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Workpapers (excess due to undervalued land and goodvwil) Separate-company financial statements for Pun Corporation and its subsidiary, Soa Company, at and for the year ended
Workpapers (excess due to undervalued land and goodvwil) Separate-company financial statements for Pun Corporation and its subsidiary, Soa Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands): Combined Income and Retained Earnings Statement for the Year Ended December 31 $100 Income from Son Cost of sales Expenses 21.6 (250) Net income (100.6(26 Add: Retained earnings January Deduct: Dividends 34 Retained earmings December 31 Pun Balance Sheet at December 31 S 18 80 s 15 20 Dividends receivable from Son 7.2 Note receivable from Pun Investment in So Buildings-nel 95 10 30 170 130 Total assets Accounts payable Note payable to Son Dividends payable S 85 S 10 Capital stock. S10 par Retained earnings Total equities 500 202 150 42 ADDITIONAL INFORMATION 1. Pun Corporation acquired 13,500 shares of Son Company stock for $15 per share on January 1,201 when Son's stockholders' equiry consisted of S150,000 capital stock and S15,000 retained earnings. Son Company's land was undervalued wheo Pun acquired its interest, and accordingly, S20,000 of the fair value/book value differential was assigned to land. Any remaining differential is goodwill 3. Son Company owes Pun $5,000 on account, and Pun owes Son S5,000 on a note payable. EQUIRED:Prepare consolidation workpapers for Pun Corporation and Subsidiary for the year ended December 31,2012. Workpapers (excess due to undervalued land and goodvwil) Separate-company financial statements for Pun Corporation and its subsidiary, Soa Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands): Combined Income and Retained Earnings Statement for the Year Ended December 31 $100 Income from Son Cost of sales Expenses 21.6 (250) Net income (100.6(26 Add: Retained earnings January Deduct: Dividends 34 Retained earmings December 31 Pun Balance Sheet at December 31 S 18 80 s 15 20 Dividends receivable from Son 7.2 Note receivable from Pun Investment in So Buildings-nel 95 10 30 170 130 Total assets Accounts payable Note payable to Son Dividends payable S 85 S 10 Capital stock. S10 par Retained earnings Total equities 500 202 150 42 ADDITIONAL INFORMATION 1. Pun Corporation acquired 13,500 shares of Son Company stock for $15 per share on January 1,201 when Son's stockholders' equiry consisted of S150,000 capital stock and S15,000 retained earnings. Son Company's land was undervalued wheo Pun acquired its interest, and accordingly, S20,000 of the fair value/book value differential was assigned to land. Any remaining differential is goodwill 3. Son Company owes Pun $5,000 on account, and Pun owes Son S5,000 on a note payable. EQUIRED:Prepare consolidation workpapers for Pun Corporation and Subsidiary for the year ended December 31,2012
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