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Problem 5-2 LO 2) Cost method, 90%, straight-line bonds. On January 1, 2015. Parker Company acquired 90% of the common stock of Stride Company for

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Problem 5-2 LO 2) Cost method, 90%, straight-line bonds. On January 1, 2015. Parker Company acquired 90% of the common stock of Stride Company for $351,000. On this date, Stride had common stock, other paid-in capital in excess of par, and retainesd earnings of $100,000, $40,000, and $210,000, respectively. The excess of cost over book value is due to goodwill. In both 2015 and 2016, Parker accounted for the investment in Stride usi the cost method. ng On January 1, 2015, Stride sold $100,000 par value of 10-year, 8% bonds for $94,000. The bonds pay interest semiannually on January 1 and July 1 of cach year. On December 31, 2015 Parker purchased all of Stride's bonds for $98,200. The bonds are still held on December 31, 2016. Both companies correctly recorded all entries relative to bonds and interest, using straight-line amortization for premium or discount. The trial balances of Parker Company and its subsidiary were as follows on December 31, 2016: Parker Stride Company Company nterest Receivable Other Current Assets 4,000 246,400 351,000 98,400 80,000 315,200 Investment in Stride Bonds Land Buildings and Equipment. Accumulated Depreciation Interest Payable Other Current Liabilities.. Bonds Payable (8%) Discount on Bonds Payable Other Long-Term Liabilities . Common Stock-Parker Company.. 60,000 400,000280,000 (60,000) (4,000) (98,000) (56,000) (100,000) 4,800 (120,000) (200,000) (100,000 200,000) 365,000) Common Stock-Stride Company Other Paid-n Capital in Excess of Par-Stride Company.. Retained Earnings-Stride Company (100,000) (40,000) (260,000) 640,000(350,000) Cost of Goods Sold Operating Expenses Interest Expense Interest Income.... Dividend Income Dividends Declared 360,000 168,400 200,000 71,400 8,600 (8,200) 27,000) 50,000 30,000 0 Prepare the worksheet necessary to produce the consolidated financial statements of Parker and tations to the Totals .. its subsidiary Stride for the year ended December 31, 2016. Round all compu dollar nearest

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