Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $139,100....
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Accounting
Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $139,100. Financial statement data for the two companies for the year ended December 31, 2011 follow:
Income Statement
Parry
Sent
Sales
$478,800
$153,700
Cost of goods sold
285,700
120,600
Other expense
45,600
29,500
Dividend income
3,400
0
Retained Earnings Statement
Balance, 1/1
75,400
19,300
Net income
150,900
3,600
Dividends declared
17,500
3,400
Balance Sheet
Cash
84,400
29,300
Accounts receivable
76,200
56,300
Inventory
49,900
36,400
Investment in Sent Company
139,100
0
Land
4,000
12,000
Accounts payable
27,300
14,200
Common stock
117,500
100,300
Retained earnings
208,800
19,500
(b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2011. Any difference between the book value of equity acquired and the value implied by the purchase price relates to subsidiary land. (List items that increase retained earnings first.)
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