Consolidated Balance Sheet Workpaper On January 1, 2004, Perry Company purchased 8,000 shares of Soho Company’s common stock for $120,000. Immediately after the stock acquisition, the statements of financial position of Perry and Soho appeared as follows: LO7 Assets Cash Accounts Receivable Inventory Investment in Soho Company Plant Assets Accumulated Depreciation—Plant Assets Total Liabilities and Owners’ Equity Current Liabilities Mortgage Notes Payable Common Stock, $10 par value Premium on Common Stock Retained Earnings Total Required:
A. Calculate the percentage of Soho acquired by Perry Company. Prepare a schedule to compute the difference between cost and book value of equity acquired. Any difference between the cost of the investment and the book value of equity acquired relates to subsidiary plant assets.
Perry Soho $ 39,000 $ 19,000 53,000 31,000 42,000 25,000 120,000 160,000 110,500 (52,000) (19,500)
$ 362,000 $166,000 Perry Soho $ 18,500 $ 26,000 40,000 120,000 100,000 135,000 16,500 48,500 23,500 $ 362,000 $166,000 B. Prepare a consolidated balance sheet workpaper as of January 1, 2004.