Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $445,950. At that time, Score Company had stockholders' equity consisting of common stock, $201,100; other contributed capital, $158,500; and retained earnings, $89,500. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Other Expenses Total Debits Price Score $109,000 $77,700 168,400 94,500 73,500 -0- 312,900 159,500 445,950 -0- 927,100 422,600 157,200 71,100 68,800 50,900 806,900 239,300 246,900 123,400 $3,316,650 $1,239,000 Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits $134,300 $47,000 294,700 118,400 508,700 201,100 257,400 158,500 694,400 212,800 1,373,990 501,200 53,160 -0- $3,316,650 $1,239,000 Price Company's note receivable is receivable from Score Company. Interest of $7,350 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 Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $445,950. At that time, Score Company had stockholders' equity consisting of common stock, $201,100; other contributed capital, $158,500; and retained earnings, $89,500. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Other Expenses Total Debits Price Score $109,000 $77,700 168,400 94,500 73,500 -0- 312,900 159,500 445,950 -0- 927,100 422,600 157,200 71,100 68,800 50,900 806,900 239,300 246,900 123,400 $3,316,650 $1,239,000 Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits $134,300 $47,000 294,700 118,400 508,700 201,100 257,400 158,500 694,400 212,800 1,373,990 501,200 53,160 -0- $3,316,650 $1,239,000 Price Company's note receivable is receivable from Score Company. Interest of $7,350 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
