Consolidated balance sheet workpapers with goodwill and dividends
Per Corporation paid $900,000 cash for 90 percent of Sim Corporation’s common stock on January 1, 2011, when Sim had $600,000 capital stock and $200,000 retained earnings. The book values of Sim’s assets and liabilities were equal to fair values. During 2011, Sim reported net income of $40,000 and declared $20,000 in dividends on December 31. Balance sheets for Per and Sim at December 31, 2011, are as follows (in thousands):
|
Per |
Sim |
|
|
Assets |
||
|
Cash |
$ 84 |
$ 40 |
|
Receivables—net |
100 |
260 |
|
Inventories |
700 |
100 |
|
Land |
300 |
400 |
|
Equipment—net |
1,200 |
200 |
|
Investment in Sim |
918 |
— |
|
$3,302 |
$1,000 |
|
|
Equities |
$ 820 |
$ 160 |
|
Accounts payable |
120 |
20 |
|
Dividends payable |
2,000 |
600 |
|
Capital stock |
362 |
220 |
|
Retained earnings |
$3,302 |
$1,000 |
REQUIRED : Prepare consolidated balance sheet work papers for Per Corporation and Subsidiary for December 31, 2011.