EXERCISE 4-1 Parent Company Entries, Liquidating Dividend LO 2 Percy Company purchased 80% of the outstanding voting shares of Sonec beginning of 2019 for $387.000. At the time of purchase, Song Company's equity amounted to $475,000. Income and dividend distributions for Sone C through 2021 are as follows: of Song Company at the n's total stockholders Song Company from 2019 $63,500 2019 $63,500 25,000 $2.500 Net income (los) 2020 $52,500 50,000 o Net income (loss) Dividend distribution pen 2021 (555,000) 35,000 Required: Prenare iournal entries on the books of Percy Company from the date of purchase through 2001 account for its investment in Song Company under each of the following assumptions: A. Perey Company uses the cost method to record its investment. B. Percy Company uses the partial equity method to record its investment. C. Percy Company uses the complete equity method to record its investment. The difference between book value of equity acquired and the value implied by the purchase price was attributed solely to an excess of market over book values of depreciable assets, with a to maining life of 10 years. Workpaper Eliminating Entries, Cost Method LOS Park Company purchased 90% of the stock of Salt Company on January 1, 2019, for $465.000, an amount equal to $15,000 in excess of the book value of equity acquired. This excess payment relates to an undervaluation of Salt Company's land. On the date of purchase, Salt Company's retained earnings balance was $50,000. The remainder of the stockholders' equity consists of no-par common stock. During 2023, Salt Company declared dividends in the amount of $10,000, and reported net income of $40,000. The retained earnings balance of Salt Company on December 31,2022, was $160,000. Park Company uses the cost method to record its investment. Required: Prepare in general journal form the workpaper entries that would be made in the preparation of a consolidated statements work paper on December 31, 2023. EXERCISE 4-3 Workpaper Eliminating Entries, Equity Method LO 5 At the beginning of 2014, Presidio Company purchased 95% of the common stock of Succo Company for $494,000. On that date, Succo Company's stockholders' equity consisted of the following: Common stock Other contributed capital Retained earnings Total $300,000 100.000 120,000 $520,000 EXERCISE 4-1 Parent Company Entries, Liquidating Dividend LO 2 Percy Company purchased 80% of the outstanding voting shares of Sonec beginning of 2019 for $387.000. At the time of purchase, Song Company's equity amounted to $475,000. Income and dividend distributions for Sone C through 2021 are as follows: of Song Company at the n's total stockholders Song Company from 2019 $63,500 2019 $63,500 25,000 $2.500 Net income (los) 2020 $52,500 50,000 o Net income (loss) Dividend distribution pen 2021 (555,000) 35,000 Required: Prenare iournal entries on the books of Percy Company from the date of purchase through 2001 account for its investment in Song Company under each of the following assumptions: A. Perey Company uses the cost method to record its investment. B. Percy Company uses the partial equity method to record its investment. C. Percy Company uses the complete equity method to record its investment. The difference between book value of equity acquired and the value implied by the purchase price was attributed solely to an excess of market over book values of depreciable assets, with a to maining life of 10 years. Workpaper Eliminating Entries, Cost Method LOS Park Company purchased 90% of the stock of Salt Company on January 1, 2019, for $465.000, an amount equal to $15,000 in excess of the book value of equity acquired. This excess payment relates to an undervaluation of Salt Company's land. On the date of purchase, Salt Company's retained earnings balance was $50,000. The remainder of the stockholders' equity consists of no-par common stock. During 2023, Salt Company declared dividends in the amount of $10,000, and reported net income of $40,000. The retained earnings balance of Salt Company on December 31,2022, was $160,000. Park Company uses the cost method to record its investment. Required: Prepare in general journal form the workpaper entries that would be made in the preparation of a consolidated statements work paper on December 31, 2023. EXERCISE 4-3 Workpaper Eliminating Entries, Equity Method LO 5 At the beginning of 2014, Presidio Company purchased 95% of the common stock of Succo Company for $494,000. On that date, Succo Company's stockholders' equity consisted of the following: Common stock Other contributed capital Retained earnings Total $300,000 100.000 120,000 $520,000