On January 1, 2012, 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. On December 31, 2012, the two companies' trial balances were as

follows:

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, 2012.

B. Prepare a consolidated statements workpaper on December 31, 2013, 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