On January 1,2014,Parry Incorporated paid $72,000 cash for 80% of Samuel Company's common stock.At that time Samuel had $40,000 capital stock and $30,000 retained earnings.The book values of Samuel's assets and liabilities were equal to fair values,and any excess amount is allocated to goodwill.Samuel reported net income of $18,000 during 2014 and declared $5,000 of dividends on December 31,2014.At the time the dividends were declared,Parry recorded a receivable for the amount they expected to receive the following month.A summary of the balance sheets of Parry and Samuel are shown below.

Required:
Complete the consolidated balance sheet working papers for Parry Corporation and Subsidiary at December 31,2014.

Question

On January 1,2014,Parry Incorporated paid $72,000 cash for 80% of Samuel Company's common stock.At that time Samuel had $40,000 capital stock and $30,000 retained earnings.The book values of Samuel's assets and liabilities were equal to fair values,and any excess amount is allocated to goodwill.Samuel reported net income of $18,000 during 2014 and declared $5,000 of dividends on December 31,2014.At the time the dividends were declared,Parry recorded a receivable for the amount they expected to receive the following month.A summary of the balance sheets of Parry and Samuel are shown below.  
  
Required:
Complete the consolidated balance sheet working papers for Parry Corporation and Subsidiary at December 31,2014.

Quizplus · Accepted Answer

The Answer of On January 1,2014,Parry Incorporated paid $72,000 cash for 80% of Samuel Company's common stock.At that time Samuel had $40,000 capital stock and $30,000 retained earnings.The book values of Samuel's assets and liabilities were equal to fair values,and any excess amount is allocated to goodwill.Samuel reported net income of $18,000 during 2014 and declared $5,000 of dividends on December 31,2014.At the time the dividends were declared,Parry recorded a receivable for the amount they expected to receive the following month.A summary of the balance sheets of Parry and Samuel are shown below.  
  
Required:
Complete the consolidated balance sheet working papers for Parry Corporation and Subsidiary at December 31,2014.

On January 1,2014,Parry Incorporated Paid $72,000 Cash for 80% of Samuel