On January 1, 2019, Parrot Company purchased 90% of the outstanding common stock of Sieger...
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Accounting
On January 1, 2019, Parrot Company purchased 90% of the outstanding common stock of Sieger Company for $190,000. At that time, Sids stockhlders equity consisted of common stock, $140,000; other contributed capital, $20,000; and retained earnings, $23,000.
Prepare a consolidated statements workpaper on 31 December 2019. Please use the Trial Balance given on the right side. Please complete all steps involved in the cost method (income statement, retained earnings, balance sheet) including preparation of statements, elimination entries and consolidation.
USD ($)
Parrot
Sieger
Cash
42,000
29,000
Accounts receivable
52,000
30,000
Inventory
30,000
18,000
Investment in Sieger
190,000
0
Plant & equipment
95,000
80,000
Land
39,000
34,000
Dividends declared
20,000
20,000
Cost of goods sold
130,000
40,000
Operating exepense
20,000
14,000
Total debits
618,000
265,000
Accounts payable
19,000
12,000
Other liabilities
10,000
20,000
Common stock
210,000
120,000
Other contributed capital
60,000
10,000
Retained Earnings
40,000
23,000
Sales
260,000
80,000
Dividend Income
19,000
0
Total credits
618,000
265,000
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