Please complete per Consolidated worksheet. Use ONLY Microsoft Excel to show your calculations.
Sin P 6-7 Workpaper (upstream sales current and previous years) Par Corporation acquired an 80 percent interest in Sin Corporation on January 1, 2011, for $108,000 cash, when Sin's capital stock was $100,000 and retained earnings were $10,000. The difference between investment fair value and book value acquired is due to a patent being amor- tized over a 10-year period. Separate financial statements for Par and Sin on December 31, 2014, are summarized as follows (in thousands): Par Combined Income and Retained Earnings Statement for the Year Ended December 31, 2014 Sales $650 $120 Income from Sin 42 Cost of sales (390) (40) Other expenses (170) (30) Net income 132 50 Add: Beginning retained earnings 95.6 20 Deduct: Dividends (70) Retained earnings December 31 $157.6 $ 50 Balance Sheet at December 31, 2014 Cash $ 58 $ 20 Accounts receivable 20 Inventories 60 35 Plant assets 290 205 Accumulated depreciation (70) (100) Investment in Sin 121.6 Total assets $499.6 $180 Accounts payable $ 42 $ 30 Capital stock 300 100 Retained earnings 157.6 Total equities $499.6 $180 (20) 40 50 ADDITIONAL INFORMATION 1. Sin's sales include intercompany sales of $8,000, and Par's December 31, 2014, inventory includes $1,000 profit on goods acquired from Sin. Par's December 31, 2013, inventory contained $2,000 profit on goods acquired from Sin. 2. Par owes Sin $4,000 on account. Intercompany Profit Transactions-Plant Assets 215 3. On January 1, 2013, Sin sold plant assets to Par for $60,000. These assets had a book value of $40,000 on that date and are being depreciated by Par over five years. 4. Park uses the equity method to account for its investment in Sin. NAME HERE P 6-7 PAR CORPORATION AND SUBSIDIARY CONSOLIDATION WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2014 80% Adjustments & Eliminations in thousands) Par Sin Debits Credits INCOME STATEMENT Sales 120.0 Income from Sin Cost of sales (390.0) (40.0) Consolidated Statements 650.0 42.0 - 770.0 42.0 (430.0) (170.0) (30.0) (200.0) 0.0 132.0 50.0 182.0 Other expenses Noncontrolling int. share Net income RETAINED EARNINGS Ret earnings Par Ret earnings Sin Net income Dividends 95.6 I 132.0 (70.0) 20.0 50.0 (20.0) 95.6 20.0 182.0 (90.0) 157.6 50.0 207.6 Ret eamings 12/31 BALANCE SHEET Cash Accounts receivable Inventories Plant assets Accumul depreciation Investment in Sin 58.0 40.0 60.0 290.0 20.0 20.0 35.0 205.01 (100.0) 78.0 60.0 95.0 495.0 (170.0) 121.6 (70.0) 121.6 499.6 180.0 Patents Total assets Accounts payable Capital stock Retained earnings Total equities Noncontrolling interest 42.0 300.0 157.6 499.6 30.0 100.0 50.0 180.0 0.0 679.6 72.0 400.0 207.6 0.0 679.6 0.0 0.0
