On January 1, 2011, 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 2011 and declared $5,000 of dividends on December 31, 2011.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, 2011.

Question

On January 1, 2011, 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 2011 and declared $5,000 of dividends on December 31, 2011.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, 2011.

Quizplus · Accepted Answer

The Answer of On January 1, 2011, 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 2011 and declared $5,000 of dividends on December 31, 2011.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, 2011.

On January 1, 2011, Parry Incorporated Paid $72,000 Cash for 80