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Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $452,610. At that time, Score Company
Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $452,610. At that time, Score Company had stockholders' equity consisting of common stock, $200,300; other contributed capital, $157,300; and retained earnings, $91,800. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Price Score Cash $109,700 $76,700 Accounts Receivable 168,800 92,700 Note Receivable 74,700 -0- Inventory 304,500 160,900 Investment in Score Company 452,610 -0- Plant and Equipment 946,100 424,900 Land 162,100 69,300 Dividends Declared 68,700 50,100 Cost of Goods Sold 825,500 241,200 Other Expenses 252,700 125,800 Total Debits $3,365,410 $1,241,600 Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits $134,300 $45,500 298,700 118,900 499,400 200,300 264,900 157,300 686,300 207,200 1,429,250 512,400 -0- $3,365,410 $1,241,600 52,560 Price Company's note receivable is receivable from Score Company. Interest of $7,470 was paid by Score to Price during 2015. Any difference between book value and the value implied by the purchase price relates to goodwill. Prepare a consolidated statements workpaper on December 31, 2015. (List items that increase retained earnings first.) Price Company and Subsidiary Consolidated Statements Workpaper For the Year Ended December 31, 2015 Price Score Eliminating Entries Company Company Dr. Cr. Noncontrolling Interest Consolidated Balance Income Statement Retained Earnings Statement Balance Sheet Total Noncontrolling Interest 1/1 Noncontrolling Interest 12/31 $
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