Question
Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2012, for a cash payment of $599,800. December 31, 2012, trial
Punca Company purchased 85% of the common stock of Surrano Company on July 1, 2012, for a cash payment of $599,800. December 31, 2012, trial balances for Punca and Surrano were:
Surrano Company declared a $50,300 cash dividend on December 20, 2012, payable on January 10, 2013, to stockholders of record on December 31, 2012. Punca Company recognized the dividend on its declaration date. Any difference between book value and the value implied by the purchase price relates to subsidiary land, included in property and equipment. Income is earned evenly throughout the year. Prepare a consolidated statements workpaper at December 31, 2012.
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Punca Surrano $ 182,700 $151,400 Current Assets Treasury Stock at Cost, 500 shares -0- 48,400 Investment in Surrano Company 599,800 -0- Plant and Equipment 757,900 1,237,500 Cost of Goods Sold 1,569,600 773,000 Other Expenses 251,300 407,600 0 Dividends Declared 50,300 $3,965,900 $2,063,600 Total Accounts and Notes Payable $152,500 $272,900 Dividends Payable -0- 50,300 Common Stock, $5 par value 40,700 273,900 Other Contributed Capital 911,200 249,500 Retained Earnings, 1/1 354,000 244,700 Sales 1,319,800 2,111,145 Dividend Income 6,100 42,755 $3,965,900 $2,063,600 Total Punca Company and Subsidiary Consolidated Statements Workpaper For the Year Ended December 31, 2012 Eliminating Entries Punca Noncontrolling Surrano Consolidated Balance Company Company Dr. Cr. Interest Income Statement $ Retained Earnings Statement Balance Sheet Total Noncontrolling Interest 1/1 Noncontrolling Interest 12/31 Noncontrolling Interest 12/31 TotalStep by Step Solution
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