Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $140,500. Financial statement data for the two companies for the year ended December 31, 2011 follow: Parry $479,900 288,300 45,500 3,600 Sent $155,200 120,600 29,300 -()- 76,700 149,700 17.700 - 19,300 5,300 3,600 Income Statement Sales Cost of goods sold Other expense Dividend income Retained Earnings Statement Balance, 1/1 Net income Dividends declared Balance Sheet Cash Accounts receivable Inventory Investment in Sent Company Land Accounts payable Common stock Retained earnings - 83,700 75,200 49,600 140,500 4,100 27,000 117,400 208,700 28,900 56,300 36,300 -0- 12,000 13,900 98,600 21,000 (b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2011. Any difference between the book value of equity acquired and the value implied by the purchase price relates to subsidiary land. (List items that increase retained earnings first.) Party Corporation and Subsidiary Consolidated statements Workpaper For the Year Ended December 31, 2011 Sent Company Eliminating Entries Parry Corp. cr. Consolidated Balances Income Statement Retained Earnings Statement 00 00000 400 0044 00000 Balance Sheet UUUUUU 000 Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $140,500. Financial statement data for the two companies for the year ended December 31, 2011 follow: Parry $479,900 288,300 45,500 3,600 Sent $155,200 120,600 29,300 -()- 76,700 149,700 17.700 - 19,300 5,300 3,600 Income Statement Sales Cost of goods sold Other expense Dividend income Retained Earnings Statement Balance, 1/1 Net income Dividends declared Balance Sheet Cash Accounts receivable Inventory Investment in Sent Company Land Accounts payable Common stock Retained earnings - 83,700 75,200 49,600 140,500 4,100 27,000 117,400 208,700 28,900 56,300 36,300 -0- 12,000 13,900 98,600 21,000 (b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2011. Any difference between the book value of equity acquired and the value implied by the purchase price relates to subsidiary land. (List items that increase retained earnings first.) Party Corporation and Subsidiary Consolidated statements Workpaper For the Year Ended December 31, 2011 Sent Company Eliminating Entries Parry Corp. cr. Consolidated Balances Income Statement Retained Earnings Statement 00 00000 400 0044 00000 Balance Sheet UUUUUU 000