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please solve it advance accounting $419 3 1368 [Appendix] Investment account analysis and trial balance workpapers Pep Company paid $99,000 for a 90 percent interest
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$419 3 1368 [Appendix] Investment account analysis and trial balance workpapers Pep Company paid $99,000 for a 90 percent interest in Sim on January 5, 2011, when Sim's capital stock was $60,000 and its retained carings $20,000. Trial balances for the companies at December 31, 2014, are as follows (in thousands): | Pep Sim Cash $ 11 $ 15 Accounts receivable Plant assets Investment in Sim Cost of goods sold Operating expenses Dividends $477.8 $300 Accumulated depreciation Liabilities Capital stock Paid-in excess Retained earnings Sales Income from Sim $477.8 $300 71.6 16.2 The excess fair value over book value acquired was assigned $10,000 to undervalued inventory items that were sold in 2011 and the remainder to patents having a remaining useful life of 10 years from January 1, 2011, REQUIRED 1. Summarize the changes in Pep Company's Investment in Sim account from January 5, 2011, through December 31, 2014 2. Prepare consolidation workpapers for Pep Company and Sim for 2014 using the trial balance approach for your workpapers P 4-15 [Appendix Trial balance workpapers and financial statements in year of acquisition Peg Corporation owns 90 percent of the voting stock of Sup Corporation and 25 percent of the voting stock of Ell Corporation advance accounting
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