Prepare stockholders’ equity section of consolidated balance sheet one year after acquisition
Pas and Sal Corporations’ balance sheets at December 31, 2010, are summarized as follows (in thousands):
|
Pas |
Sal |
|
|
Cash |
$510 |
$120 |
|
Other assets |
400 |
350 |
|
Total assets |
$910 |
$470 |
|
Liabilities |
$140 |
$ 70 |
|
Capital stock, par $10 |
600 |
350 |
|
Additional paid in capital |
100 |
30 |
|
Retained earnings |
70 |
20 |
|
Total equities |
$910 |
$470 |
Pas acquired 80 percent of the voting stock of Sal on January 2, 2011, at a cost of $320,000. The fair values of Sal’s net assets were equal to book values on January 2, 2011. During 2011, Pas reported earnings of $110,000, including income from Sal of $32,000, and paid dividends of $50,000. Sal’s earnings for 2011 were $40,000 and its dividends were $30,000.
REQUIRED : Prepare the stockholders’ equity section of the December 31, 2011, consolidated balance sheet for Pas Corporation and Subsidiary.