Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2012, for a cash payment of $590,000. December 31, 2012, trial balances for Punca and Surrano were:

Surrano Company declared a $50,000 cash dividend on December 20, 2012, payable on January 10, 2013, to stockholders of record on December 31, 2012. Punca Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment. Income is earned evenly throughout the year.
Required:
Prepare a consolidated statements work paper at December 31, 2012.

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Punca Tre asury Stock at Cost, 500 shares Investment in Surrano Company Property and Equipment Cost of Goods Sold 7 Dividends Declared $3,945.000 2,037,000 Accounts and Notes Payable Dividends Payable Capital Stock, $5 par value Other Contributed Capital Retained Earnings, 1/1 Dividend Income