Question 11 Not you silwered Marked out of 1500 Prag question Park Corporation acquired 80% of Soor Corporation on January 1, 2019, for $240,000 cash when Soor's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by Park and the underlying equity acquired in Soor was allocated solely to a patent amortized over 10 years and the amortization expense was included in the subsidiary expenses. Park sold merchandise to Soor during the year in the amount of $30,000 $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for Park and Soor appear in the first two columns of the partially completed consolidated workpaper. Required: Complete the parent's financial statements and prepare the consolidated workpaper for Park and Sport for the year 2019. Show all the calculations Park Corporation and Subsidiary Park Soor Eliminations Consolidated Statements Corp. Corp Dr. Cr 200,000 150,000 Income Statement Sales Income from Soor Cost of Sales 192,000) (47,000) AAR DULL Park Soor Eliminations Consolidated Statements Corp. Corp. Dr. Cr. Income Statement Sales 200,000 150,000 Income from Soor Cost of Sales (47,000) (92,000) (23,000) Other Expenses (57,000) Net Income 46.000 Retained Earnings Statement Retained Earnings 1/1 110,000 47,000 Add: Net Income 46,000 (20,000) 73.000 (30,000) Less: Dividends Retained Earnings 12/31 Balance Sheet 20,000 19,000 Cash Cash 20,000 Accounts Receivable-net 19,000 55,000 120,000 Inventories 140,000 80,000 Patent Land 270,000 420,000 Equipment and Buildings-net 600,000 430,000 Investment in S Corporation 240,000 Total Assets 1.390,000 1.004.000 Equities Accounts Payable 909,000 831,000 Common Stock 300,000 100,000 Retained Earnings 73,000 Total Equities 1.390,000 1,004,000 Question 11 Not you silwered Marked out of 1500 Prag question Park Corporation acquired 80% of Soor Corporation on January 1, 2019, for $240,000 cash when Soor's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference between the price paid by Park and the underlying equity acquired in Soor was allocated solely to a patent amortized over 10 years and the amortization expense was included in the subsidiary expenses. Park sold merchandise to Soor during the year in the amount of $30,000 $10,000 worth of inventory is still on hand at the end of the year with an unrealized profit of $4,000. The separate company statements for Park and Soor appear in the first two columns of the partially completed consolidated workpaper. Required: Complete the parent's financial statements and prepare the consolidated workpaper for Park and Sport for the year 2019. Show all the calculations Park Corporation and Subsidiary Park Soor Eliminations Consolidated Statements Corp. Corp Dr. Cr 200,000 150,000 Income Statement Sales Income from Soor Cost of Sales 192,000) (47,000) AAR DULL Park Soor Eliminations Consolidated Statements Corp. Corp. Dr. Cr. Income Statement Sales 200,000 150,000 Income from Soor Cost of Sales (47,000) (92,000) (23,000) Other Expenses (57,000) Net Income 46.000 Retained Earnings Statement Retained Earnings 1/1 110,000 47,000 Add: Net Income 46,000 (20,000) 73.000 (30,000) Less: Dividends Retained Earnings 12/31 Balance Sheet 20,000 19,000 Cash Cash 20,000 Accounts Receivable-net 19,000 55,000 120,000 Inventories 140,000 80,000 Patent Land 270,000 420,000 Equipment and Buildings-net 600,000 430,000 Investment in S Corporation 240,000 Total Assets 1.390,000 1.004.000 Equities Accounts Payable 909,000 831,000 Common Stock 300,000 100,000 Retained Earnings 73,000 Total Equities 1.390,000 1,004,000
