At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo...
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Accounting
At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo Company for $533,615. On that date, Succo Companys stockholders equity consisted of the following:
Common stock
$323,500
Other contributed capital
107,200
Retained earnings
131,000
Total
$561,700
During 2017, Succo Company reported net income of $43,400 and distributed dividends in the amount of $18,300. Succo Companys retained earnings balance at the end of 2016 amounted to $158,500. Presidio Company uses the equity method. Prepare in general journal form the workpaper entries necessary in the compilation of consolidated financial statements on December 31, 2017.
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