Thorne Corporation purchased controlling ownership of Skyler Corporation on December 31, 20X3, and a consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at the date were:

During 20X3, Thorne provided engineering services to Skyler and has not yet been paid for the services. There were no other receivables or payables between Thorne and Skyler at December 31, 20X3.
Required

a. What is the amount of unpaid engineering services at December \(31,20 \times 3\), on work done by Thorne for Skyler?

b. What balance in accounts receivable did Skyler report at December 31, 20X3?

c. What amounts of wages payable did Thorne and Skyler report at December 31, 20X3?

d. What percentage of Skyler's shares were purchased by Thorne?

e. What amounts of capital stock and retained earnings must be reported in the consolidated balance sheet?

f. What amount did Thorne pay to acquire the Skyler shares?

Transcribed Image Text:

Thorne Corporation and Skyler Corporation Item Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Balance Sheet Data December 31, 20X3 Investment in Skyler Corporation Stock Goodwill Total Assets Thorne Corporation $ 60.500 98,000 105.000 Skyler Corporation Consolidated Entity $ 95.500 148.000 191.500 $ 35.000 80.000 400.000 340.000 766.000 (215.000) (140.000) (355.000) 9,000 $620,000 $380.000 $855.000