Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2009, for $450,000. At that time, Score Company had stockholders’ equity consisting of common stock, $200,000; other contributed capital, $160,000; and retained earnings $90,000. On December 31, 2013, trial balances for Price Company and Score Company were as follows:

Price Company’s note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2013. Any difference between book value and the value implied by the purchase price relates to goodwill.

Required:
Prepare a consolidated statements workpaper on December 31,2013.

Transcribed Image Text:

Price Score Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses 109,000 78,000 94,000 166,000 75,000 309,000 450,000 940,000 160,000 70,000 822,000 250,500 158,000 420,000 70,000 50,000 242,000 124,000 $3,351,500 $1,236,000 Total Debits Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income 132,000 46,000 120,000 200,000 160,000 687000 210,000 500,000 300,000 500,000 260,000 1,420,000 52,500 Total Credits $3,351,500 $1,236,000