Question

Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $445,950. At that time, Score Company had stockholders' equity consisting of common stock, $201,100; other contributed capital, $158,500; and retained earnings, $89,500. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Other Expenses Total Debits Price Score $109,000 $77,700 168,400 94,500 73,500 -0- 312,900 159,500 445,950 -0- 927,100 422,600 157,200 71,100 68,800 50,900 806,900 239,300 246,900 123,400 $3,316,650 $1,239,000 Accounts Payable Notes Payable Common Stock Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits $134,300 $47,000 294,700 118,400 508,700 201,100 257,400 158,500 694,400 212,800 1,373,990 501,200 53,160 -0- $3,316,650 $1,239,000 Price Company's note receivable is receivable from Score Company. Interest of $7,350 was paid by Score to Price during 2015. Any difference between book value and the value implied by the purchase price relates to goodwill. Prepare a consolidated statements workpaper on December 31, 2015. (List items that increase retained earnings first.)