P5-31 Incomplete Data LO 5-1, 5-2

Paragraph Corporation acquired controlling ownership of Sentence Corporation on December 31, 20X3, and a consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:

Paragraph Corporation acquired controlling ownership of Sentence Corporation on December 31, 20x3, and a consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow: PARAGRAPH CORPORATION AND SENTENCE Balance Sheet Data December 31, 20x3 6360 3500 Accounts Receivable Inventory Buildings & Equipment 215,000 Investment in Sentence Corporason Goodwill Total Assets Liabilities & Equities Accounts Payable Wages Payable Notes Payable Common Stock Retained Eamings 115.000 46.000 Total Liabilties & Equities During 20X3, Paragraph provided engineering services to Sentence and has not yet been paid for them. There were no other receivables or payables between Paragraph and Sentence at December 31, 20X3. Required: a. What is the amount of unpaid engineering services at December 31, 20X3, on work done by Paragraph for Sentence? b. What balance in accounts receivable did Sentence report at December 31 20X3? c. What amounts of wages payable did Paragraph and Sentence report at December 31, 20X3? d. What was the fair value of Sentence as a whole at the date of acquisition? e. What percentage of Sentence's shares were purchased by Paragraph? f. What amounts of capital stock and retained earnings must be reported in the consolidated balance sheet? Capital stock Retained earnings