1 prepare worksheet entries only the information provided in the financial statements is available accordingly your solution will require some standard assumptions sun owned unrecorded patents having a fair value of 582 400 with a useful life of 10 y

Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2017. Financial statements of Pam and Sun Corporations for the year 2017 are provided in next page (in thousands):

REQUIRED:

1- Prepare worksheet entries. Only the information provided in the financial statements is available; accordingly, your solution will require some standard assumptions. Sun owned unrecorded patents having a fair value of 582,400 with a useful life of 10 years.

Pam

80% Sun

Adjustments and

Eliminations

Consolidated

Statements

Debits

Credits

Income Statement

Sales

2080

520

Income from Sun

101.504

Cost of goods sold

(1300)

(260)

Other expenses

(388)

(104)

Retained Earnings Statement

Begg Retained earnings

1023.36

218.4

Dividends

(260)

(83,2)

Ret earnings 31/12

Balance Sheet Statement

Cash

1175.44

378.8

Div receiv from Sun

28.8

Inventories

494

52

Note receiv from Pop

26

Equipment—net

1560

708

Investment in Sun

1066.624

Patent

Total assets

4324.864

1164.8

Accounts payable

442

57.6

Note payable to Sun

26

Dividends payable

36

Capital stock, $10 par

2600

780

Retained earnings

1256.864

291.2

Total equities

 
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