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 CORPORATION Balance Sheet Data December 31, 20X3 Paragraph Sentence Consolidated Item Corporation Corporation Entity Assets Cash $ 74,650 $ 57,000 $ 131,650 Accounts Receivable 109,000 ? 159,000 Inventory 116,000 91,000 228,000 Buildings & Equipment 411,000 351,000 651,000 Less: Accumulated Depreciation (215,000) (140,000) (215,000) Investment in Sentence ? Corporation Goodwill 20,000 Total Assets $ 670,850 $ 435,000 $ 974,650 Liabilities & Equities Accounts Payable $ 126,000 $ 57,000 $ 157,000 Wages Payable ? ? 111,850 Notes Payable 211,000 121,000 332,000 Common Stock 131,000 86,000 ? Retained Earnings 126,000 136,000 ? Noncontrolling Interest 116,800 Total Liabilities & $ ? $ 435,000 $ 974,650 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? Unpaid amount b. What balance in accounts receivable did Sentence report at December 31, 20X3? Accounts receivable c. What amounts of wages payable did Paragraph and Sentence report at December 31, 20X3? Paragraph Sentence Wages payable d. What was the fair value of Sentence as a whole at the date of acquisition? Fair value e. What percentage of Sentence's shares were purchased by Paragraph? (Round your answer to whole percentage.) Ownership in Sentence % f. What amounts of capital stock and retained earnings must be reported in the consolidated balance sheet? Capital stock Retained earnings 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 CORPORATION Balance Sheet Data December 31, 20X3 Paragraph Sentence Consolidated Item Corporation Corporation Entity Assets Cash $ 74,650 $ 57,000 $ 131,650 Accounts Receivable 109,000 ? 159,000 Inventory 116,000 91,000 228,000 Buildings & Equipment 411,000 351,000 651,000 Less: Accumulated Depreciation (215,000) (140,000) (215,000) Investment in Sentence ? Corporation Goodwill 20,000 Total Assets $ 670,850 $ 435,000 $ 974,650 Liabilities & Equities Accounts Payable $ 126,000 $ 57,000 $ 157,000 Wages Payable ? ? 111,850 Notes Payable 211,000 121,000 332,000 Common Stock 131,000 86,000 ? Retained Earnings 126,000 136,000 ? Noncontrolling Interest 116,800 Total Liabilities & $ ? $ 435,000 $ 974,650 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? Unpaid amount b. What balance in accounts receivable did Sentence report at December 31, 20X3? Accounts receivable c. What amounts of wages payable did Paragraph and Sentence report at December 31, 20X3? Paragraph Sentence Wages payable d. What was the fair value of Sentence as a whole at the date of acquisition? Fair value e. What percentage of Sentence's shares were purchased by Paragraph? (Round your answer to whole percentage.) Ownership in Sentence % f. What amounts of capital stock and retained earnings must be reported in the consolidated balance sheet? Capital stock Retained earnings
