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Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $139,100....

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Accounting

Parry Corporation acquired a 100% interest in Sent Company on January 1, 2011, paying $139,100. Financial statement data for the two companies for the year ended December 31, 2011 follow:

Income Statement Parry Sent
Sales $478,800 $153,700
Cost of goods sold 285,700 120,600
Other expense 45,600 29,500
Dividend income 3,400 0
Retained Earnings Statement
Balance, 1/1 75,400 19,300
Net income 150,900 3,600
Dividends declared 17,500 3,400
Balance Sheet
Cash 84,400 29,300
Accounts receivable 76,200 56,300
Inventory 49,900 36,400
Investment in Sent Company 139,100 0
Land 4,000 12,000
Accounts payable 27,300 14,200
Common stock 117,500 100,300
Retained earnings 208,800 19,500

(b) Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2011. Any difference between the book value of equity acquired and the value implied by the purchase price relates to subsidiary land. (List items that increase retained earnings first.)

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