REQUIRED: Prepare consolidated balance sheet workpapers for Per Corporation and Subsidiary for December 31, 2011

REQUIRED: Prepare consolidated balance sheet workpapers for Per Corporation and Subsidiary for December 31, 2011. Transcribed Image Text: PER CORPORATION AND SUBSIDIARY
Р 3-6
CONSOLIDATED BALANCE SHEET WORKING PAPER
FOR YEAR ENDED DECEMBER 31, 2011
| Consolidated|
| Adjustments & Eliminations
Balance
|
(in thousands)
Per
Sim
Debits
Credits
Sheet
168 |
200 |
1,400||
600 |
2,400 |
Cash
80 |
248 |
Receivables–net
520
720
200 |
800 |
400 |
Inventories
1,600 |
Land
1,400 |
2,800 |
1,836 |
Equipment–net
Investment in Sim
1,836 |
Goodwill
Total assets
2,000 ||
8,604 ||
Accounts payable
Dividends payable
6,604
1,640 |
240 |
320 |
40 |
1,960 |
280 |
Capital stock
Retained earnings
Total equities
4,000 |
1,200
5,200||
1,164 |
|
724
440
6,604
2,000 ||
Noncontrolling interest
8,604 | Transcribed Image Text: P 3-6
Consolidated balance sheet workpapers with goodwill and dividends
Per Corporation paid $1,800,000 cash for 90 percent of Sim Corporation’s common stock on January
1, 2011, when Sim had $1,200,000 capital stock and $400,000 retained earnings. The book values of
Sim’s assets and liabilities were equal to fair values. During 2011, Sim reported net income of $80,000
and declared $40,000 in dividends on December 31. Balance sheets for Per and Sim at December 31,
2011, are as follows (in thousands):
Per
Sim
Assets
$ 168
200
1,400
600
2,400
1,836
$6.604
Per
$ 80
520
Cash
Receivables-net
Inventories
200
Land
800
Equipment-net
Investment in Sim
400
$2.000
Sim
Еquities
Accounts payable
Dividends payable
Capital stock
Retained earnings
$1,640
240
$ 320
40
4,000
724
$6,604
1,200
440
$2,000
REQUIRED: Prepare consolidated balance sheet workpapers for Per Corporation and Subsidiary for
December 31, 2011.

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