Consolidated Workpaper, Equity Method (Note that this is the same problem as Problem 4-7, but assuming the use of the equity method.)
Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2002, 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, 2006, trial balances for Price Company and Score Company were as follows: LO6 Price Score Cash $ 109,000 $ 78,000 Accounts Receivable 166,000 94,000 Note Receivable 75,000 —0—
Inventory 309,000 158,000 Investment in Score Company 633,600 —0—
Plant and Equipment 940,000 420,000 Land 160,000 70,000 Dividends Declared 70,000 50,000 Cost of Goods Sold 822,000 242.000 Operating Expenses 250,500 124,000 Total Debits $3,535,100 $1,236,000 Price Score Accounts Payable $ 132,000 $ 46,000 Notes Payable 300,000 120,000 Common Stock 500,000 200,000 Other Contributed Capital 260,000 160,000 Retained Earnings, 1/1 795,000 210,000 Sales 1,420,000 500,000 Equity in Subsidiary Income 120,600 l= Interest Income 7,500 —0—
Total Credits $3,535,100 $1,236,000 Price Company’s note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2006. Any difference between cost and book value relates to goodwill.
Required:
Prepare a consolidated statements workpaper on December 31, 2006.

Parker Sid Cash $ 70,000 $ 20,000 Accounts Receivable 60,000 35,000 Inventory 40,000 30,000 Investment in Sid Company 193,500 —0—
Plant and Equipment 125,000 90,000 Land 48,500 45,000 Dividends Declared 20,000 15,000 Cost of Goods Sold 160,000 65,000 Operating Expenses 35,000 20,000 Total Debits $752,000 $320,000 Accounts Payable $ 16,500 $ 16,000 Other Liabilities 15,000 24,000 Common Stock, par value $10 200,000 120,000 Other Contributed Capital 70,000 20,000 Retained Earnings, 1/1 168,000 30,000 Sales 260,000 110,000 Equity in Subsidiary Income 22,500 —0—
Total Credits $752,000 $320,000