Per Corporation paid $1,800,000 cash for 90 percent of Sim Corporation's common stock on January 1, 2011,

Question:

Per Corporation paid $1,800,000 cash for 90 percent of Sim Corporation's common stock on January 1, 2011, when Sim had $1,200,000 capital stock and $400,000 retained earnings. The book values of Sim's assets and liabilities were equal to fair values. During 2011, Sim reported net income of $80,000 and declared $40,000 in dividends on December 31. Balance sheets for Per and Sim at December 31, 2011, are as follows (in thousands):

REQUIRED
Prepare consolidated balance sheet workpapers for Per Corporation and Subsidiary for December 31, 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...