Pururu Corporation acquired all of the voting stock of Suika Corporation on January 1, 2013, for $210,000 when Suika had common stock of $150,000 and retained earnings of $24,000. The excess of implied over book value was allocated $9,000 to inventories that were sold in 2013, $12,000 to equipment with a 4-year remaining useful life under the straight-line method, and the remainder to goodwill.

Financial statements for Pururu and Suika Corporations at the end of the fiscal year ended December 31, 2014 (two years after acquisition), appear in the first two columns of the partially completed consolidated statements workpaper. Pururu Corp. has accounted for its investment in Suika using the partial equity method of accounting.

Required:

Complete the consolidated statements workpaper for Pururu Corporation and Suika Corporation for December 31, 2014.

Pururu Corporation and Suika Corporation

Consolidated Statements Workpaper

at December 31, 2014

			Eliminations
	Purur Corp.	Suika Corp.	Debit	Credit	Consolidated Balances
INCOME STATEMENT Sales	618,000	180,000
Equity from Subsidiary Income	36,000
Cost of Sales	(450,000)	(90,000)
Other Expenses	(114,000)	(54,000)
Net Income to Ret. Earn.	90,000	36,000
Pururu Retained Earnings 1/1	72,000
Suika Retained Earnings 1/1		3,000
Add: Net Income	90,000	36,000
Less: Dividends	(60,000)	(12,000)
Retained Earnings 12/31	102,000	54,000
BALANCE SHEET
Cash	42,000	21,000
Inventories	63,000	45,000
Land	33,000	18,000
Equipment and Buildings-net	192,000	165,000
Investment in Suika Corp.	240,000
Total Assets	570,000	249,000
LIABILITIES & EQUITIES Liabilities	168,000	45,000
Common Stock	300,000	150,000
Retained Earnings	102,000	54,000
Total Equities	570,000	249,000