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On January 1, 2012, Parker Company purchased 80% of the outstanding common stock of Sid Company for $172,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained earnings, $20,000. Assume that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2012, the two companies' trial balances were as follows: Cash Accounts Receivable Inventory Investment in Sid Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock, par value $10 Other Contributed Capital Retained Earnings, 1/1 Sales Equity in Subsidiary Income Total Credits Parker Ltd $69,000 40,000 29,500 176,000 110,000 48,500 20,000 150,000 35,000 $678,000 *$20,000 15,000 Sid Ltd $35,000 30,000 15,000 0 85,000 40,000 15,000 60,000 20,000 $300,000 $15,000 25,000 200,000 70,000 57,000 300,000 16,000 $678,000 120,000 20,000 20,000 100,000 0 $300,000 Required: A. Prepare a consolidated statements work paper on December 31, 2012.* Accounts payable of Parker Ltd includes $10,000 payable to Sid Ltd. B. Prepare a consolidated statements work paper on December 31, 2013, assuming trial balances for Parker and Sid on that date were: (**Accounts receivable of Sid Ltd includes $ 5,000 due to Parker ltd.) Cash Accounts Receivable Inventory Investment in Sid Company Parker Ltd Sid Ltd $72,500 $20,000 60,000 *35,000 40,000 30,000 191,000 Plant and Equipment Land Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Other Liabilities Common Stock, par value $10 Other Contributed Capital Retained Earnings, 1/1 Sales Equity in Subsidiary Income Total Credits 125,000 48,500 20,000 160,000 35,000 $752,000 $16,500 15,000 90,000 45,000 15,000 65,000 20,000 $320,000 $16,000 24,000 200,000 70,000 168,000 260,000 22,500 $752,000 120,000 25,000 25,000 110,000 0 $320,000