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  3. on january 1, 2019, parrot company purchased 90% o

On January 1, 2019, Parrot Company purchased 90% of the outstanding common stock of Sieger...

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Accounting

On January 1, 2019, Parrot Company purchased 90% of the outstanding common stock of Sieger Company for $190,000. At that time, Sids stockhlders equity consisted of common stock, $140,000; other contributed capital, $20,000; and retained earnings, $23,000.

Prepare a consolidated statements workpaper on 31 December 2019. Please use the Trial Balance given on the right side. Please complete all steps involved in the cost method (income statement, retained earnings, balance sheet) including preparation of statements, elimination entries and consolidation.

USD ($) Parrot Sieger
Cash 42,000 29,000
Accounts receivable 52,000 30,000
Inventory 30,000 18,000
Investment in Sieger 190,000 0
Plant & equipment 95,000 80,000
Land 39,000 34,000
Dividends declared 20,000 20,000
Cost of goods sold 130,000 40,000
Operating exepense 20,000 14,000
Total debits 618,000 265,000
Accounts payable 19,000 12,000
Other liabilities 10,000 20,000
Common stock 210,000 120,000
Other contributed capital 60,000 10,000
Retained Earnings 40,000 23,000
Sales 260,000 80,000
Dividend Income 19,000 0
Total credits 618,000 265,000

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