Exercise 4-8 On May 1, 2015, Peters Company purchased 80% of the common stock of Smith Company for $53,600. Additional data concerning these two companies for the years 2015 and 2016 are 2015 016 Peters Smith Peters Smith $103,500 $26,700 $103,500 $26,700 Other contributed capital43,600 10,700 43,600 10,700 74,200 10,200 119,000 55,800 Co mmon stock Retained earnings, 1/1 Net income (loss) Cash dividends (11/30) 58,500 47,400 34,400 (5,100) 13,700 1,800 5,300 - Any difference between book value and the value implied by the purchase price relates to Smith Company's land. Peters Company uses the cost method to record its investment. Your answer is correct Prepare the workpaper entries that would be made on a consolidated statements workpaper for the years ended December 31, 2015 and 2016 for Peters Company and its subsidiary, assuming that Smith Company's income is earned evenly throughout the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2015 Dividend Income 1440 Dividends Dedared Subsidiary Company 1440 (To record dividend income) Common Stock Subsidiary Company 26700 Other Contributed Capital Subsidiary Company Retalned Eamings Subsidlary Company Difference between Implied and Book Value 10700 10200 3600 11 Examples Excel