Separate-company financial statements for Pun Corporation and its subsidiary, Son Company, at and for the year ended December 31, 2012, are summarized as follows (in thousands):
| Pun | Son |
Combined Income and Retained Earnings Statement for the Year Ended December 31 | ||
Sales | $400 | $100 |
Income from Son | 21.6 | — |
Cost of sales | (250) | (50) |
Expenses | (100.6) | (26) |
Net income | 71 | 24 |
Add: Retained earnings January 1 | 181 | 34 |
Deduct: Dividends | (50) | (16) |
Retained earnings December 31 | $202 | $ 42 |
Balance Sheet at December 31 | ||
Cash | $ 18 | $ 15 |
Accounts receivable—net | 80 | 20 |
Dividends receivable from Son | 7.2 | — |
Note receivable from Pun | — | 5 |
Inventory | 95 | 10 |
Investment in Son | 226.8 | — |
Land | 65 | 30 |
Buildings—net | 170 | 80 |
Equipment—net | 130 | 50 |
Total assets | $792 | $210 |
Accounts payable | $ 85 | $ 10 |
Note payable to Son | 5 | — |
Dividends payable | — | 8 |
Capital stock, $10 par | 500 | 150 |
Retained earnings | 202 | 42 |
Total equities | $792 | $210 |
ADDITIONAL INFORMATION
1. Pun Corporation acquired 13,500 shares of Son Company stock for $15 per share on January 1, 2011, when Son’s stockholders’ equity consisted of $150,000 capital stock and $15,000 retained earnings.
2. Son Company’s land was undervalued when Pun acquired its interest, and accordingly, $20,000 of the fair value/book value differential was assigned to land. Any remaining differential is goodwill.
3. Son Company owes Pun $5,000 on account, and Pun owes Son $5,000 on a note payable.
REQUIRED : Prepare consolidation workpapers for Pun Corporation and Subsidiary for the year ended December 31, 2012.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.