Scribd
Upload
30 views

P4-4 Consolidation Workpapers From Separate Financial Statements

Uploaded by

Luthfi Putra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
30 views

P4-4 Consolidation Workpapers From Separate Financial Statements

Uploaded by

Luthfi Putra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

P4-4 Consolidation workpapers from separate

financial statements
Pop Corporation acquires 75 percent interest in Son Corporation on January 1, 2016, for
$720.000 in cash. Financial statements of Pop and Son Corporations for 2016 are as follows
(in thousands):

  Pop Son
Combined Income and Retained Earnings
   
Statements for the Year Ended December 31
Sales 1600 400
Income from Son 72  
- Cost of sales -1000 -200
- Other expenses -388 -104
Net Income 284 96
Add: Retained earnings January 1 720 136
Deduct: Dividends -200 -64
Retained earnings – Dec 31 804 168
   
Balance Sheet at December 31    
Cash 236 60
Accounts receivable 320 80
Dividends receivable from Son 24  
Inventories 380 40
Note receivable from Pop   20
Land 260 120
Buildings — net 680 320
Equipment — net 520 200
Investment in Son 744  
  3164 840
     
Accounts payable 340 40
Note payable to Son 20  
Dividends payable   32
Capital stock, $10 par 2000 600
Retained earnings 804 168
  $3,164 $840

Required:
Prepare consolidation workpapers for Pop Corporation and Subsidiary for the year ended
December 31, 2016. Only the information provided in the financial statements is available;
accordingly, your solution will require some standard assumptions.

You might also like