assets Land Fair value $420,000 Buildings (net) Equipment Accounts Receivable $735,000 $280,000 $70,000 $70,000 Cash
Transcribed Image Text:On January 2, 2020, Parker Company purchased 100% of the outstanding ordinary shares of Pocket Company for $1,470,000. After the purchase, the statements of financial position of the two companies appeared as follows: Parker Pocket Company Company Assets Land $280,000 $595,000 $105,000 $175,000 $525,000 $280,000 $1,470,000 $35,000 $70,000 $2,555,000 $1,120,000 Buildings (net) Equipment Investment in Pocket 's ordinary shares Accounts Receivable $70,000 $70,000 Current assets Totals Liabilities and Equity Share capital-Parker Share capital Pocket Retained earnings-Parker Retained earnings-Pocket Notes Payable Accounts Payable $1,295,000 $700,000 $840,000 $210,000 $105,000 $105,000 $2,555,000 $1,120,000 $210,000 $210,000 Totals An analysis showed that the fair value of the assets of Pocket Company on January 2, 2020 as follows: Assets Land Fair value $420,000 Buildings (net) Equipment Accounts Receivable $735,000 $280,000 $70,000 $70,000 Cash
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