Problem 9-8 (part B)

PARSON COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the year Ended December 31, 2017

Parson Industries Income Statement Sales Dividend Income Total Revenues Cost of Goods Sold Operating Expenses Income Taxes Total Expenses Net/Consolidated Income Noncontrolling Interest in Consolidated Income Preferred Stock Common Stock Net Income to Retained Earnings Retained Earnings Statement 1/1 Retained Earnings - Parson Industries 404,000 4,000 408,000 200,000 36,400 40,200 276,600 131,400

Succo Company 300,000 300,000 160,000 50,000 27,000 237,000 63,000

Eliminations Dr.

131,400

63,000

157,400

1/1 Retained Earnings - Succo Company Preferred Stock Common Stock Net Income from Above Dividends Declared Parson Industries Succo Company Preferred Stock Common Stock 12/31 Retained Earnings to Balance Sheet 131,400 (65,000)

34,000 73,000 63,000

223,800

(45,000) (5,000) 120,000

Parson Industries Balance Sheet Cash and Receivables Inventories Land 396,800 200,000 300,000

Succo Company 205,000 170,000 120,000

Eliminations Dr.

Buildings and Equipment Accumulated Depreciation

697,000 (100,000)

245,000 (70,000)

Investment in Succo Company Goodwill Difference between Implied and Book Value Total Assets Current Liabilities Bonds Payable Preferred Stock - Succo Company Common Stock: Parson Industries, $10 par Succo Company, $10 par Other Contributed Capital: Parson Industries Succo Company Retained Earnings from Above 1/1 Noncontrolling Interest in Net Assets

300,000

1,793,800 370,000 400,000

670,000 100,000 100,000 100,000

600,000 200,000 200,000 223,800 50,000 120,000

12/31 Noncontrolling Interest in Net Assets

Total Liabilities and Equity

1,793,800

670,000

PANY AND SUBSIDIARY Statements Workpaper nded December 31, 2017

Eliminations Cr

Noncontrolling Interest

Consolidated Balances

Eliminations Cr.

Noncontrolling Interest

Consolidated Balances

Problem 9-9 (part B)

PARSON COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the year Ended December 31, 2017

Parson Industries Income Statement Sales Equity Income Total Revenues Cost of Goods Sold Operating Expenses Income Taxes Total Expenses Net/Consolidated Income Noncontrolling Interest in Consolidated Income: Preferred Stock Common Stock Net Income to Retained Earnings Retained Earnings Statement 1/1 Retained Earnings: Parson Industries Succo Company: Preferred Stock Common Stock Net Income from Above Dividends Declared Parson Industries Succo Company Preferred Stock Common Stock 12/31 Retained Earnings to Balance Sheet 404,000 31,433 435,433 200,000 36,400 40,200 276,600 158,833

Succo Company 300,000 300,000 160,000 50,000 27,000 237,000 63,000

Eliminations Dr.

158,833

63,000

192,000 34,000 73,000 63,000

158,833 (65,000)

(45,000) (5,000) 285,833 Parson Industries 120,000 Succo Company 205,000 170,000 120,000 245,000 (70,000) Eliminations Dr.

Balance Sheet Cash and Receivables Inventories Land Buildings and Equipment Accumulated Depreciation

396,800 200,000 300,000 697,000 (100,000)

Investment in Succo Company

362,033

Goodwill Difference between Implied & Book Value Total Assets Current Liabilities Bonds Payable Preferred Stock - Succo Company Common Stock: Parson Industries, $10 par Succo Company, $10 par Other Contributed Capital: Parson Industries Succo Company Retained Earnings from Above 1/1 Noncontrolling Interest in Net Assets

1,855,833 370,000 400,000

670,000 100,000 100,000 100,000

600,000 200,000 200,000 285,833 50,000 120,000

12/31 Noncontrolling Interest in Net Assets Total Liabilities and Equity

1,855,833

670,000

ANY AND SUBSIDIARY tatements Workpaper ded December 31, 2017

Eliminations Cr

Noncontrolling Interest

Consolidated Balances

Eliminations Cr.

Noncontrolling Interest

Consolidated Balances

Problem 9-10 (part B)

PREZO COMPANY AND SUBSIDIARY Consolidated Statements Workpaper For the year Ended December 31, 2011

Prezo Company Income Statement Sales Dividend Income Other Income Gain on Constructive Bond Retirement Loss on Constructive Bond Retirement Total Revenue Expenses Net/Consolidated Income Noncontrolling Interest in Consolidated Income Net Income to Retained Earnings Retained Earnings Statement 1/1 Retained Earnings Prezo Company Satz Company Net Income from Above Dividends Declared Prezo Company Satz Company 12/31 Retained Earnings to Balance Sheet 2,680,000 120,000 266,000

Satz Company 1,860,000 120,000

Eliminations Dr. Cr

3,066,000 2,678,000 388,000

1,980,000 1,580,000 400,000

388,000

400,000

480,000 388,000 (250,000) (150,000) 618,000 550,000 300,000 400,000

Prezo Company Balance Sheet Current Assets Investment in Satz Common Stock Investment in Satz Co. Bonds Other Assets Total Assets Bonds Payable Premium on Bonds Payable Other Liabilities Common Stock: 920,000 880,000 246,189 2,326,411 4,372,600 700,000 1,454,600

Satz Company 580,000

Eliminations Dr. Cr

1,320,000 1,900,000 400,000 20,968 129,032

Prezo Company Satz Company Retained Earnings from Above 1/1 Noncontrolling Interest in Net Assets 12/31 Noncontrolling Interest in Net Assets Total Liabilities and Equities

1,600,000 618,000 800,000 550,000

4,372,600

1,900,000

BSIDIARY orkpaper 31, 2011

Noncontrolling Interest

Consolidated Balances

Noncontrolling Interest

Consolidated Balances