P 3-6 Consolidated balance sheet workpapers with goodwill and dividends Pam Corporation paid $1,800,000 cash for 90 percent of Sun Corporation’s common stock on January 1, 2016, when Sun had $1,200,000 capital stock and $400,000 retained earnings. The book values of Sun’s assets and liabilities were equal to fair values. During 2016, Sun reported net income of $80,000 and declared $40,000 in dividends on December 31. Balance sheets for Pam and Sun at December 31, 2016, are as follows (in thousands): Pam Sun Assets Cash $ 168 $ 80 Receivables—net 200 520 Inventories 1,400 200 Land 600 800 Equipment—net 2,400 400 Investment in Sun 1,836 $6,604 $2,000 Equities Accounts payable $1,640 $ 320 Dividends payable 240 40 Capital stock 4,000 1,200 Retained earnings 724 440 $6,604 $2,000 Required Prepare consolidated balance sheet workpapers for Pam Corporation and Subsidiary for December 31, 2016.
P 3-6 Consolidated balance sheet workpapers with goodwill and dividends
Pam Corporation paid $1,800,000 cash for 90 percent of Sun Corporation’s common stock on January 1, 2016, when Sun had $1,200,000 capital stock and $400,000
|
|
Pam |
Sun |
|---|---|---|
|
Assets |
|
|
|
Cash |
$ 168 |
$ 80 |
|
Receivables—net |
200 |
520 |
|
Inventories |
1,400 |
200 |
|
Land |
600 |
800 |
|
Equipment—net |
2,400 |
400 |
|
Investment in Sun |
1,836 |
|
|
|
$6,604 |
$2,000 |
|
Equities |
|
|
|
Accounts payable |
$1,640 |
$ 320 |
|
Dividends payable |
240 |
40 |
|
Capital stock |
4,000 |
1,200 |
|
Retained earnings |
724 |
440 |
|
|
$6,604 |
$2,000 |
Required
Prepare consolidated balance sheet workpapers for Pam Corporation and Subsidiary for December 31, 2016.
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