Consolidated Workpapers, Two Consecutive Years, Cost Method On January 1, 2003, Parker Company purchased 95% of the outstanding common stock of Sid Company for $160,000. At that time, Sid’s stockholders’ equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. Any difference between cost and book value relates to goodwill. On December 31, 2003, the two companies’ trial balances were as follows: LO6 Parker Sid Cash $ 62,000 $ 30,000 Accounts Receivable 32,000 29,000 Inventory 30,000 16,000 Investment in Sid Company 160,000 —0—
Plant and Equipment 105,000 82,000 Land 29,000 34,000 Dividends Declared 20,000 20,000 Cost of Goods Sold 130,000 40,000 Operating Expenses 20,000 14,000 Total Debits $588,000 $265,000 Accounts Payable $ 19,000 $ 12,000 Other Liabilities 10,000 20,000 Common Stock 180,000 120,000 Other Contributed Capital 60,000 10,000 Retained Earnings, 1/1 40,000 23,000 Sales 260,000 80,000 Dividend Income 19,000 —0—
Total Credits $588,000 $265,000 Required:
A. Prepare a consolidated statements workpaper on December 31, 2003.
B. Prepare a consolidated statements workpaper on December 31, 2004, assuming trial balances for Parker and Sid on that date were:

Parker Sid Cash) > $ 67,000 $ 16,000 Accounts Receivable 56,000 32,000 Inventory 38,000 48,500 Investment in Sid Company 160,000 —0—
Plant and Equipment 124,000 80,000 Land 29,000 34,000 Dividends Declared 20,000 20,000 Cost of Goods Sold 155,000 52,000 Operating Expenses 30,000 18,000 Total Debits $679,000 $300,500 Accounts Payable $ 16,000 $ 7,000 Other Liabilities 15,000 14,500 Common Stock 180,000 120,000 Other Contributed Capital 60,000 10,000 Retained Earnings, 1/1 149,000 29,000 Sales 240,000 120,000 Dividend Income 19,000 —0—
Total Credits $679,000 $300,500